A trust is a legal relationship where property is held by one party for the benefit of another. Generally speaking‚ trusts allow an individual to control property‚ control wealth‚ and minimize the amount that goes to pay taxes. There are many types of trusts‚ all of which accomplish a specific goal for the estate plan and have their own sets of rules and unique advantages and disadvantages. The most common trust for estate planning is a Revocable Living Trust‚ however depending on the complexity of the estate‚ many other trusts‚ including Irrevocable Trusts‚ are available for planning purposes. Common trusts include IRA Trusts‚ Special Needs Trusts‚ Gun Trusts‚ Pet Trust‚ Charitable Trusts‚ Life Insurance Trusts‚ Dynasty Trusts‚ etc.
A Revocable Living Trust is essentially a contract that can be used to hold legal title to and manage your property. Similar to a Will‚ you can name your beneficiaries and in what manner they will inherit from you. You will select a person or persons‚ often yourself‚ as the Trustee(s) to carry out the instructions in the Trust. Revocable Living Trusts also allow the person who creates the trust to make future changes through amendments and even terminate the trust if necessary. However‚ the most important reason to have a Revocable Living Trust in Arizona is that it shields your estate from probate.