The legal documents, Phoenix living trust and will, are very commonly confused because they sound and seem so similar in their nature. This confusion often leads people to settle with the option that might not be best for them. Not all people need a Phoenix living trust, but many do – learn about your options.

How a Phoenix Living Trust and a Will Are Different

Firstly, there are two different types of will documents; both have similarities to a Phoenix living trust. The types of will options are last will and living will. Let’s look at the Phoenix living trust, living will, and last will in more depth to discover the differences and benefits.

Living Will

 

A living will is a plan that allows you the outline decisions about your estate, care, and dependents. Living wills don’t just come into play in the event of your death, but in the event of an illness that renders you incapacitated unfit to make decisions for yourself.  With a will you can specify things such as your wishes about life support, burial, and who is to become the guardian of your minor child/children.

Last Will

 

A last will typically comes with the most risks and can be subjected to entering the probate court. When creating a last will, you can name beneficiaries, guardians of dependents, and specify your last wishes. However, a last will can be challenged.

 

Living Trust

A Phoenix living trust is an option used to transfer your estate, or part of your estate, to named beneficiaries.  It allows you to specify how your wealth is transfer and can protect your assets from high taxes and bill collectors.

When a Phoenix Living Trust is the Best Option

A Phoenix living trust is a very safe option when it comes to estate planning. Living trusts are typically attached to a will plan, it just makes it so you can be as detailed as you would like about the distribution of your wealth. A living trust not only specifies who gets your assets, but how they are spent. For example, a trust may make it so your beneficiaries can only spend their inheritance on schooling or living expenses.

Trusts also protect your estate from debt collection. This option also keeps your records private and out of the probate court. Many factors prompt an establishment of a Phoenix living trust. Usually, a Phoenix living will is established when wealth is accumulated or marital circumstances change – such as marriage to a person who is not the parent of your children.

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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