Gilbert Trusts Attorney
Legal Guidance & Drafting of Valid Estate Trusts
A trust is a legal instrument that can transfer the assets of your estate to beneficiaries without going through the expensive and time-consuming probate process. Many purposes for trusts exist, with the most common being a revocable living trust for probate avoidance, in which you are the trustee. It is set up while you are alive and, since you are in complete control, allows you to make any changes that you see fit as time passes.
To understand the various types of trusts and what would be optimum for your needs, it is vital to consult with a knowledgeable lawyer. Hansen Law Office, PLLC is a dedicated estate planning firm that focuses on helping families prepare for the future. Our Gilbert trusts lawyer has in-depth knowledge in all aspects of forming valid trusts that will ensure that property and assets held in trust are handled properly.
Types of Trusts & How They Are Created
Two steps occur in the creation of any trust. The first step is to prepare and execute the trust and various estate planning documents that will fulfill your wishes. The second step involves transferring your assets into the trust.
Once your assets are put into the trust, they are held by the trust and subject to its instructions. The named trustee has control over carrying out those instructions for the benefit of the beneficiaries. The two basic categories of trusts are revocable (can be changed or terminated) or irrevocable (cannot be changed or terminated).
Various types of trusts can be established for different purposes. Examples include:
- Revocable living trust - Also called "inter vivos," this type of trust is created during your lifetime, and is changeable as your circumstances or desires change. Additionally, assets in this trust can avoid probate.
- Asset protection trust - This type of trust can shield assets from creditors. It is not permitted in the state of Arizona, but some legal alternatives exist.
- Charitable trust - This is a set of assets a donor designates for use by a charitable foundation. Creating a charitable trust is a great way to obtain tax breaks.
- Special needs trust - Otherwise known as a "supplemental needs trust," this type of trust allows a disabled beneficiary to use assets in the trust without losing their government benefits.
- Tax bypass trust - Also known as a "credit shelter trust," this trust allows you to pass assets to your beneficiaries without those assets being subjected to estate taxes.
- Totten trusts - Otherwise called a "Payable on Death" or POD account, this involves putting money in a bank account with specific instructions to pass to a named person or persons upon your passing.
- Pet trusts - This is a new type of trust that has been becoming more popular over the last few years. It allows you to set aside money to provide care for a pet or pets after your death.
Trusts have numerous advantages, including keeping your private affairs out of the public forum of a probate court, reducing estate taxes, giving you access to and allowing you to manage your estate, and providing protection from creditors.
For further assistance, read more here: https://www.azag.gov/sites/default/files/docs/seniors/life-care/2018/LCP_Packet_fillable_Livingwill.pdf.
Count on Hansen Law Office, PLLC for All of Your Trust Needs
Our firm will begin by sitting down with you to understand your goals, your financial situation, and your family/friend/charity relationships, all of which will be taken into consideration when creating an appropriate trust. We will advise you on all of the legal options available to you so that your needs are handled correctly.
Call us today at (480) 418-7878 to get started.
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