Frequently Asked Questions

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A living trust is a legal document that allows you to transfer your assets into a trust during your lifetime. During your lifetime you still own and manage the assets in your trust. Upon your death the trust is managed by a trustee, who is responsible for distributing the assets to your beneficiaries according to your wishes.

A Living Trust avoids the court the court process probate and thereby reduces costs and delays for the beneficiaries. It is a confidential document that keeps all personal financial affairs private. A Living Trust can also protect the inheritance of the beneficiaries from creditors and liabilities. 

Minor children cannot own or hold property in their names. However, a Living Trust will allow funds to be held in trust for the minor beneficiary until they attain the age of eighteen or older as designated in the trust document by the owners.

Assets that exceed $100,000 for real property and $75,000 for personal property are subject to probate in the State of Arizona.

The Federal Estate Tax exemption is $13,610,000 for 2024. Assets above these limits are subject to the Federal Estate Tax. The exemption limit is subject to change pending action by the government.

The State of Arizona no longer has an estate tax.

There is no impact on income taxes by holding assets in the Living Trust.

Many adults will become incapacitated, either temporarily or permanently, sometime during their life.  A General Durable Power of Attorney lets you designate someone to manage your financial affairs for you in the event you are unable to do so for yourself, and helps avoid costly court-ordered guardianship and conservatorship. A Health Care Power of Attorney lets you decide who makes medical decisions for you if you are unable to do so. A Mental Health Care Power of Attorney lets you decide who makes decisions if you are vulnerable with a mental disorder. A Living Will lets you decide when you want to be taken off life support if your medical situation is hopeless. 

A Power of Attorney is a legal document that allows you to appoint someone to act on your behalf in financial or legal matters. This can be helpful if you become incapacitated or unable to make decisions for yourself.

A trust that maintains assets to provide for a beneficiary’s special needs that are not being met by another financial source such as a governmental agency. A special needs trust can provide resources to ensure that a special needs beneficiary will have the assets necessary to provide for their unique care for the balance of their life.

The estate planning documents are no longer valid. Each party to the divorce could have new documents prepared to meet their changed individual needs.