A living trust in Phoenix, AZ is a part of any good estate planning arsenal. It is the way in which assets can be allocated while you are still living in order to determine what happens to them upon your passing. While many people conduct this process through a traditional will, a living trust allows the decisions to be made and administered to a certain degree while you are still alive and upon your passing, the estate avoids going through the process of probate, which can be very costly and time-consuming to those that you’ve left behind. However, in order to determine how well this option will work for you, it is important to understand how a living trust works and a little bit about it. This can be done through Frequently Asked Questions about a living trust in Phoenix, AZ and the process by which it works:

How is a living trust different from a will?

A will is a document that you create before your passing that stipulates how you want your estate to be administered upon your passing. A living trust in Phoenix, AZ is an alternative document that allows for you to re-allocate certain assets to an individual, deemed the trustee on the document, while you are alive. In fact, you can be the trustee of your own property, which is a testament to the flexibility of this document. It can help with long-term management of property and avoid costly taxes and the probate process upon your passing.

How expensive is it?

Creating a living trust in Phoenix, AZ is not much more expensive than creating a traditional will, if at all. If you utilize a template or a software program to help create the document, then you may be able to avoid spending money on an attorney to help you put it together. However, if you are the type that likes to know that every “I” has been dotted and every “T” crossed, then you might think the expense of hiring an attorney to help you put together a living trust is worth the cost.

Do I still need a will after developing a living trust?

Yes, you do. Estate planning is a complicated process. There are a number of caveats involved and the chances are good that you won’t think of everything. There may be some details you leave out or some aspects of your estate that are not appropriate for inclusion in a will. A will makes sure you are covered no matter what you do or do not include in your living trust, so this is still an important document to have as part of the overall package regarding the planning of your estate.

Can a living trust in Phoenix, AZ protect me from creditors following my death?

No, this will not stop the debt from following your estate. It still may be liable for debts that you may owe after your passing and re-allocating items to a living trust in Phoenix, AZ won’t stop this process. In fact, little will once you’ve passed on. This is merely to help with property management and to lower the cost of the taxes on your estate following your passing. Moreover, a living trust ultimately makes decisions about property easier for your loved ones following your death, which is important since they are likely already grieving enough without such important decisions weighing on their shoulders during such a rough time.

Isn’t there a lot of paperwork to fill out for a living trust?

The paperwork for a living trust in Phoenix, AZ is no more tedious than any other aspect of your estate. It does require some paperwork to ensure that the process has been navigated properly. For instance, if you are planning to leave your house as part of the trust and you are the trustee, then you must sign a need deed saying as such. The paperwork can be a bit of a hassle, but it is well worth the effort to spare your loved ones from navigating the process upon your passing. Moreover, it ensures that everything is the way you would like it to be upon your death.

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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.

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