Effective estate planning can accomplish many things, which is why it is so important to choose a trusts lawyer Phoenix AZ counts on for comprehensive estate planning. Legally sound estate planning, including trusts, enable you to specify how your assets will be distributed after you pass. Using tools like a trust can give you peace of mind. In addition, a trust will make your wishes clear so that there is less room for confusion and conflict among your heirs.
What Is a Trust?
A trust is a legal document that allows an individual to determine how their assets will be distributed among beneficiaries upon the individual’s death. A living trust is similar to a will, but there are a few significant differences between the two.
The trust document itself is written and signed by the owner of the estate. A notary’s signature is usually also required for a trust to be valid. The typical living trust will list the individual’s assets and which beneficiary will receive each asset. It should also name a trustee, who is responsible for disbursing the person’s property upon his/her death. While many people choose to work with a trusts lawyer in Phoenix AZ when writing their living trust, it is not absolutely necessary to do so.
One of the primary reasons why individuals create living trusts is to help their beneficiaries avoid probate court. Probate refers to the process of dividing up a person’s estate, and it’s notorious for being lengthy and expensive. It’s common for families to hire a trusts lawyer Phoenix AZ can provide immediately upon discovering that they’ll have to go through probate.
Revocable Living Trusts
There are many different kinds of trusts but the most common one is the revocable living trust. When you establish a living trust, you can change the conditions and terms as you need to without having to provide a reason for doing so. It can also provide clarity about how you want your property distributed after your passing.
A revocable living trust establishes a fiduciary relationship between two parties:
- The person who places their assets into a trust, referred to as the trustor.
- The person responsible for managing that trust on behalf of the trustor, called the trustee.
Tax Advantages Provided By a Living Trust
If tax considerations are your primary reason for thinking about hiring a trusts attorney, consider the irrevocable trust. This takes the assets out of legal ownership by the trustor. Once the assets are inside the trust, they are no longer part of the trustor’s estate. This allows the heirs of the trust holdings to avoid probate.
Plan ahead with the help of a trusts lawyer Phoenix, AZ residents are proud to have assisting them. Avoiding probate is preferred for two main reasons:
- Probate can be costly for your heirs in terms of taxes, attorney fees, and time.
- During the probate process, your heirs will not have access to the assets they inherited.
For purposes of minimizing taxes and looking ahead to asset protection planning, a trusts lawyer Phoenix, AZ residents hire is invaluable. They can assist you in creating a living trust that suits your needs. No matter the size of your estate or the types of your assets that you own, a living trust can provide you peace of mind about how your assets will be handled in the future.
Limits of a Living Trust
Before creating a living trust, it’s prudent to know the benefits and the limitations of a trust. There are a few important matters that a living trust cannot address, but a will can. These issues include:
- Naming guardians for minor children;
- Naming financial guardians for the property of minor children;
- Leaving specific instructions on how to handle remaining debts and unpaid taxes; and
- Naming an executor for the estate.
For these reasons, many parents with young children (under the age of 18) choose to write up an official will instead of a living trust. While a living trust may be suitable for passing on assets to adult children, a will is more suitable when young children are involved.
If you have any concerns that a living trust might not be the right option for you, don’t hesitate to speak with a trusts lawyer Phoenix AZ has to offer about your choices. Each person’s estate needs are as unique as the estates themselves. Living trusts are a great choice for many families, but they are not perfect solutions for every case.
Living trusts are documents that may be amended and rewritten several times in a person’s life; many individuals find this beneficial. However, this constant upkeep could be a drawback for other individuals.
Furthermore, it is essential to keep in mind that the creation of a living trust does not guarantee that a decedent’s family will be able to avoid probate. As a Phoenix trusts lawyer might attest, when a living trust contains mistakes, beneficiaries will likely have to go through probate. This could jeopardize the individual’s entire trust. In fact, a trusts lawyer Phoenix AZ is proud to have serving the community might even suggest that the person should also draw up a simple will to serve as a backup for a living trust.
Trusts Lawyer Phoenix, AZ
An experienced trusts lawyer in Phoenix, AZ is essential in this process as it can seem overwhelming to approach this on your own. It is even more important to engage with a trusts lawyer Phoenix, AZ residents believe in because of the importance of properly drafted and legally valid documents both for state and federal estate planning purposes. Your trusts lawyer Phoenix AZ residents recommend can assist you with numerous estate planning goals while giving you a clear vision of the future.
A Phoenix trusts lawyer should be included in your estate planning so that you know that your plans are clearly documented. An attorney who endeavors to understand your individual goals can help you determine the strategies necessary to accomplish your future plans. Kamper Estrada LLP is happy to assist you. We can provide you with a trusts lawyer Phoenix AZ is proud to have working on their behalf and as part of the community.