A Phoenix trust is a type of account which allows you to designate who your money and belongings go to and how they are spent. This may involve a simple plan such as holding inheritance for a young child until they reach legal age or your plan may be a lot more complicated than that. Trusts are commonly used to control how money is spent by your heirs – for example, if you have an adult child and you wish your money to be held until they complete college or get married, a trust allows you to control that. Learn more below about how a Phoenix trust could work for you.
When You Need a Phoenix Trust
You might be thinking about your future and thinking about making a plan, but do not make the mistake of waiting until it is too late! Having a set plan of action through a Phoenix will or establishing a trust is essential to your wealth and assets. Many people elect to establish a Phoenix trust or will when they have something of value to pass down. Most of the time, if you have what is commonly called “family money” that has been passed down from your relatives or you earn a significant amount from income, your spouse and/or children should protected as soon as they enter your life. If you establish new savings accounts or retirement account like an IRA or 401K, a trust or will should be established at the same time as the account. Other circumstances which prompt the establishment of a Phoenix trust or will may include lottery winnings, settlements, or inheritance due to the passing of a loved one.
How Thinking Ahead Benefits Your Family
Should you pass without establishing a Phoenix will or trust, you could be putting your family in a very bad financial situation. Even in the best case scenario, if you do not have a clear beneficiary to your accounts, assets, and funds as outlined in Phoenix will or trust your estate will go into the hands of the probate court. When your estate is taken over by the probate court, all of your accounts and assets are frozen until a judge makes a ruling about how your property is divided up between your heirs. Your family will likely lose time in the process and end up with court fees. Additionally, if there is money to be inherited by no trust, the IRS may tax your accounts as earned income for your heirs.
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.
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