How Much Does a Living Trust Cost in Arizona?

The cost of establishing a living trust in Arizona depends on several factors, including the trustis structure, the assets transferred to the trust, and whether any additional legal documents are required. You would like the living trust to be tailored to your specific estate planning needs.

Many people have misconceptions about living trusts. They may think trusts are expensive to create or reserved for high-net-worth individuals. Living trusts are common estate planning tools. When considering how a living trust fits into your estate plan, your primary concern may be the financial aspect. What’s the actual cost of a living trust in Arizona? It’s not one size fits all. An experienced estate planning attorney can help you get your financial affairs in order and create a living trust in the most cost-efficient manner possible to honor your specific wishes.

What Is a Living Trust?

A living trust is a written agreement that places your assets under someone else’s care to manage and distribute as you specify, according to the terms of the trust. A living trust involves three parties: the creator of the trust, the trustee who oversees the trust, and the beneficiaries who receive the assets. Another name for a living trust is a revocable trust.

People may use revocable living trusts to transfer assets and property to specified loved ones by naming them as remainder beneficiaries. That allows your loved ones and other beneficiaries to receive inheritances without going through the time and expense of the formal probate process.

Why Should You Get a Living Trust in Arizona?

You may wish to incorporate a living trust into your estate plan if you have various legal and financial needs or objectives, such as:

• Wanting to avoid delays and legal expenses associated with probate when passing assets to loved ones and beneficiaries
• Concerns about the tax implications of certain investments
• Needing someone to manage your assets for you, especially if you worry about becoming incapacitated due to chronic illness or disability
• Desiring flexibility in updating your estate plan with a revocable living trust.

An experienced trust lawyer or estate counsel can sit down with you to discuss your objectives and help you determine whether various types of living trusts can serve your interests. In many cases, a person who establishes a living trust will oversee the trust assets during their lifetime and can revoke or amend the trust if needed.

Do I Still Need a Will If I Have a Living Trust?

Even if you place assets in a trust to be distributed after your death, you should still include a will in your estate plan. A pour-over will is used alongside a trust to ensure that all your assets are managed according to the terms of the trust, including those assets not transferred to a trust during your lifetime.

A will also allows you to appoint an executor to manage your estate after your death. The executor can gather and inventory your estate assets, pay your debts owed, and satisfy any applicable estate taxes. If you do not transfer all your assets to a trust, a will allows you to direct who will inherit those assets in your estate.

Finally, if you have minor children, your will can nominate someone to serve as guardian for your children if both you and your spouse pass away.

What Are Some of the Benefits of Having a Living Trust?

Living trusts offer individuals and families various benefits, depending on the specific structure of the trust. Many people create trusts to distribute inheritances to family members and beneficiaries while avoiding probate. Placing one’s assets into a living trust means they no longer go through the probate process. The probate court-supervised process can delay the distribution of inheritances and incur added expenses such as court fees and attorney costs.

A living trust can help individuals and families minimize tax liabilities. An estate planning attorney can help you identify the type of trust best suited to your tax planning goals.

Ultimately, a living trust ensures that you have someone of your choice to manage your assets if you become incapacitated and are unable to manage your financial affairs. If you name yourself as the initial trustee of your living trust, you can select a successor trustee to take over managing the trust if you become incapacitated.

What Are Some of the Factors That Could Affect the Cost of a Living Trust?

Many people assume that creating a living trust involves significant expenses and thus only the wealthy can afford living trusts. That is a misconception.

Some of the factors that may affect the cost of a living trust include:

• The complexity of the assets you want to place into the trust
• Your estate, financial, and tax planning objectives
• The types of legal transactions you may need to undertake to move assets, such as real estate, into the trust
• Whether you choose to appoint a professional trustee, or nominate yourself or a family member to serve as trustee
• Whether you need to make changes to a revocable living trust during your life
• The types of professional advice you will need to structure the trust, including help from an estate planner, financial planner, trust and estate counsel, or tax professionals

Some people choose to cut corners on the costs of creating a living trust by drafting a trust document without the assistance of a lawyer. However, given the complexity of living trusts, seeking help from a qualified attorney can help ensure you’ve set up the trust correctly and that it serves your specific needs and objectives.

Contact an Arizona Estate Planning Lawyer

If you have questions about whether a living trust would be of benefit, talk to an Arizona estate planning attorney with Mushkatel, Gobbato, & Kile, P.L.L.C.. Please contact our firm today to schedule an initial consultation and discuss how we can assist you with your estate planning needs. Our legal team boasts over five decades of combined experience, helping individuals and families in Arizona with estate planning, special needs trusts, guardianships and conservatorships, and estate litigation. Our firm combines the personal attention offered by boutique law firms with the resources provided by larger firms. Let us show you why we have earned the trust and respect of our clients.

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