A lot of people question whether they should consider Arizona living trusts when establishing their estate plan. The only way to really answer this is by saying that it depends on the size of the estate, and on the specific planning goals that the person wants to accomplish. But, just generally speaking, Arizona living trusts do have several advantages that are worth mentioning. We will discuss three of those advantages here.
Arizona living trusts allow you to avoid probate.
Unlike property left by a will, property in a living trust does not pass through probate. Rather, it passes to the named beneficiaries immediately upon the death of the trustor, which can save both time and money to the estate. The idea is that you can establish the trust for whatever use you want during your life, and immediately upon your death, the remainder of the trust passes to the individuals you selected as beneficiaries – without going through the probate process.
Arizona living trusts allow you to make conditional gifts.
Perhaps the best way to leave a conditional gift after you are gone is with a trust. For instance, if you wanted to leave your nephew a gift, conditioned upon his graduating college, a trust would allow you to accomplish this. Or, if you wanted to give your daughter an annual gift every year until she turned 25, and then a larger gift on her 25th birthday, a trust would also allow you to accomplish this. Arizona living trusts are very effective at helping you accomplish unique gifting strategies.
Arizona living trusts can protect your finances in the event of unforeseen medical emergencies.
With Arizona living trusts, you can create a financial plan that begins now, and then continues after you are deceased. This plan can remain in effect even if you someday lose the capacity to handle your financial affairs personally. This means that the person who you appoint to act as trustee will see to it that the terms and conditions of your trust will remain in effect in the unfortunate event that you can no longer manage your personal finances.
While Arizona living trusts do have their place in a solid estate plan, there are also a variety of other tools and strategies that you ought to also consider. The best way to evaluate all of your options is by discussing your situation with a qualified attorney.
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