What Is An Arizona Family Trust?

There are numerous reasons why an individual would choose to set up a Scottsdale family trust. Even those that don’t have much to leave behind should something happen to them want to know that remaining family and friends are left holding the bag to decipher how to split up the items left by the deceased. To understand whether or not you need a family trust, whether you live in New York, Florida or are attempting to set up an Arizona family trust or on in California, you need to know what it is and why it’s important.

Identification

A family trust is a document that provides a directive to your family regarding your wishes should something happen to you. This is different from an advanced directive that gives instructions regarding your medical wishes (i.e. what your family should do if the doctors say there is no hope). A Scottsdale family trust goes over your wishes regarding your money or any other liquid assets you might have. It also dictates who you want to control this process should you become disabled in any way.

This is different from a will. A will document goes into specifics about your “stuff.” This is where you talk about who you want to have your favorite jewelry or pictures and how you want your physical assets to be divvied up. The family trust is about monetary assets; to be blunt, it’s about whom you want to leave your money to and how you want it divided up. Remember, the laws are different in every state regarding a trust; so, for example, if you are setting up an Arizona family trust, make sure you know the rules of the state so it is done properly.

Choosing an Administrator

When you choose the person that you want to administer your trust, you should be thinking of the most trustworthy person you know. This doesn’t automatically mean the person closest to you; for example, you may love your spouse to death, but if you may also know his/her personality well enough to know that they will not be responsible enough with your money to do what you wish. Choose someone that will understand how to navigate the process. Remind that individual that if they don’t follow the instructions of the trust to the letter, there may be legal consequences.

Moving Assets

Once you’ve got a trust set up and you’ve spelled out what you want with the administrator, begin to transfer debts into it. For example, you can list your bank account as part of the trust via an easy-to-fill-out form from the bank. This re-assigns the account to become part of your trust and the bank knows exactly what to do in the event that something happens to you. There is no question. However, keep in mind that you must take this seemingly-unimportant step to assign your bank account into the trust. Otherwise, there may be question of what to do about it should something happen to you. For example, a Scottsdale family trust with a bank account must have a form filled out and signed by you to ensure that the account is part of the trust; otherwise, this isn’t clear and it may cause some confusion in the event of an untimely death or physical disability.

Additional Tips

You might think that setting up a trust is time-consuming and unnecessary. For example, the process of setting up an Arizona family trust might seem challenging to navigate and tricky to understand. Take your time, read through all pertinent paperwork and do your homework before making any final decisions. But above all else, understand the importance of setting up a family trust. Just like a will, the more plain you can make things should something happen to you, the easier it is for the loved ones you’ve left behind, who will already be going through a very tough time. The trust can help to prevent family fights and uncertainty over how to handle the financial aspects of your life, leaving everyone the space to grieve in peace and comfort, knowing that you took the time to think of the necessary steps to be taken before you passed away.

Need Help?

If you are not sure as to what legal document you currently have contact one of our professionals to help you with your estate planning. They will make sure you have all of your grounds covered and have the right legal documents that best suite your wants and needs.