Arizona Trust Lawyers

Providing Valuable Legal Services to Clients Establishing and Managing Trusts in Arizona

Trusts, like last wills, are essential parts of estate plans in Arizona. When properly created, a trust can safeguard the well-being of your family members, protect your property from creditors, avoid the lengthy probate process, and establish your final wishes. There are several different types of trusts – including charitable trusts, special needs trusts, revocable trusts, and testamentary trusts – each with different benefits to the trust creator and their beneficiaries.

If you are interested in the many benefits of establishing a trust, including estate tax planning, financial security, maintaining government benefits, and more, contact our Arizona law firm. Our legal team, led by estate and wealth planning attorney Lisa A. Haster, has extensive experience helping clients create trusts, settle disputes, and assist with trust administration. We pride ourselves on providing compassionate and comprehensive legal representation to individuals managing their estates and planning for the future of their families.

Metropolitan Law Group offers free consultations to prospective new clients interested in retaining our legal services. To schedule your free initial consultation, please get in touch with our Arizona law office today.

What is a Trust?

Trusts are legal arrangements that allow the trust creator (also known as the grantor or settlor) to transfer assets into a trust, which are then managed by a designated trustee. The trustee’s responsibilities include maintaining the trust according to the language of the estate plan document for the benefit of named beneficiaries.

Trusts are critical components of Arizona estate planning. They allow people to protect their assets, list their final wishes, and care for their loved ones during their lifetime and after death.

There are several options for creating trusts in Arizona. Each legal option presents different benefits to the trust grantor and their beneficiaries. To create a trust, you would first meet with our legal staff to discuss your unique needs and estate planning goals. As your lawyers, we would make recommendations and help you arrive at the most satisfactory solution for your needs. We would then draft the agreed-upon documents, review them with you, and modify them per your wishes. If litigation arises between heirs of the estate, our legal team can help settle disputes and provide valuable legal representation during these difficult circumstances.

What is the Difference Between Wills and Trusts?

A last will and testament allows you to name beneficiaries and heirs to your personal property, a guardian for your minor children, and a personal representative (also known as executor) to manage your estate. Wills are often considered the cornerstone of all comprehensive estate plans. However, many thorough estate plans go much further beyond establishing a simple will.

While wills do not go into effect until the creator’s death, trusts can benefit beneficiaries while the trust settlor is still alive. Additionally, whereas a will must go through the probate process, trusts allow you to avoid probate and transfer assets almost immediately after death.

Probate proceedings are a matter of public record. That means that the contents of a will can be read by the public. Trusts, on the other hand, are entirely private.

Larger estates in Arizona may be subject to federal estate taxes when assets pass on through a will. However, placing assets into a trust can reduce the impact of federal estate taxes.

What Are Different Types of Arizona Trusts?

There are several different types of trusts available to Arizona residents. These different types of trusts provide some level of asset protection, tax reductions, benefits to beneficiaries, and more.

Common types of trusts in Arizona include the following:

• Revocable trusts: Also known as a living trust, a revocable trust is designed to be modified or revoked by the trust grantor at any time during their life. Revocable trusts are frequently used to avoid the probate court and provide new levels of flexibility for managing trust assets. If circumstances in life change, the trust grantor has the authority to change how trust assets are distributed.
• Irrevocable trust: An irrevocable trust is a type of trust that cannot be easily altered or revoked by the trust grantor. It is commonly implemented to protect assets from Medicaid. The disadvantage of an irrevocable trust is that the trust grantor cannot change it after it is created without the full express authority of every beneficiary. Additionally, the grantor has no control over how trust assets are distributed after the trust is created.
• Special needs trust: A special needs trust seeks to provide financial support to a disabled beneficiary, allowing them to maintain eligibility for government benefit programs. These supplemental needs trusts can help individuals with special needs enjoy a better quality of life than they would otherwise have without the trust.
• Charitable trusts: A charitable trust is created to benefit a charitable organization or cause while also providing tax benefits to the trust grantor.
• Testamentary trust: these types of trusts are often created in conjunction with the final wishes of a last will and testament. A testamentary trust does not go into effect until the death of the trust settler.
• Spendthrift trusts: These trusts set aside assets and property for an individual whom the trust grantor believes cannot be trusted to make sound financial decisions for themselves. These types of trusts are good for looking after beneficiaries with money problems.

To discuss the different types of trusts and what type of trust may be most beneficial to you and your situation, don’t hesitate to get in touch with our Arizona law firm to schedule your free, no-obligation case evaluation today.

What is the Difference Between Revocable and Irrevocable Trusts?

Revocable trusts are designed to provide the trust creator the opportunity to change or revoke the trust document at any time during their life. This type of trust gives the trust creator full control over trust assets.

Any revocable trust, on the other hand, cannot be changed or revoked once it is created. Assets within revocable trusts are not considered to be the property of the trust creator. As such, this provides significant tax planning benefits and asset protection.

If you wish to inherit assets during your lifetime, a revocable trust is probably the right choice. However, irrevocable trusts have several benefits of their own. To learn more about the differences between revocable and irrevocable trusts, please contact our Chandler law firm for legal guidance.

Do You Need a Trust if You Already Have a Last Will?

It is recommended that everyone over the age of 18 in Arizona have a last will and testament and keep it up to date. However, your estate planning doesn’t need to end there. Trusts provide benefits that wills do not, such as avoiding the probate process, potential tax benefits, and the ability to manage estate assets during your lifetime.

Depending on your circumstances, it may be recommended that you create a trust in addition to a will.

Can Trusts Help to Minimize Estate Taxes?

One of the many benefits of establishing a trust in Arizona is the potential for estate tax savings. By transferring property and valuables into a trust, trust grantors can minimize or potentially even eliminate the amount of estate subject to federal and state estate taxes.

It is worth noting that trust may be subject to various taxes, depending on the type of trust and the trust assets. Contact our highly skilled legal team for assistance.

Do Trusts Avoid Probate?

When an individual dies, the decedent’s estate goes through the probate process. This can be expensive and often time-consuming. Estate property could potentially be liquidated to settle debts, there may be disputes over the deceased’s will, and the process may take many months to a year to conclude.

Assets put into trust avoid probate and can be protected from creditor claims, lawsuits, and other legal matters.

What Does Trust Administration Entail?

The trust administration process, which involves overseeing the management of the trust and distributing trust assets to designated beneficiaries, can be complicated for the trustee. It is often necessary for the trustee to retain professional legal counsel for trust administration issues to ensure that they are in compliance with the law and correctly following the language of the trust.

What is Trust Litigation?

Estate and trust litigation can be a costly legal matter that also damages relationships between surviving family members and heirs.

Our law firm handles several types of trust litigation issues, including the following:

• Fiduciary issues: Accusations of trustees self-dealing, investing assets, and failure to uphold their duties or perform their duties in a timely manner could result in trust litigation.
• Challenges regarding the trust document: Some beneficiaries may dispute whether the settler had the full mental capacity required to execute a trust and whether the document was properly created.
• Undue influence, duress, and fraud: Allegations that a trust was created under duress, fraudulently, or with undue influence from a third party could give rise to trust litigation.

When to Update Your Trust and Other Estate Plan Documents?

Estate plan documents should be updated regularly after significant changes in circumstances and major life events. If your estate plan is not updated, beneficiaries could be passed over, or the wrong beneficiaries may inherit from the estate plan.

Consider updating your trust and other estate planning documents after a divorce, death in the family, the birth of a new child, or a significant change in financial circumstances.

Schedule a Free Consultation with an Experienced Trust Lawyer in Arizona, Today

Our estate planning attorneys have extensive experience representing complex legal matters related to the development, management, and disputes over trusts in Arizona. If you require knowledgeable legal counsel in estate matters, please contact our law offices for legal guidance.

You may reach our law firm by telephone at 4804051970.