A Guide To Arizona Living Trusts

living trust Arizona

Living trusts are legal documents that allow someone to transfer assets to another individual after death. They’re often used to avoid probate court proceedings, which can take years and cost thousands of dollars.

What Are Living Trusts?

A living trust is a legal document that allows someone to transfer assets to someone else after death. It’s also called a “revocable” trust because the owner has the ability to amend or revoke it at any point before he or she dies.

Why Do People Create Living Trusts?

People use a revocable living trust for two main reasons. First is so that someone can manage their money and property if they become incapacitated. Second is to avoid probate when they pass away.

If they want to protect their assets from creditors, they will often use an irrevocable living trust. They do this by transferring ownership of their property to another individual (the trustee) while still alive. This prevents anyone from taking the person’s assets during his or her lifetime.

Types Of Living Trusts

There are two main types of living trusts in Arizona. One type is called a revocable living trust. It allows the owner to revoke or change the trust at any time before he or she dies. The second type is known as a non-revocable living trust. With this type of trust, the owner cannot revoke or amend the trust after creating it. (However, there are still ways to amend or unwind an irrevocable or non-revocable trust.)

Who Can Be The Beneficiary Under A Living Trust?

Anyone can be the beneficiary under a living trust. However, the initial beneficiary is typically the person who creates the trust. Other beneficiaries are usually named to receive the trust income and assets after the first beneficiary dies.

When Should You Create A Living Trust?

It’s especially important to create a living trust if:

  • You have minor children. Otherwise, their inheritance would go into a conservatorship.
  • You own real property in multiple states. Otherwise, there could be multiple probates.
  • You own a business. Otherwise, the court would need to appoint a manager.

Were We Able To Answer Your Questions?

If you still have questions, we would love to help. Call us at 602-443-4888 or use our convenient Contact Form.

We offer services for clients throughout Arizona, including TempePhoenixMesaScottsdaleAnthem, and Paradise Valley.

ABOUT THE AUTHOR

Founding attorney Paul Deloughery has been an attorney since 1998, became a Certified Family Wealth Advisor. He is also the founder of Sudden Wealth Protection Law.

SPREAD THE WORD

NAVIGATING SUDDEN WEALTH

We wrote the book about Sudden Wealth - literally. Learn more and read the first third of the book now.