Flagstaff Revocable Living Trust Lawyer
A Revocable Living Trust is a legal document that allows you (the grantor/ trustor) to transfer legal ownership of assets (bank accounts, investment accounts, personal property, and business ownership interests) during your lifetime into a trust. While ownership of your assets is transferred to the trust, as trustee you will still have complete control over the management of your assets until incapacitation or death. Additionally, a revocable living trust allows you to modify the terms of your trust at any time.
A Revocable Living Trust designates who will manage your assets (the trustee) should you become incapacitated or upon your death, the powers designated to the trustee, and who will receive the principal and/or income from the assets upon your death (the beneficiary). The process of creating a revocable living trust can be explained in detail by a Flagstaff revocable living trust lawyer.
This path of protection may be a good option for you if:
- you have an illness that may cause you to become incapacitated in the future;
- if you want to avoid probate;
- or want to keep your financial affairs private.
Revocable Living trusts are not part of the public record unless otherwise demanded by a trustee or beneficiary and approved by the court.
FAQs
Q: How Much Does a Revocable Living Trust Cost in Arizona?
A: A revocable living trust in Arizona can cost a couple of thousand dollars. It can generally range from $2,000 to $10,000, depending on the complexity of the trust. Other factors that can influence the cost of a living trust include the amount of assets involved, the value of the home, the amount of family members involved, and the fee structure of the attorney. Some attorneys charge a flat fee rate for living trusts and some attorneys will charge an hourly fee.
Q: Can You Set Up a Trust Without an Attorney in Arizona?
A: It is possible to set up a revocable living trust without the help of an attorney in Arizona. However, it is generally recommended that you engage the help of an attorney who has the qualified legal experience to help you. It is important that these documents are created correctly and that they are not susceptible to future litigation. For those who are adamant about setting up trusts or wills on their own, the Uniform Probate Code can be a good resource to utilize.
Q: How Do I Fund a Revocable Living Trust in Arizona?
A: To fund a revocable living trust in Arizona, you first need to create the trust document. The trust document should outline all of the details of the trust and how it will be executed. Items such as the names of the trustee and beneficiaries should be included.
Once the trust is created, it should be signed and notarized. The final step is to fund the trust by transferring any assets into the trust entity. The process can quickly become complex, and it often requires the help of an experienced trust attorney.
Q: What Is the Difference Between a Testamentary Will and a Revocable Living Trust in Arizona?
A: The difference between a Testamentary will (more commonly known as a last will and testament) , and a revocable living trust is that a testamentary will typically will cover property that is in your name until your death, and a revocable living trust will cover property that is transferred specifically into the trust.
TRUSTS |
WILLS |
|
When does it become effective? |
After it has been created and all assets in the trust are transferred to its name. |
Only after death. |
Does it give protection in case of incapacitation? |
Yes |
No |
Is there any tax benefit? |
Can possibly reduce estate taxes for your beneficiaries and can avoid some creditors. |
Are subject to any estate taxes and creditor debt. |
How are my assets managed? |
Only property expressly stated within a trust can be managed. |
All assets and property left in your name, or not expressly given to a beneficiary after death are manageable from a will. |
Can I appoint Guardianship? |
No | Yes |
Can it be amended? |
Yes, they can be amended or revised at any time, as long as the settlor (the person who created the trust) is alive and has mentally capacity. |
Yes, can be amended or revoked and remade as long as the testator (the person who a will is intended for) is alive and mentally capable to. |
Does it go through probate? |
No |
Yes |
Are my documents private? |
Yes |
No. |
A testamentary will usually does not take effect until you pass away, and there is no impact on your assets while you are alive. One benefit of revocable living trust is that they will also avoid the Arizona probate process. It is a good idea to contact a Flagstaff estate planning lawyer who can walk you through the differences in great detail.
Q: What is a Revocable Living Trust in Arizona?
A: Revocable living trusts are trusts that can be changed after the trust has been created. Irrevocable trusts typically cannot be changed once they have been created. A revocable living trust allows the granter to modify the trust with relative ease.
A revocable living trust is set up so that it can be modified as financial positions or personal situations change. The management and distribution of assets can be modified as needed. A revocable living trust is a great way for Arizona residents to help mitigate against the probate process.
ALREADY HAVE AN ESTATE PLAN?
An estate plan is an arrangement you always want to make sure is up to date. It may become important for you to amend your current estate plan to ensure it still reflects your life plan and wishes. We recommend reviewing your estate plan every 3-5 years to confirm your plan is still aligned with your intentions.
When you need to update your estate plan:
- A death in the family;
- If you want a new trustee for your trust or personal representative for your will;
- A birth in the family;
- A divorce;
- A new marriage;
- If you want to disinherit a child;
- If you want to add or change beneficiaries, including a charity;
- If one for more of your beneficiaries predeceased you;
- If any of your beneficiaries have special, or changes, need that you want your estate plan to address.
- If you received an inheritance or additional assets;
- If you want a new person to have power of attorney (healthcare or durable financial);
- New tax laws may have been enacted since you created your estate plan
Other big life events may trigger the need to amend or update your estate plan. Ultimately, you should consider amending or updating your estate plan whenever your relationships, goals or assets have changed. Additionally, documents may need to be updated as new tax laws are in place. At Glazer, Hammond & Smets, PLLC we can amend, restate, or draft new documents so your estate plan is up to date and in line with your desires.
With over 50 years of combined experience, we can help. Our firm possesses the dedication, determination, and compassion necessary to help you successfully plan for the future. Call us at (928) 213-5916 or Contact Us Here to speak with one of our experienced Flagstaff estate planning attorneys!
