A Revocable Trust, often called a Family Trust or Living Trust, differs from a Will. Having a Trust will save your estate from a probate and also provides greater privacy. A common question people ask is why should I bother creating a Trust? It is a misconception that only wealth individuals should create a Trust. A Trust is beneficial for many reasons. An Arizona family Trust or living Trust creates a legal contract that specifies and manages the distribution of the Trust’s assets. A Trust can take advantage of tax benefits, avoid probate, preserve your privacy and manage financial dealings. Much like financial planning while you’re alive, preparing a Living Trust allows you to make plans for your estate after your death. A Family Trust is established during your lifetime and is usually revocable, so you can make changes to your Trust. If the situation arises due to changes in your financial circumstances, you can also reclaim property that was transferred into the Trust.
Most families like to use Trusts to minimize inheritance taxes that can be associated with the transfer of assets from parents to children or grandchildren. A Trust also allows parents to remain in control of their assets and decide on the distributions amounts and place age restrictions on the beneficiaries as to when they receive the assets. It can also ensure providing for family members who are disabled. Some Trusts can be created for the purpose of protecting assets and build lasting framework for the family’s wealth. The key to a successful Revocable Living Trust is to create one that best suits the family’s needs and one that will function properly over time and ensure to fulfill the wishes of the Trustor. For more information on creating your Revocable Trust, call the Hedtke Law Offices.