Many Arizonans believe trusts are reserved for the rich, useless if you don’t have millions to pass on. Some may have even heard how easy it is make a holographic will in Arizona to pass on what few special items they want to pass on–why hire an attorney when you can write up a simple list and sign it? See A.R.S. 14-2503, 2513 (requirements for holographic wills and separate lists). But an effective trust does more than just clarify who gets your vintage T-shirts and trusts are not just for trust fund babies.
Avoiding Probate
The biggest reason for a personal or family trust is to spare your family the drudgery of probate when you pass. Probate is an expensive and time consuming process where a court oversees a your “personal representative” as they divvy up your stuff when you die. Although some limited assets can pass to statutory heirs without probate, most wills require it–whether written on a napkin or an attorney’s best stationary. A trust bypasses probate by identifying one or more “Trustees” to hold technical ownership of your property and who can be TRUSTED to follow your wishes after you die–without court intervention or oversight. What’s more, you can still update a separate list of specific items you want to grant once you have a trust in place–meaning those vintage Ts don’t have to go to your brother if he pisses you off.
Planning for the Worst
The Trustees identified can serve as your nomination for the person to care for you or your bank accounts if you become incapacitated for any reason (e.g., bang your head skydiving with your son for graduation). Along with appropriate powers of attorney and a living will, a trust can provide essential guidance to courts if they have to determine who takes care of you.
Addressing Blended Families
STP law understands that not all families look alike, and sometimes two families come together to create something special. A trust can help each side of partnership know that their property will pass exactly as they wish, with oversight where needed. Different families may benefit from a real estate trust to address passing the family home and its contents to a mixed family, and some partners may wish to purchase life insurance and retain the ability to direct a trustee on how to disburse it up to the moment of death.
In short, a simple trust can provide substantial benefits to all kinds of individuals and families with diverse needs. Other estate planning documents can supplement your trust to ensure your wishes are followed after you shuffle off this mortal coil. Get in touch today to discuss your needs.