Individuals who decide to set up a trust do so because of a variety of factors. One of the most common reasons is that they want their wealth to continuously grow for the next generations. Appointing trustees who will manage and administer the trust estate is beneficial in many ways, but the actual process of doing so can be quite difficult to grasp. This is why it is crucial to consult with experienced Phoenix estate planning attorneys.
What this brief article will cover are:
– Legal documents for setting up a trust and appointing a trustee
– How it helps in avoiding the probate process
– More reasons why this estate planning tool is ideal
– Consulting with a reliable Arizona estate planning lawyer
Legal documents for setting up a trust and appointing trustees
A revocable living trust is, very basically, a legal document used for appointing a specific trustee. The appointed trustee, which can be a trust company, a loved one, or the grantors themselves, is tasked with managing and administering trust property. Estate assets, which often include one’s bank account, personal property, real property, or other investments, are placed in the name of the trust account.
Under relevant trust law, a living trust you create may be revoked or amended, at your discretion, essentially anytime during your lifetime. No trust assets are transferred to any beneficiary of trust until you are deceased. In addition to this, any trust beneficiary you decided to appoint can benefit from the flexibility and privacy protection it offers. Trustors who wish to keep private the information and records on probate estate often benefit from trust documents.
Since this estate plan can be amended throughout the remainder of your lifetime, you need a reliable Phoenix estate planning lawyer who will supervise you with your decisions. He or she can also explain how a revocable trust is an ideal choice for those who wish to protect the privacy of their would-be surviving spouse or heirs.
How it helps in avoiding probate proceedings
This estate planning document specifies how property in trust shall be managed when you die. Drafting these are also useful after death primarily because assets of the deceased person that are owned by the trust (and not by the decedent) need not be brought to court and probated.
Revocable trusts enable you to avoid transferring property through probate court. For the children, grandchildren, or any other family member that you will leave behind, this helps them avoid probate costs and the stress that comes with such a legal proceeding.
Such is a stark contrast to last wills and testaments, which could even lead to disputes among heirs you appoint (One could contest your last will and testament, for instance, by using a supposed lack of testamentary capacity as grounds). When you create trust, you could specifically disinherit some who pose a challenge to your death wishes.
More reasons why these estate planning documents are ideal
A married couple often opts to establish a trust if they have a substantial property that they acquired before they were married since these can be segregated from those considered as community property. Additionally, while trust documents do not necessarily minimize estate taxes, provisions in the trust can allow for a transfer of wealth through a credit shelter trust that is established upon death. To set up a credit shelter trust effectively reduces what is taxed for estates that exceed estate tax exemptions.
It is also not unusual for an individual who creates a trust to do so to decide on guardianship while he or she is still alive. Additionally, a revocable living trust could give authority to another individual to make decisions for you if you become disabled or incapacitated. A trustee could be appointed, who could manage financial affairs without having to obtain a durable power of attorney.
Consulting with trusted Phoenix estate planning attorneys
Consult with a professional from a reliable law firm to learn more about asset protection in light of different types of trusts. Whether you are dealing with a revocable or irrevocable living trust, expert legal help is crucial. Call us at Dodds Law Frim and consult with a competent Arizona estate planning attorney.