Phoenix Living Trust: Who is Involved?

A Phoenix living trust is an important part of estate planning. Anyone who has property of any kind to pass on to another party in the event of the property owner’s passing can greatly benefit by establishing a trust. Learn who is involved in the process and what property to consider covering with a Phoenix living trust.

Trustor

When it comes to Phoenix living trust documents, the trustor is the party who initiates the document. This person is the party who holds the assets and who is passing them to the heirs, or beneficiaries.

Trustee

A trustee is the person who is responsible for seeing out that the terms of the Phoenix living trust are carried out. The trustee has no benefit from the estate.

Beneficiaries

A beneficiary is the party who receives property from the trustor. There can be one or many beneficiaries, and a beneficiary does not necessarily have to be a person; beneficiaries can also be charities or organizations.

Property Listed

Deciding what property to cover by a Phoenix living trust is a huge part of the process since it is essentially the reason one would have a trust to begin with. Commonly covered items in a Phoenix living trust include those with monetary or sentimental value. When it comes to assets with financial value, most people list bank accounts, cash, retirement savings accounts, homes, cars, and jewelry under a Phoenix living trust. Sentimental assets are not as commonly covered under trusts, most people include them in wills and that is enough, but in some circumstances people list things like furniture, clothing, photo albums, and keepsakes under a trust.

Protection Your Estate Through a Phoenix Living Trust

Establishing a Phoenix living trust is a very smart move to protect your estate. If you die without an established plan for your assets, your estate will enter the probate court. During this process, it will be up to a judge to decide how your wealth is divided up – this will undoubtedly cost your family time and money in court fees. Without a trust, your assets are also subject to debt collection and a higher tax rate. It is entirely possible that your entire estate will be dissolved into court fees, taxes, settlements against you, and debt collection without your heirs seeing any of it. With a Phoenix living trust, your assets are protected and will not be subjected to collection of any kind and will not be made public record.

Learn more about Phoenix Living Trusts with Scott Schoeller -

480.266.4025

Arizona Location
3055 E Waterman Way
Gilbert, AZ 85297

619.542.7771

California Location
California Trust
4025 Camino Del Rio South
Suite 300
San Diego, CA 92108

What You Need to Cover in Your Phoenix Will and Phoenix Trust

Estate planning may go beyond a simple distribution of assets when you pass. Discover what areas you need to cover when considering a Phoenix will or Phoenix trust program.

Phoenix Will and Phoenix Trust Assets

What usually prompts the instigation of a Phoenix will or Phoenix trust is having certain assets you want to protect. The most common assets to assign in your Phoenix trust and Phoenix will are those which have a certain level of value – by value that could mean either monetary value or sentimental value. Common monetary items include cash, savings bonds and retirement accounts, stock, property, jewelry, and vehicles. Items with sentimental value that people often protect with Phoenix will or Phoenix trust accounts include photo albums, furniture, and clothing.

How to Carry Out Your Wishes with a Phoenix Will or Phoenix Trust

In addition to protecting assets, many people also establish Phoenix will and Phoenix trust documents to carry out certain wishes. The most commonly addressed situation in a Phoenix will is who will be responsible for your children should you pass before they reach legal adult age. This part of your Phoenix will is perhaps the most important because failing to plan could leave your children without a guardian, in which case it would be up to the state to appoint a guardian. Phoenix trust programs are often instituted to control the way your assets are handled once you pass, instead of just who they go to. A Phoenix trust allows you to instate certain clauses like only making money available for education or living expenses.

Choosing Between a Phoenix Will and Phoenix Trust

Now that you know what these programs are for, it’s time to decide between a Phoenix will and Phoenix trust. Both programs operate essentially the same way, but deciding on which one depends on what you have to protect and why. When it comes to the transfer of money or belongings and you have no further wishes except that the right people get what they are entitled too, a Phoenix will is likely your best option. When it comes to a more complex situation, a Phoenix trust can give you the option to make your final wishes as specific as you’d like – for instance, if you have a need to protect your money from debt collectors or have multiple beneficiaries, a trust is likely the best option for you.

Phoenix Will and Phoenix Trust for Retirement Accounts

Saving for your future is a smart way to ensure your retirement will be properly funded in addition to the use of social security income, or in place of SSI. If you do not plan ahead and establish a Phoenix will or Phoenix trust, your loved ones may end up losing their inheritance that is left over in your retirement accounts! Find out why it is so important to include your retirement accounts in your estate planning.

Planning for Retirement Accounts in a Phoenix Will or Phoenix Trust

The most common types of retirement accounts used in this country are known as an Individual Retirement Account (IRA) and 401k. These two retirement savings programs are very similar yet quite different in the way they are structured. IRAs are commonly held by the individual and the account is not connected to a company or place of employment – because of this, most people who open IRAs do so because they are self-employed, are not offered benefits at work, are small business owners, or the 401k offered through their employer has too many contingencies. A 401k is a type of savings program offered through companies to their employees in which the employer usually matches some portion of the deposit. Both accounts come with big tax breaks, and both have minimum retirement ages. If the rules of these accounts are not followed, it could mean big fines for you and your beneficiaries.

When a Phoenix Will is Needed

There are my different circumstances when a Phoenix will needs to come into play. A will is a legal document that outlines your wishes in regards to the distribution of your property. The purpose of a Phoenix will is to maximize the probability that your estate plans will be carried correctly out when you pass. In the case of retirement accounts, it is essential to name who will get the funds from these accounts should you pass before they are spent. If you fail to outline your plan, the money may not reach your heirs at all.

Naming a Phoenix Trust as a Beneficiary

A Phoenix trust program offers you options beyond just designating who gets the money in your retirement accounts. This type of documentation allows you to not just name who gets the money out of your retirement accounts, but how it is spent. Phoenix trust programs are often a part of the existing Phoenix will and can protect your retirement accounts from debt collectors and settlements against you.

Phoenix Trust: Smart Financial Planning

A Phoenix trust is a type of account which allows you to designate who your money and belongings go to and how they are spent. This may involve a simple plan such as holding inheritance for a young child until they reach legal age or your plan may be a lot more complicated than that. Trusts are commonly used to control how money is spent by your heirs – for example, if you have an adult child and you wish your money to be held until they complete college or get married, a trust allows you to control that. Learn more below about how a Phoenix trust could work for you.

When You Need a Phoenix Trust

You might be thinking about your future and thinking about making a plan, but do not make the mistake of waiting until it is too late! Having a set plan of action through a Phoenix will or establishing a trust is essential to your wealth and assets. Many people elect to establish a Phoenix trust or will when they have something of value to pass down. Most of the time, if you have what is commonly called “family money” that has been passed down from your relatives or you earn a significant amount from income, your spouse and/or children should protected as soon as they enter your life. If you establish new savings accounts or retirement account like an IRA or 401K, a trust or will should be established at the same time as the account. Other circumstances which prompt the establishment of a Phoenix trust or will may include lottery winnings, settlements, or inheritance due to the passing of a loved one.

How Thinking Ahead Benefits Your Family

Should you pass without establishing a Phoenix will or trust, you could be putting your family in a very bad financial situation. Even in the best case scenario, if you do not have a clear beneficiary to your accounts, assets, and funds as outlined in Phoenix will or trust your estate will go into the hands of the probate court. When your estate is taken over by the probate court, all of your accounts and assets are frozen until a judge makes a ruling about how your property is divided up between your heirs. Your family will likely lose time in the process and end up with court fees. Additionally, if there is money to be inherited by no trust, the IRS may tax your accounts as earned income for your heirs.

Naming a Beneficiary on Your Phoenix Will

Naming a beneficiary through a Phoenix will is very important. When you name a beneficiary, you are saving your family time and money from having to let the court determine how your assets are split up for you. Failing to designate an heir could leave your assets in jeopardy of being overtaxed or even seized by creditors.

Taking Accounts Into Consideration

Savings and Checking Accounts

Most likely, you have a checking and savings account with a banking institution that can be accessed at any point without contingencies. If your Phoenix beneficiary is not a co-signer on the account, they will not have access to the accounts – that’s why it’s very important to include these in your will.

Retirement Accounts

Retirement accounts are a particularly tricky type of account to transfer. Should you die before your Phoenix IRA or 401K is spent, a spouse beneficiary will be able to establish a new account but non-spouse beneficiaries won’t have it so easy. A non-spouse beneficiary will have to start making minimum withdraws within the first year, and minimum withdraws every year after that – that means the IRS can tax the account as income for your beneficiary.

Assets

Assets with value are often overlooked by they need to be included into your estate just as money would. Important assets include houses, cars, jewelry etc. These types of assets are often treated just like cash and are considered gifts when transferred.

When You Need a Trust

A Phoenix trust is a type of program that allows you to control how your money is spent and assets are handled when you die. This may seem like an awfully controlling move to make considering you are likely giving the money to loved ones, but a trust can be beneficial to everyone involved. Naming a trust as a beneficiary to your estate will allow you to do many different important things. Mainly, a trust comes with big tax breaks to your beneficiaries as the money the inherit will not be taxed as earned income – this protects them from losing a large part of the money to the IRS as well as keeps them from being disqualified for income based programs like Medicaid and SSI. A trust will also protect your assets from collection by creditors and settlements.

Another attractive benefit of trusts is that you are able to control where your money goes and what it is spent on. In many cases, a Phoenix trust is established instead of a Phoenix will program when the beneficiary is a frivolous spender and is at risk for splurging – which is really common for young heirs. With a trust you can actually make it so the money goes towards living expenses or education; you can also designate that the funds are to be held until a certain or until certain conditions are met, such as a marriage or birth of a child, etc. A Phoenix will is likely the better option if the circumstances are not complicated or if there is only a spouse, or children from your current marriage named as heirs.

Phoenix Will and Trust Common Questions

As we build our families and build our wealth, the stakes about the future get higher and higher. When you have a combination of assets to lose and loved ones you want taken care of in the event of your death, you are going to have to do some planning to make sure things go as they should.

Who is Involved in Phoenix Will & Trust Estate Planning?

Trustor

The trustor is the party who establishes the will or trust.

Trustee

A trustee is the party who is in charge of the accounts and making sure your wishes are carried out as planned.

Beneficiary or Beneficiaries

The beneficiary or beneficiaries are the parties who inherit your assets.

What Happens When You Don’t Plan?

This is a big problem that many Phoenix families of the deceased have to deal with in this country. If you fail to properly plan ahead of time, you are forcing your loved ones left behind to deal with it for you – and they will not have it as easy as you would have if you did it in advance. When assets are left up in the air when someone dies, their estate is processed by the probate court. The court will then decide who gets what.

Not many people are comfortable with the idea of living their assets and money they spent their whole life working for up to the decision of a judge. The immediate downside to leaving it up to the court system is that your family will owe legal fees and spend a lot more time in court waiting than you might expect. Do you owe Phoenix creditors or towards a settlement? Then you can count on them getting your family’s money when you die if you have not planned correctly.

Should I Use a Trust or Will? Or Both?

A Phoenix will is designed to help you designate how your assets are divided up in the event of your death. Usually a will is fairly simple and doesn’t require any qualifications or contingencies for any parties. A trust is like taking the will a step further and not just planning how your assets are divided up and who they will go to, but also how they are used and distributed. When you set up a trust, you can call all the shots about how your assets or divided or just simply protect your money from collection agents. Trusts are often used when there are beneficiary child from a previous marriage, or multiple beneficiaries. People also designate trusts as beneficiaries when they want their money to spent on something specific life living expenses or education.

For more information on Phoenix will and trust, call 480.266.4025.

Arizona Location
3055 E Waterman Way
Gilbert, AZ 85297

California Location
California Trust
4025 Camino Del Rio South
Suite 300
San Diego, CA 92108

Phoenix Will and Trust Startup Guide

Since we never know when the day will come that we pass away, putting off Arizona estate planning is not a good idea. Should you procrastinate in this area of financial planning, it could mean major consequences for the family you leave behind. Learn about the basics of Phoenix will and trusts to get on your way to smart planning today.

What is a Will?

A Phoenix will is fairly simple – it is a legal document that determines who gets what assets in the event of your death. You can design your will to include many different beneficiaries and divide your belongings however you see fit. This type of estate planning is pretty basic and very common. If you do not have a will, it may be very difficult to determine how your estate should be distributed, especially if you have been married more than once or have children.

What is a Trust?

A trust is a type of agreement that goes into documentation that outlines the way you want your property, or estate, to be handled in the event of your death. Sometimes trusts also come into play should you be rendered incapable of handling your estate when you are alive – this would basically include a mental or physical condition that makes it impossible for you to make decisions on your own such as Alzheimer’s or a coma. A Phoenix trust is a way to designate not just who gets your money but how it is spent. For instance, should your beneficiary be a minor child, the trust could hold the money you left to them until they reach legal age. You can also designate your assets to go towards things such as living expenses for family members or college tuition. A trust will also protect your money from taxation in the event of your death and cannot be reached by bill collectors or used towards settlements against you.

Who Needs Phoenix Will and Trust Programs?

Anyone who has anything of value, be it emotional value or monetary value, has significant use for a will and or trust program. Establishing a Phoenix will or Phoenix trust (many times it’s both) is just another responsible part of estate and financial planning. Not having a plan for your assets in place for your demise will impact those you leave behind significantly. If no beneficiary is named to your estate, it will immediately go into probate court will it will go through the court system until it is decided by a judge who gets your estate and how much of it they will get. Even if all goes well for your family members, this will certainly mean the loss of time spent researching laws, hiring laws, showing up in court, etc. AND the loss of money in legal fees and time off from work.

Arizona Location
3055 E Waterman Way
Gilbert, AZ 85297

California Location
California Trust
4025 Camino Del Rio South
Suite 300
San Diego, CA 92108

Benefits of a Phoenix Family Trust

A Phoenix family trust is a very valuable tool when it comes to estate planning and controlling your assets. Family trusts are a specific type of living trust where the beneficiary of the trust is related to the person who established the trust. A Phoenix family trust is actually one of the most common kinds of trusts in Arizona. Legally speaking, the family trust is no different than any other kind of trust but this type of specialty program comes with many different benefits to you, your beneficiaries, and your estate planning agenda.

Appealing Tax Advantages

When you transfer assets from parents to children or spouse to spouse after death, there are certain taxes involved in this process. Many people choose to use Phoenix family trusts to lower their inheritance taxes to the absolute minimum. One of the biggest benefits of trusts in this country is that beneficiaries will not be required to pay income taxes on the money in the family trust program. This is especially important because it not only impacts the amount of tax they would normally pay if the money was not in a trust and considered income, it would also impact their tax credits, tax brackets, and qualifications for tax programs – meaning, their earned income could face a much higher tax rate if a trust was not established and they received an inheritance. This could cost them a large chunk of their inheritance and the money they make at their regular job.

Protect Your Assets

When you place your assets into a family trust you are ensuring the protection of your assets for your beneficiaries. If you die without a family trust, your estate must then go through the probate court that will then decide how your assets should be divided – this will surely do two things, cost your family time, and cost your family money in legal fees. Your family is likely to lose large amounts of your estate if you died with any unsettled bills or settlements against you. If you established a family trust, your assets would be protected for your family and creditors would not be able to pursue funds from the trust. Another unique benefit to a Phoenix family trust is that you will be able to designate how your assets are spent. For example, you could hold the funds in an account for a minor child, or mandate that the money is spent on something such as college tuition. Establishing a family trust is essential for those who want to protect their loved ones when it comes to estate planning.

Phoenix Family Trust Basics

A trust is a type of legal designation, somewhat like an account, that assists in the management of property. Types of property controlled by the trust may include assets, real estate, money, jewelry, and basically anything of value. A trust is often a way to get big tax breaks or avoid paying taxes on the property as it is transferred. The party who creates the trust is known as the trustor, the person responsible for the trust is known as the trustee, and those who benefit from the property in the trust are known as the trust beneficiaries. Many Arizona residents have questions about Phoenix family trust programs and wonder if they need to establish this type of account. Read on to learn the basics of this specific type of trust.

What is a Phoenix Family Trust?

A family trust is a specific type of trust designation when family members of the trustor are named as the beneficiaries. Family trusts are some of the most common types of trust accounts. In legal terms, a family trust is the same as any other trust; a Phoenix family trust is just a more specific kind of trust. When speaking in terms of a family trust, the family member is able to transfer assets and other types of property to family members. Family trust beneficiaries may include a spouse, children, and any other relative to the person who originates the account.

How a Phoenix Family Trust is Used

Commonly, people wonder why they would want to put their assets and other property into a trust type program to be managed by a trustee instead of just giving their family members the property in question – there are good reasons to establish a family trust. When you establish a trust, you can put certain contingencies on the release of your funds and valuable assets. For example, you can restrict access to the trust until an underage child has reached legal age. This type of program is also useful if you want your property to be put towards a certain thing, such as education. A Phoenix family trust is also commonly used when there are multiple beneficiaries to your estate or when a child beneficiary is not the child of your current spouse. When you use a family trust, you can control how the funds and valuables are handled and also receive tax breaks in the process.

Who Gets Your IRA If You Pass Before It Is Spent

Taking your retirement plan into your hands is the only way to ensure your future is secure. An Arizona IRA, or Individual Retirement Account, is a very valuable resource for those who take planning for the future seriously. This type of account offers people an alternative to hoping the SSI program will still be intact once they reach retirement age; it is very unlikely that Social Security Income will be available for all of the generations in the workforce today.

Many people have questions about what happens to your IRA funds should you pass before you are able to spend all of the money you previously deposited in the account. If you do not plan properly, the IRS may be the ones who benefit from your hard earned savings. Naming a beneficiary is extremely important; in most cases you are even able to name more than one heir to your IRA – but many people completely overlook this important detail when opening an account.

Naming a Spouse as an IRA vs. a Non-Spouse

Should you name your spouse as beneficiary of your IRA, they will have the biggest advantage over any other beneficiary. If you pass before your husband or wife, they can then take the funds and put them into a new account in their name and it is treated as if they originally opened the account. Your spouse will then having until they are 70-1/2 years of age to make the first withdraw.

If your children or other heirs are named as a beneficiary, they may not have such an easy time with the funds in the account. Non-spouse beneficiaries must make the first taxable withdraw from the account within the first tax year in which they inherited the IRA. They will then be required to make minimum withdraws annually – these withdraws could even count as their income and be taxed additionally.

When IRA Beneficiary Trusts Should Be Established

Naming a trust as a beneficiary is essential in some circumstances. An IRA trust can protect your final wishes and the wellbeing of those you leave behind. Essentially, an IRA trust allows you to control how the funds are spent and your loved ones don’t have full access to the account. This is a common practice when an account holder has children that are not from their current spouse – it allows them to benefit from the account without any roadblocks. IRA beneficiary trusts are also established for minors or people who may be at risk for frivolous spending. Planning who inherits the account ahead of time will save your family from having to sort it out during an already difficult time.

Arizona Location
3055 E Waterman Way
Gilbert, AZ 85297

California Location
California Trust
4025 Camino Del Rio South
Suite 300
San Diego, CA 92108

Phoenix Living Trust: Who is Involved?

480.266.4025

619.542.7771

What You Need to Cover in Your Phoenix Will and Phoenix Trust

Phoenix Will and Phoenix Trust for Retirement Accounts

Phoenix Trust: Smart Financial Planning

Naming a Beneficiary on Your Phoenix Will

Phoenix Will and Trust Common Questions

Phoenix Will and Trust Startup Guide

Benefits of a Phoenix Family Trust

Phoenix Family Trust Basics

Who Gets Your IRA If You Pass Before It Is Spent

Services

480.266.4025

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