Chandler Trust Lawyers
Qualified Legal Team Providing Helpful Legal Guidance Throughout The Estate Planning Process
Depending on your unique financial and family circumstances, a will may not be sufficient when it comes to creating a comprehensive estate plan. Your estates may be more complicated, and the probate process could take longer to resolve than would be ideal. Additionally, perhaps you want to look after individuals in your family with special needs, or you want to have your estate plan benefit you and your beneficiaries while you are still alive.
There are several reasons to consider creating a trust as part of your estate plan. When pursuing these goals, it is highly recommended that you retain professional legal counsel from experienced attorneys familiar with trusts and related practice areas. At Metropolitan Law Group, we pride ourselves on providing in-depth and compassionate legal representation to our clients looking for optimal solutions for their estate and financial planning needs.
Our legal team has years of experience representing clients in complex estate plan legal matters and can lend legal assistance to you in creating a trust to safeguard your and your family’s interests. To learn more about our legal services and how we can help you and your loved ones create a trust that suits your needs, don’t hesitate to get in touch with our Chandler, AZ, law offices to schedule a free case review period in your free initial consultation, we will provide guidance to you so that you can determine the right path forward for your estate plan.
What Is A Trust?
Trusts are legal entities created to take on ownership of designated assets and property. Assets protected by a trust can be safeguarded against creditors and judgments, reduce estate taxes, and potentially avoid probate.
The property of the trust is managed by a trustee. The trustee could either be yourself, an entity of your choosing, or an individual you have appointed. The trustee’s responsibility is to manage the trust during your lifetime.
Upon your death, the assets within the trust can either continue under the trustee’s management or be transferred to designated beneficiaries according to the language of the trust. Certain types of trusts can also be created as a part of a last will and testament.
What Is Trust Administration?
Creating a trust enables the grantor (the individual who created the trust) to pass along assets from the trust both during the grantor’s life and after their death. Setting up a trust can help grantors pass assets to beneficiaries while avoiding probate and reducing or avoiding certain estate taxes.
Every trust is different, and some require more hands-on attention than others. The trustee is responsible for administering the trust and its assets according to the wishes of the grantor and for the benefit of the beneficiaries.
Administering a trust includes a wide range of responsibilities, including keeping track of the assets within the trust, distributing funds to beneficiaries, paying taxes, and dealing with any potential disputes.
The primary components of the trust administration process include the following:
- Verifying the validity of the trust.
- Managing the assets in the trust.
- Supplying assets to beneficiaries.
- Resolving disputes among beneficiaries.
What Are The Advantages Of Establishing A Trust?
There are several benefits to creating a valid trust. You get to specify what you would like your trust to be used for; for example, you could create a trust specifically for your child’s higher education, future medical treatments, or special needs.
Trusts can potentially minimize or eliminate gift tax and estate tax liabilities.
A well-managed trust can set aside money to help raise a child after you pass away. It can also establish rules that your beneficiaries must comply with to receive their inheritances.
If constructed correctly, the trust can avoid probate, thus speeding along the distribution of assets and protecting privacy. Remember, probate is a matter of public record.
Certain types of trusts can also manage your financial affairs if you ever become legally incapacitated due to a mental condition, serious illness, or physical injury.
What Are Different Types Of Trusts In Arizona?
There are several different types of trusts available to Arizona residents. To ensure that your trust follows Arizona law, it is recommended that you work with a trust lawyer in Chandler, AZ, to create your trust.
Common types of trusts include the following:
- Charitable Trusts: A charitable trust, such as a charitable remainder trust, donates some or all trust assets to a named charitable organization. Charitable remainder trusts can help reduce estate taxes on the trust creator’s beneficiaries.
- Generation-skipping trust: A generation-skipping trust preserves trust assets for the trust creator’s grandchildren instead of their children. This can be a useful type of trust when the trust creator does not believe in the judgment of their children but still wants to look after their youngest heirs.
- Irrevocable life insurance trust: These trusts determine who gets to claim the benefits from the trust creator’s life insurance policy once they have passed away.
- Irrevocable trust: This type of trust is similar to a revocable trust in many ways. However, unlike a revocable trust, irrevocable trusts cannot be altered or revoked once they have been created.
- Marital trust: These types of trusts are irrevocable trusts designed to protect a married couple’s assets and shield some of those assets from tax burdens should one spouse die before the other.
- Revocable trust or living trust: Revocable trusts, also known as living trusts, are by far the most common type of trust in Arizona. These are usually created by the head of the estate during their lifetime and can benefit themselves and any named beneficiary while they are still alive. Additionally, the trust creator has the authority to alter or revoke the living trust at any time. The trust creator often serves as the initial trustee. Upon death, a successor trustee takes over those responsibilities.
- Special needs trust: This type of trust can be useful if a family member is disabled or receiving government benefits for their disability. In many cases where an individual receives a large gift or inheritance, it may lead them to being disqualified from certain government benefits. With a special needs trust, your disabled loved one can still reap the benefits of certain government programs while also receiving trust assets.
- Spendthrift trusts: This type of trust prevents beneficiaries from selling or pledging interests in the trust. Trust assets are protected from the beneficiaries’ creditors until they are distributed to the beneficiaries. Spendthrift trusts are useful for beneficiaries who have money problems.
- Testamentary trust: Testamentary trusts are usually part of the trust creator’s will. A testamentary trust that does not go into effect until the trust master’s death.
If you have any questions about what type of trust is most suitable for you and your needs, talk to the Chandler law office. You may schedule a free initial consultation at any time with an estate planning attorney from our law firm.
What Is The Difference Between A Revocable And An Irrevocable Trust?
Revocable trusts (also known as living trusts) can be modified or terminated at any time during the trust creator’s lifetime. This means that assets can be added to or removed from the trust whenever the trust master wishes.
Irrevocable trusts, on the other hand, cannot be altered or revoked without the express permission of all beneficiaries.
Contact a trust attorney at our estate planning law firm to discuss what type of trust is most suitable for you and your family’s needs.
What Are The Duties Of A Trustee In Chandler, AZ?
When a trust is created, the trust grantor designates a trustee whose role shall be to care for and maintain the trust. This role involves several actions and responsibilities. Among those responsibilities is the requirement to make important legal, financial, and administrative decisions to protect the trust assets.
Essential duties of a trustee in trust administration include the following:
- Updating asset documents.
- Identifying assets and property.
- Determining the value of assets.
- Filing tax returns for the trust.
- Distributing assets to the trust beneficiaries.
- Resolving disputes Involving beneficiaries.
Trust administration can be a complicated process, one that is more easily handled by an experienced trust attorney. For legal guidance, contact a trust lawyer at our law firm.
What Should You Consider When Selecting A Trustee?
Trustees have a huge responsibility to the creators of the trust and to the trust beneficiaries. Because of this, it is essential to choose your trustee wisely.
A trustee must be mentally capable of understanding the legal ramifications of their responsibilities and capable of performing these legal duties. While it is recommended that you select a trustee who is honest and trustworthy, you also want your trustee to be someone with experience handling finances dependably.
Do Trusts Avoid The Probate Process?
In estate law, assets are transferred to other people by one of two different methods. They can be transferred by court order, which is part of the probate process, or they can be transferred from one person or entity to another by private contract.
When you create a trust, properly fund it, and administer it according to the law, that trust is a private contract usually capable of avoiding probate. This can make the distribution of assets cheaper, faster, and easier.
For more information on avoiding the probate process, please contact our estate planning law firm to schedule your free initial consultation today.
Can Trusts Protect Assets From Creditors?
By putting assets and personal property into a trust, you can help preserve and protect those assets against the unexpected. For example, you can protect your assets from personal injury settlements, divorce settlements, creditors, and more.
To develop an asset protection strategy, we encourage you to contact our law firm for legal assistance. Our trust attorneys offer free case evaluations to prospective new clients interested in retaining our legal services.
What Are The Differences Between Wills And Trusts?
A last will and testament establishes your final wishes and how you would like your assets to be distributed in the event of your death. When you die, your estate goes through the probate process, wherein the executor settles debts, assigns values to estate assets, locates beneficiaries, distributes assets to named beneficiaries, and eventually closes the estate.
Unlike wills, trusts are not subject to the probate process. If you elect to pass your assets along to loved ones after your death via a trust instead of a will, your beneficiaries may gain access to your estate faster and with less expense.
Do You Need A Trust If You Already Have A Will?
Ideally speaking, every adult over age 18 in Arizona would have a last will and testament. Wills are the foundation on which comprehensive estate plans are built. If you do not yet have a will, there’s no better time than now to begin drafting your will with the help of our estate planning attorneys.
If you already have a will, you may still benefit from also having a trust. However, this varies depending on your unique circumstances. There are several benefits to creating trusts, including avoiding costly probate proceedings, tax planning, and more legal options for handling your assets after death. Additionally, some trusts allow the trust creator to enjoy the benefits of the trust while they are still alive, which cannot be said about a will.
To determine whether you would benefit from creating a trust and adding it to your estate plan, please contact our trust attorneys for a free case review.
When To Make Changes To A Trust?
Trusts, like all estate planning documents, should be revised and amended from time to time to keep things up to date with changing life circumstances.
Reasons or changes in circumstances that are good cause for modifying an existing trust include the following:
- Marriage, divorce, or remarriage.
- The birth of a newborn child.
- Death of a beneficiary.
- Significant changes to your financial situation.
- A dependent develops special needs.
Generally speaking, you can change a trust for any reason. However, there are potential consequences to updating trusts, so it is wise to only do so when it is necessary. Contact our Chandler law office for more information.
What Are The Perceived Disadvantages Of Trusts?
Just as there are several benefits to creating trusts in Chandler, Arizona, there are some perceived disadvantages as well. Some people dislike trusts because they believe they take too much control over their property, valuables, and assets. Other people dislike trust because, depending on the type of trust created, they are not easily revoked.
All trusts are complicated legal tools that require careful record-keeping, steadfast management, and a comprehensive understanding of estate laws. This can be daunting for some people. Additionally, many trusts have rigid taxable year schedules and do not automatically revoke upon divorce. And sometimes, certain assets are difficult to contribute to a trust.
The benefits of trusts far outweigh the downsides. However, that does not mean that trusts are right for every estate plan. For more information on trusts and whether they are the right estate planning tool for your goals, please contact our estate planning lawyers today.
What Are Common Reasons To Dispute A Trust?
The trustee is expected to administer the trust for the benefit and interests of the trust’s beneficiaries. When there are more than two beneficiaries, the trustee is usually expected to remain impartial. The trustee must act in a timely manner and be reasonable at all times while also keeping thorough records. These many responsibilities sometimes give rise to disputes and disagreements.
Common types of trust disputes include the following:
- Accusations that the creation of the trust was affected by fraud or undue influence.
- Concern that the trust creator was not of sound mind when drafting the trust.
- The belief that the trust was written under duress.
- The signature on the trust was forged.
- Disputes on whether the trustee has provided a full accounting of the trust’s assets, income, and disbursements.
- Disagreements on whether the trustee has prudently invested and administered the trust assets.
- Allegations that the trustee has advanced the interests of certain beneficiaries at the cost of others.
- Whether certain assets are subject to creditor claims.
If there is a dispute involving a trust, it is highly recommended that you contact experienced estate planning lawyers for legal representation.
Schedule A Free Case Evaluation With An Experienced Estate Planning Attorney At Our Law Firm Today
Contact a trust attorney in Chandler, AZ, to discuss your estate plan and determine what type of trust is most well-suited to your estate planning needs. Our law firm has years of experience representing clients in complex estate law matters, and we will be proud to lend legal assistance to you during this time.
To learn more about our legal services, don’t hesitate to contact our offices to schedule your free, no-obligation case evaluation today with an estate planning attorney. You may reach us at 866-902-6148.