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.

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