Financial Aspects of Living Trust

When it comes to determining whether or not you need a living trust, there are a number of factors to consider. First, is whether or not your assets actually require a living trust. If you don’t have major assets, such as property or assets of that nature, then you may not need to title things under this document. However, if you do, this is a good way to manage those assets and then allow them to pass to the beneficiary of that trust upon your passing.

In addition to considering the general aspects of a Phoenix living trust, there are also the financial considerations to keep in mind. One of the more commonly asked questions about this document is whether or not it is expensive to create. Since a living trust is not generally any more complicated than a traditional will, it is not something you would need to hire a lawyer to help you create if you don’t have a lot of assets to title into it. However, if you do have a number of assets to title into the living trust, then professional assistance might be necessary to ensure that you do things right.

Another thing to consider is that while your assets are re-titled into a living trust to protect them from the process of probate, it is not an automatic protectant against creditors that try to go after you to collect debts. In most instances, upon your passing, anything you owned is subject to debts that you lawfully owe. This means that creditors can use public property records to find out what your assets are, in terms of property anyway, and the pursue them for payment, despite the fact that they are included in your living trust. Ironically, this is something that probate can protect your property assets from; despite the fact that most people try to avoid this process because it is long and often costly.

When you are setting up a living trust, these are the kinds of questions that it is important to ask. Finding out the best way to set up the trust so that it offers optimal protection and ensures that your assets are protected and passed down in the way in which you stipulate is the purpose of this type of estate planning and is the crux of why you would set up a Phoenix living trust.

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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.