{"id":1894,"date":"2021-03-08T21:03:06","date_gmt":"2021-03-08T21:03:06","guid":{"rendered":"https:\/\/www.jacksonwhitelaw.com\/arizona-estate-planning\/?p=1894"},"modified":"2024-03-27T23:20:41","modified_gmt":"2024-03-27T23:20:41","slug":"living-trust-checking-account-arizona","status":"publish","type":"post","link":"https:\/\/www.jacksonwhitelaw.com\/arizona-estate-planning\/blog\/living-trust-checking-account-arizona\/","title":{"rendered":"How Does A Living Trust Checking Account Work In Arizona?"},"content":{"rendered":"

Introduction<\/h2>\n

One of the most commonly used and most important documents in estate planning is a last will and testament that itemizes all of the assets and property that are owned and determines how they will be distributed upon the death of the owner. While a will is beneficial, it’s one downfall is that it does not go into effect until the person passes away. If you have not kept your will up to date and have forgotten to add in new assets and properties, your beneficiaries are going to have to go through probate to retrieve them.<\/p>\n

Luckily, this can all be avoided through the use of a living trust. A living trust is a proactive approach to estate planning that sets aside property and assets for safekeeping.<\/p>\n

What Is An Arizona Living Trust?<\/h2>\n

Living trusts are established to provide legal protection<\/a> for property and assets, to make sure those assets are distributed correctly, to avoid probate, and to avoid or reduce taxes legally. Living trusts, also referred to as revocable trusts, work by appointing a trustee or trustees to look after assets that a trustor has placed into a trust.<\/p>\n

For instance, if the father of a family decides to place assets such as the family home and the vacation homes in a trust, he is the settlor, and he can appoint whomever he would like as the trustees. The trustee\u2019s role is to look after all assets that are included in the trust. This includes managing the finances associated with the assets and distributing them according to the settlor\u2019s wishes when they pass away.<\/p>\n

Why Is a Living Trust Valuable?<\/h2>\n

Many people rely on a will to transfer their assets to beneficiaries, but the one drawback of a will is that it is meant to pass assets on once someone has passed away. This means that the assets that the testator plans on passing down to their beneficiaries cannot be passed down until they die. This is somewhat troublesome if there are assets that weren\u2019t added to the will in time or if beneficiaries need to access any of the assets in the trust.<\/p>\n

Here are some of the top reasons you should utilize a living trust in Arizona:<\/p>\n