Trusts Attorneys in Surprise, AZ

There is a notion that trusts used to only be for wealthy families or people with plenty of properties. Times have changed since and now even people who aren’t millionaires or billionaires have started creating living trusts. Trusts ensure that properties can get transferred to inheritors without the need for the probate court to get involved, thus saving families thousands in money, time, and effort.

But what is a trust in the first place? Trusts are documents that allow the trustor to transfer properties to trustees who inherit them after the trustor has died. A revocable living trust is a substitute for a will that people can create and use when they die in order for their estate to avoid probate. Many wish to avoid probate since it saps families dry of time and money.

A trust has many elements that trustors have to familiarize themselves with before creating one. They must know what things to include along with how trusts work. Learning all of these might seem daunting at first but with the help of a trust attorney, one can be sure that things can go a little smoother.

Don’t waste time being confused about trusts. Enlist the help of Surprise, AZ trusts attorneys who can help you in creating, setting up, and administering your trusts. Put your property in the good hands of people you trust by enabling them to inherit it and avoid probate in the process. Our law firm in Surprise, Arizona can help you deal with your estate planning needs.

What is a Trust?

In essence, trusts are fiduciary relationships established between a trustor that gives the trustee the right to hold properties and assets for the benefit of a beneficiary. These legal documents provide legal protection for the assets, ensuring that these are given to people chosen by the trustor. Living wills are typically used in order to steer clear of the costly and time-consuming probate process.

Living trusts hold plenty of advantages. They are private documents unlike wills which become public records and these can take effect if the trustor becomes incapacitated. If you need assistance in wills, trusts, and any estate planning matter, consult with a trusts attorney from Surprise, AZ to know the next best move to take.

How Do I Set Up A Trust?

Before one can set up a trust, they must first know what elements are included in one. The most important parts that comprise a trust are:

  • Settlors or Trustors or Grantors– these people are the ones responsible for creating the trust.
  • Trustee– the individual in charge of trust assets
  • Beneficiary– from the name itself, the beneficiary is the individual who benefits from the trust.

All these individuals are involved in the trust arrangement. Once a living trust has been created, the grantor or trustor transfers the assets to the trustee who then manages the assets that will become inheritance of the beneficiaries. In probate-avoiding trusts, grantors are also the trustees who not only own the property but also manage it in order for it to be inherited. The terms and conditions of living trusts are detailed on a document known as a trust instrument. A trust instrument lists down the properties and how they wished to be managed. A successor trustee is another crucial character in setting up a trust as this individual serves as the trustee if the first trustee dies.

In spite of the existence of online trust creators, it is still highly advisable to get in touch with a trusts attorney who can walk you through the entire process of administering a trust in order to help you avoid the probate process.

A Will & Trust in AZ to Protect Your Family

Thinking about one’s mortality is not something most people like to do, but planning for the unthinkable is a must for every Arizona father, mother, home or business owner. Our estate planning attorneys can help you prepare for and protect you, your family and your assets from lawsuits, taxes, probate and long term care. Call to speak to an Arizona Will & Trusts attorney today.

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What is the Difference Between Living Trusts and Wills?

These two documents are often confused for each other since they are both crucial in estate planning matters. Both trusts and living wills allow an individual to customize their terms and wishes regarding their properties when they pass away, such as determining who will inherit their assets. So how are they different from each other?

For one, a living trust is a cost-efficient method since it helps avoid probate. And even if you own property in a different state, having a living trust helps eliminate the need to probate it. The transfer of property with living trusts is more immediate, meaning it can be transferred if you become incapacitated. Your property is more protected since it is a private document unlike wills which are more public in nature.

Wills on the other hand are subject to probate and even if you can name your executor, the probate court usually has a say in this. Wills also don’t allow direct transfer if you become incapacitated and you would need a healthcare directive to accomplish this.

What Properties are in the Living Trust?

If you are seeking to set up a trust, you must first know what properties are included in living trusts. The property in a living trust are the only ones that will be passed on to beneficiaries. These include:

  • Assets in the Trustee’s Name
  • Assets from a Pour-over will
  • Assets Supposedly in a Trust
  • Assets that Aren’t Affected by the Trust
  1. Life insurance proceeds
  2. Payable on death bank accounts
  3. Retirement accounts
  4. Joint Assets

If there are any concerns regarding what properties must be included in a living trust, know that it is best to consult with a trusts attorney who can guide you in the process of setting up and administering a trust.

What are the Types of Trusts?

There are plenty of types of trusts but there are essentially two major ones, revocable and irrevocable. A revocable trust is created during the trustor’s lifetime and can be changed and revoked as time goes by. An irrevocable trust cannot be altered after its creation. The other types of trusts include:

  • Asset Protection Trust-protecting assets from future claims or creditors.
  • Charitable Trusts– trusts created to benefit a certain charity
  • Constructive Trust-an implied trust established by court depending on certain circumstances
  • Special Needs Trust– is set up for a person who receives government benefits for them not to be disqualified from said benefits.
  • Spendthrift Trust– A trust that does not allow the beneficiary to sell interests
  • Tax By-Pass Trust-created to allow the spouse to leave money while limiting federal estate tax that will be payable on death.
  • Totten Trust-created during the lifetime of a grantor.

Seek Legal Advice from a Trusts Attorney

Do you wish to set up a trust? Are you seeking to avoid probate costs? If so, it is best that you set up a trust. Before doing so, ensure that you seek legal counsel from a trusts attorney. Contact The Dodds Law Firm, PLC by calling our law firm for a consultation. A wills attorney will help you draft your will and offer legal representation.