If you’re considering estate planning in Arizona, you may want to consider a living trust. This legal document can provide numerous benefits. It can protect your assets from creditors of your beneficiaries. And it can ensure your loved ones are taken care of after you pass away. Learn more about why a living trust is a must-have for estate planning in Arizona.
What is a Living Trust?
A living trust is a legal document that allows you to transfer ownership of your assets to a trustee while you are still alive. The trustee then manages the assets on your behalf and distributes them according to your wishes after you pass away. Unlike a will, a living trust can help you avoid probate court and keep your estate private. It can also provide added protection for your assets and loved ones.
Avoid Probate and Save Time and Money.
One of the biggest benefits of a living trust is that it can help you avoid probate court, which can be a lengthy and expensive process. When you pass away, your assets are distributed according to your wishes by the trustee you appointed in your living trust. This means that your loved ones can avoid the time and expense of going through probate court, which can take months or even years to complete. By creating a living trust, you can save your loved ones time and money while ensuring that your assets are distributed according to your wishes.
Maintain Privacy and Control Over Your Assets.
Another benefit of a living trust is that it allows you to maintain privacy and control over your assets. Unlike a will, which becomes a public record when it goes through probate court, a living trust is a private document that only your trustee and beneficiaries have access to. This means that your personal and financial information remains confidential. Additionally, because you appoint a trustee to manage your assets after you are no longer able to, you can ensure that they are distributed according to your wishes and not subject to the decisions of a court or state law.
Protect Your Assets from Creditors and Lawsuits of Your Beneficiaries.
One of the biggest benefits of a living trust is that it can protect your assets from the creditors and lawsuits of your beneficiaries. A revocable living trust can include a Spendthrift Clause. For example, typical living trusts include the following provision:
No beneficiary may assign, anticipate, encumber, alienate, or otherwise voluntarily transfer the income or principal of any trust created under this trust. In addition, neither the income nor the principal of any trust created under this trust is subject to attachment, bankruptcy proceedings or any other legal process, the interference or control of creditors or others, or any involuntary transfer.
This means that if your beneficiaries are sued or face financial difficulties, their portion of the assets in the trust are protected and cannot be seized by creditors. This can provide peace of mind and ensure that your loved ones receive the inheritance you intended for them.
Ensure Your Loved Ones are Taken Care of After You’re Gone.
Estate planning is an important step in ensuring that your loved ones are taken care of after you pass away. A living trust is a crucial tool in this process. That’s because it allows you to transfer your assets to your beneficiaries without the need for probate court. This can save your loved ones time, money, and stress during an already difficult time. Additionally, a living trust can provide for your loved ones in the event that you become incapacitated or unable to manage your own affairs. By creating a living trust, you can have peace of mind knowing that your loved ones will be taken care of according to your wishes.
Let’s Talk About Why a Living Trust Might Make Sense For You.
If you live in Arizona at least part time, we can help you create an Arizona living trust, along with the other essential estate planning documents. Give us a call at 602-443-4888. We’re here to help.