Scottsdale trust attorney Abigail Neal is a second generation Arizona native who enjoys helping her clients meet their personal and professional goals. One part of Abby’s practice is creating trusts for clients as part of a comprehensive estate plan. Scottsdale trust attorney Abby Neal is often asked the following questions about trusts:
What is a Living Trust?
A Living Trust, also known as a Revocable Living Trust is a trust you create while you are alive. As the name implies, the trust is totally revocable or amendable by the trustmakers. Scottsdale trust attorney Abigail Neal helps people of all ages create Revocable Living Trusts tailored to the individual needs of themselves and their families. A Revocable Living Trust serves the following important functions:
• Create a custom distribution plan for heirs, which includes not only who assets should be passed to, but also how the assets are transferred
• May provide creditor and predator protection for assets left in trust for beneficiaries
• Ensures that a deceased spouse’s assets are transferred to his or her children, even in the event of the surviving spouse’s remarriage
• Create an asset management plan in the event of the trustmaker’s incapacity
• Avoids probate after the trustmaker passes if properly funded (call Scottsdale trust attorney Abigail Neal to learn more about trust funding)
• Remains private, instead of becoming a public record during a probate action
• May provide substantial estate tax savings
If I create a trust are my assets creditor protected?
Possible, but unlikely. Many people have the misconception that if you create a trust and transfer your assets to the trust, then those assets are protected from your creditors. There are certain types of trust that can provide creditor protection from the trustmaker’s creditors, but these types of trusts are often not appropriate for many people. A general rule is that the more control you have over an asset, the more likely it is that a creditor can attach to or seize the asset. Likewise, the less control you have over an asset, the greater the creditor protection. For many people, giving up control to a valuable asset is not something they want or can afford to do.
For example, Scottsdale trust attorney Abigail Neal is often asked if someone creates a trust and puts their house in the trust, is the house creditor protected from the trustmaker’s creditors? If you are using a Revocable Living Trust, which is appropriate for most people, the answer is no. However, assets held in trust may be creditor protected for beneficiaries after the trustmaker passes. Call Scottsdale trust attorney Abigail Neal to discuss how you can leave assets in trust creditor and predator protected for beneficiaries.
Why is a trust better than a simple will?
Wills and trusts accomplish some of the same purposes, but in different ways. Both simple wills and trusts create an asset distribution plan for heirs, but wills are required to be probated and the distribution plan can only state who gets the assets, but not how they receive them. Because a properly funded trust does not have to go through a public probate action, trusts can remain private while wills are public. In addition, wills do not contain provisions for the event of the trustmaker’s incapacity like a trust does. Call Scottsdale trust attorney Abigail Neal to discuss further how wills are different from trusts.
Hire Scottsdale Trust Attorney Abigail Neal to Prepare Your Trust
We offer a number of flat fee estate plan options designed to suit each individual client’s needs. Call us today at (480) 699-7992 to discuss which plan is right for you and your family.