{"id":913,"date":"2017-11-30T14:23:12","date_gmt":"2017-11-30T14:23:12","guid":{"rendered":"https:\/\/www.jacksonwhitelaw.com\/arizona-estate-planning\/?page_id=913"},"modified":"2022-08-24T21:24:41","modified_gmt":"2022-08-24T21:24:41","slug":"what-is-a-living-trust","status":"publish","type":"post","link":"https:\/\/www.jacksonwhitelaw.com\/arizona-estate-planning\/blog\/what-is-a-living-trust\/","title":{"rendered":"What is a Living Trust?"},"content":{"rendered":"
A living trust is a legal document that establishes an instrument to hold, manage, and distribute your assets. Unlike a will that simply directs the transfer of assets after you die, a living trust provides asset management during your lifetime and after your death. As long as the trust is organized as a revocable trust<\/a> (in contrast to an irrevocable trust, which we\u2019ll discuss later) you will be the trustee<\/a> who manages everything, allowing you to amend<\/a> or revoke the trust at any time. You will transfer assets to the trust, where you will continue to benefit from the assets during your lifetime. When you die, the trust will pass into the hands of a successor trustee, who will then distribute the trust\u2019s assets to your beneficiaries<\/a> according to the directions in the trust document.<\/p>\n Start by consulting with a qualified estate planning attorney who understands the unique laws and regulations in your state. You may be able to get away with using a do-it-yourself will if your estate is simple enough, but a trust is a complex document that requires legal expertise.<\/p>\n Next, map out the interested parties to the trust. If you would like to retain full ownership and control of the assets during your lifetime, then you will be the trustee, and you can designate a successor trustee to take over when you die. If you wish to relinquish control of the assets (usually to minimize estate taxes with an irrevocable trust) you\u2019ll need to select a third-party trustee. You\u2019ll also need to designate the trust\u2019s beneficiaries. For a living trust, list yourself and your spouse as the primary beneficiary, and then select family, associates, and charities to be contingent beneficiaries after your death.<\/p>\n If you have any minor children, the trust document should specify who will serve as their guardian<\/a>. It would be wise to list a backup guardian in case the primary guardian dies before you, and it\u2019s always a good idea to talk to these individuals ahead of time so they are aware of your wishes.<\/p>\n Once the trust is fully organized, you can transfer your assets to the trust. Some estate planning attorneys will have an assistant or a small division in the firm to assist you through this complicated process, but if not, at the very least they should provide you with clear, written instructions on how to transfer your assets to the trust. You\u2019ll need to list the trust as the new owner of the assets, and adjust the beneficiaries listed on the accounts as necessary.<\/p>\nHow to Set up a Living Trust<\/h2>\n
The Benefits of a Living Trust<\/h2>\n