Arizona Trusts Lawyer

Trusts are a powerful estate planning tool in Arizona. A well-structured trust offers many benefits, such as asset protection, control over wealth distribution, estate tax savings, and providing for vulnerable loved ones, such as children with special needs. Trusts can also help you avoid probate, which saves time, money, and the potential for disputes.

Deciding which type of trust best fits your circumstances involves taking a close look at your financial situation and goals. An Arizona trust attorney at Pennington Law, PLLC can help you develop a comprehensive estate plan that utilizes trusts to protect your legacy. Contact us today for a free consultation.

Why Choose Our Arizona Trust Lawyers for Your Estate Planning Needs?

Protecting assets with a trust can involve complex legal issues and considerations. Getting the right guidance from a skilled lawyer can make decision-making easier and make the entire estate planning process run smoothly. The experienced trust lawyers from Pennington Law, PLLC are established professionals in estate planning and wealth management. Clients choose us because:

• We have many years of experience guiding clients from all backgrounds.
• Our attorneys work diligently to explain available options for securing and managing your wealth.
• Our law firm includes a wealth management and growth practice with financial professionals who can help you identify optimal strategies for future planning and asset protection.

Pennington Law, PLLC is a top-rated law firm with numerous accolades, including the prestigious AV-Preeminent rating and Platinum Client Champion Award from Martindale-Hubble. Reach out today to learn how we can put our experience to work for you.

What Is a Trust?

A trust is a legal structure in which an individual or entity (called a trustee) holds, manages, and invests assets on behalf of one or more beneficiaries. The person creating the trust (the grantor) selects the party(s) who will serve as trustee(s), names one or more beneficiaries, and determines how the trustee must manage the funds in the trust document.

Types of Trusts in Arizona

Some of the most common types of trusts in Arizona include:

• Irrevocable trust – In an irrevocable trust, assets are permanently placed in the trust and cannot be removed. Irrevocable trusts offer critical legal benefits, such as reducing the value of the grantor’s estate to qualify for government benefits and protecting assets from creditors.
• Living trust – Also called a revocable trust, a person may create a living trust to manage and benefit from their assets during their lifetime. After their death, the trust may either continue holding the assets for the benefit of successor beneficiaries or terminate and distribute them to the grantor’s designated beneficiaries. The grantor can change the trust’s terms or dissolve the trust at any time.
• Medicaid trust – A person anticipating the need for public benefits to afford long-term care may establish a Medicaid trust to remove assets from their estate to meet means-tested thresholds set by the government.
• Special needs trust – A family with a disabled loved one may create a special needs trust to help the beneficiary qualify for Medicaid or Supplemental Security Income (SSI) or to provide them with an additional source of income to help pay for expenses not covered by government benefits.
• Charitable trust – An individual may establish a charitable trust to facilitate the donation of a portion of their estate to philanthropic causes. Charitable trusts can take advantage of tax benefits that may mitigate financial liabilities for heirs upon the individual’s death.
• Spendthrift trust – A spendthrift trust allows you to set aside funds to benefit a loved one but protect them from squandering the money due to irresponsible spending habits or other personal problems like addiction. The trustee distributes funds to the beneficiary according to the terms of the trust.
• Testamentary trust – A person may create a testamentary trust through their will, which outlines the terms of the trust and directs the distribution of assets to beneficiaries.

Benefits of Establishing a Trust

Trusts offer individuals and families numerous benefits, such as:

• Asset protection
• Facilitating the distribution of inheritance while bypassing the probate process
• Confidentiality
• Reducing estate values to qualify for government benefits
• Mitigating taxes
• Protecting a family business
• Managing family wealth and providing stable income for succeeding generations

Consulting the experienced team at Pennington Law, PLLC can ensure you make decisions that address your unique situation and individual needs.

Common Misconceptions About Trusts

Estate planning is important for everyone, even if you have a small estate. However, certain myths about establishing trusts may prevent people from taking the most effective steps to protect their finances and other assets. Common misconceptions about trusts include:

• Only the wealthy use trusts – Individuals and families from all backgrounds can benefit from using trusts as part of their estate or financial plan.
• You can’t change or revoke a trust – Trusts can have narrow or broad terms with varying degrees of flexibility. An experienced trust attorney can advise on the type of trust that best suits your situation.
• Trusts avoid taxes – When a trust’s assets earn income, that income becomes taxable. Depending on the trust’s structure, various parties may need to pay that tax. However, trusts can also help individuals and families manage or mitigate various taxes.

Talking with an estate planning attorney can help clear up any confusion and develop an estate planning strategy that complies with Arizona law.

How to Set Up a Trust

A grantor creates a trust by drafting and executing a trust document, which names the trustee(s) and any successor trustees, identifies beneficiaries, and outlines the terms by which the trustee must manage the trust. The grantor also must fund the trust by transferring assets into the trust’s name, such as transferring funds to the trust’s bank account or retitling property.

Choosing the Right Trustee

Selecting a trustee is one of the most important decisions you make when establishing your trust. Your trustee will be responsible for managing the trust and its assets, so you need someone reliable and capable of managing the financial and legal responsibilities that come with trust administration in Arizona. Potential trustees could include family members, friends, and professional advisors such as lawyers, accountants, or a bank or trust company.

Frequently Asked Questions

What does an Arizona trust lawyer do?

An Arizona trust attorney assists clients with the types of trusts available to protect their assets, complement their estate plan, and maintain eligibility for crucial public benefits as they age. An experienced attorney can explain the trust structures most suitable for the client’s personal financial situation and estate planning goals, draft the trust documents, and make sure the trust complies with state and federal law.

What are the main benefits of setting up a trust in Arizona?

Individuals can enjoy several benefits of establishing a trust in Arizona. First, trust assets do not have to go through probate, allowing for faster transfer to beneficiaries once the trust-maker passes away. Depending on the type of trust set up (revocable vs. irrevocable), a trust-maker may be able to protect assets from certain creditor claims and lawsuits. A trust can also provide long-term planning for Medicaid eligibility or set aside funds for disabled family members. In short, trusts are a legal and customizable way to make your assets work optimally for you.

How do I choose the right trustee for my Arizona trust?

Selecting the right trustee to manage your assets is a crucial step when setting up a trust. An experienced trust attorney can review the important qualities to consider before you choose a trustee for your trust in Arizona. Considerations may include the person’s age, willingness to serve, understanding of their fiduciary duties, and ability to manage your family’s dynamics ethically.

What are the main benefits of placing my home in a trust in Arizona?

Placing your home in certain types of Arizona trusts may help with probate avoidance, provide asset protection from creditors and legal claims, maintain privacy, and become a part of your overall estate planning strategy. While Arizona does not have estate or gift taxes, careful estate planning can potentially minimize federal tax liabilities, allowing a smooth transfer of real estate to your heirs after your death.

The Importance of Updating and Maintaining Your Trust

Establishing a trust does not mean the end for a grantor or beneficiary. Instead, the trustee bears responsibility for trust administration, including managing and investing trust assets and distributing money to beneficiaries as required or allowed by the trust document. For revocable trusts, grantors and beneficiaries should regularly review and update the trust document to reflect personal, familial, financial, or legal changes.

Need Legal Advice From an Experienced AZ Trust Lawyer? Contact Us Now

Ready to take charge of your future through the power of trusts? Call or contact Pennington Law, PLLC today for a free consultation with our knowledgeable trust and estate lawyers.