Setting Up a Living Trust in Arizona
If you are taking care of your estate planning in Arizona, you might want to set up a living trust. To make a living trust in Arizona, you must follow specific processes. You will need to create a trust document that lays out all the specific details regarding your trust. This document must name the trustee as well as the beneficiaries. A trust is an arrangement that is made in which the trustee holds the legal title for the property of another person. That person is the beneficiary. You can even be the trustee of your own living trust, so you can maintain full control of all the property that you have held in the trust.
What are the Advantages of a Living Trust?
There are several benefits to having a living trust. When you have a living trust, you can spare your family stress, time and trouble by helping them avoid delays and expenses associated with probate court after you have died. In Arizona, the Uniform Probate Code is used. This code is designed to simplify the probate process, so creating a living trust could end up being more trouble than it is worth. You should consult with an Arizona estate planning attorney to determine if a living trust would benefit you. An attorney will review your assets and your financial situation, so the proper estate planning action can be taken. What is best for one individual’s estate planning needs might not work for someone else.
Will A Living Trust Substitute for A Will in Arizona?
If you have a living trust prepared, you might wonder if you still need a Last Will and Testament. The answer is yes. You always need to have a Will prepared. A Will makes sure any property that you have that is not included in the trust is properly distributed. As an example, you could become the owner of additional assets before you die and not get your trust updated or changed. With your Will, that property can be distributed as you wish. In your Will, you can list beneficiaries for property that you haven’t included in your living trust. If you fail to prepare a Will, any of your assets and property that is not transferred through your living trust or through joint tenancy, Arizona law will be used to determine ownership and inheritance.
Is Estate Tax Impacted by A Living Trust in Arizona?
Whether or not estate taxes are reduced by a trust are dependent on the kind of trust that you have created by your Arizona estate planning attorney. In some cases, the more complicated and challenging living trusts can reduce the federal estate tax bill for individuals who own more assets of a higher value. Federal estate taxes only apply to estates that are valued at more than $5 million, so most estates are not affected. An example of a more complicated living trust is an AB trust. An AB trust is helpful if a wealthy couple is not legally married, you want to be sure your property is transferred to your children, or if you might owe estate tax on the state level.
Consult With An Arizona Estate Attorney
If you have assets that you want to transfer to your loved ones, you should consult with an estate attorney. Your lawyer will review your assets and other aspects of your situation then determine the best way to proceed with your estate planning process. Your attorney will determine which kind of trust will be helpful for your estate planning and will also help you prepare your last Will and Testament. Click here for information on revoking a will.