WHY YOU SHOULD UTILIZE A TRUST IN ESTATE PLANNING IN ARIZONA

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Estate planning is essential as it ensures that your wishes regarding your assets are met after your death. It puts together a detailed plan of managing your investments, naming the people and organizations you would like to receive the things you own after you die.

You may have heard about trusts in estate planning but don’t know how they work or what they entail. Unfortunately, many people misunderstand trust, so it is crucial to educate yourself more. This guide discusses beliefs and why you should utilize one in estate planning.

What is trust?

A trust is a legal vehicle commonly used in estate planning. It refers to a legal partnership between three parties, including;

  • The truster- is a person who establishes trust.
  • Trustees- people responsible for managing the trust.
  • Beneficiaries- people who benefit from the trust.

More people may be involved in a trust, depending on the situation’s complexity. When setting up a trust, the truster places some assets or funds into a trust known as the trust fund.

Then the trustees manage the trust fund according to the legally binding rules and conditions for the sake of the beneficiaries. The trust deed contains the management in writing, binding on the trustees.

A trust is a legal document allowing trustee (s) to manage your assets upon your death. With the help of trust estate lawyers in Arizona, you can establish a trust to ensure all your legal needs are in order.

Why utilize a trust?

Note that you can establish trust at different points in life or death upon the provisions of a will. The primary reason for utilizing a trust for estate planning is to protect the beneficiaries and assets. Some of the purposes of faith include:

  • Provide funding for a beneficiary for specific reasons, for instance, education.
  • Minimize inheritance taxes to allow your heirs to make the most of your estate.
  • Facilitate funds management for someone who may need additional help, for instance, a disabled person or a beneficiary who cannot manage assets alone.
  • Protect critical family assets for future generations.
  • Provide for children or spouses from previous relationships.
  • Protect assets from the consequences of a relationship breakdown.

Implications of setting up a trust

Similar to establishing a company, setting up a trust has some implications. Certain things are necessary as long as the trust exists. There will most likely be several related accounts when setting up a trust, and tax must be paid. According to the trust deed and general trust laws, the trustees are legally mandated to manage the trust.

Note that you lose ownership when you set up a trust and pass your assets on to the trustees. This is because the investments are now the legal property of the trustees. Thankfully, you can take steps to ensure the necessary control over the trust fund is subject to the trust deed terms.

THE WRAP-UP

Trust is valuable in estate planning, and you can establish one with the legal guidance of a trust estate lawyer.

Read Also: What Does A Family Law Attorney Do For You That You Can’t Do On Your Own?

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