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.
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.
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.
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.
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 -
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