TRUST LAW IN ARIZONA
People set up a trust in order to provide for those of their choosing in a way of their choosing — while they’re still alive or after they have passed. There are different kinds of trusts. Trusts can be intervivos or testamentary in nature. An intervivos trust is set up and funded during the life time of the person setting up the trust. A testamentary trust is a trust that is established but not funded during the lifetime of the person establishing the trust. Trusts can also be revocable or irrevocable. A revocable trust is one that can be changed during the lifetime of the person setting up the trust. An irrevocable trust is as the name indicates– one that cannot be changed.
Generation Skipping Trust
A generation skipping trust is a great tool to use to reduce or eliminate estate and inheritance taxes.
Special Needs Trust
The purpose of setting up a trust for a beneficiary with special needs, is to ensure that person will continue to be eligible for government services and care, such as disability income or medicaid. If for example, you had a child with Down’s Syndrome who needed an in-home attendant, it’s possible that only partial services would be provided through government programs — if a trust had not been established. By setting up a trust, you can give the one needing help “extras” in the form of travel, furniture or even education and utilities as long as you do not pay for food or housing. (There are various exceptions and this is something to discuss with a qualified estate attorney such as Wayne Gardner.)
A living trust is, as its name suggests, a trust distributed while you’re still living– if that’s what you decide to do. This can be changed at any time up until, of course, the time of your death. However, all changes need to be done legally through an attorney.
A trust can be done for a pet or for an inanimate object, such as your family crypt or a gravestone. You can ensure there are funds for the care of your beloved pets and the trust would include the distribution of any remaining funds after the death of the animal.
Protection from Creditors
Trust assets are able to be protected from creditors of the beneficiaries of the trusts. There is a way to ensure double layers of protection with a clause called a “spendthrift trust provision.” It’s not just for overly-indulgent beneficiaries, but it is designed to protect the trust assets from being seized by the government or other means.There are some exclusions, and this is again, something to discuss in an initial private consultation. Laws for these protections vary by state. Contact Wayne Gardner in the state of Arizona to discuss what he can do to ensure the strongest layer of protection for you.
Wayne Gardner, Attorney
Buntrock & Gardner Law, PLLC
Mesa, AZ 85203