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Quality Local Estate Planning
Estate planning covers multiple topics from increasing the value of an estate, protecting assets and creating a plan to oversee an estate's management and transfer. At Four Peaks Planning, Inc. we focus solely on legal documents needed for simple and efficient estate management and transfer.
We assist Arizona residents in developing comprehensive and affordable estate plans through combinations of powers of attorney (POA), last will and testaments and/or revocable living trusts.
Every Arizona family is unique. However, many families share similar estate planning goals which we attempt to address throughout this site. Our goal with this website is to help those starting the planning process acquire an understanding of common estate planning objectives and how they might be achieved prior to sitting with an estate planner.
Powers of attorney are generally used during a person's incapacity when one is unable to make his or her own medical and financial decisions. If POAs are not in place a court must appoint someone to make decisions which can be costly financially and time-wise.
A last will and testament is the only document that can nominate guardians for dependent children. A last will and testament can also appoint executors / personal representatives and name beneficiaries of an estate. If a person passes without a will, the state of Arizona has established distribution rules for an estate and will choose personal representatives and guardians.
A revocable living trust compliments both POAs and last will and testaments by offering additional control over how assets are managed and distributed.
Living trusts benefit not only very wealthy families but typical families with assets such as a home and life insurance. The majority of this site illustrates the various functions a living trust may fulfill.
Controlling DistributionsFamilies with life insurance or any other assets that might be liquidated after the decedent's passing may wish to control how and when young beneficiaries receive their inheritance. A trust can provide terms of how beneficiaries or their guardians receive money for education, health, maintenance and support. | |
Maintaining a ResidenceA trust can hold and maintain a residence after its owner passes for the benefit of children, their guardians, a spouse in a blended family or anyone else the trust's creator chooses. A provision can instruct the trust to pay none, some or all expenses such as the mortgage, taxes, utilities and maintenance. | |
Avoiding ProbateProbate is not tax, probate is a court process to validate a will, open an estate to creditors and ensure the will's instructions are carried out correctly. Assets with named beneficiaries, held jointly with rights of survivorship or in a living trust legally avoid probate. |
What Is a Revocable Living Trust?
Revocable means the document may be changed (amended) or terminated. The only person(s) allowed to amend of revoke a trust is the creator(s) of the living trust, called a trustor (aka grantor or settlor).
It is a "living" trust because it is created while the trust's creator is still living.
A living trust has similarities to a last will and testament, such both name people to manage your estate when you have passed and both can name beneficiaries. However, a will is only a set of instructions on paper while a living trust can be visualized as a box, which can legally hold assets because a living trust is a legal entity like a person or business.
The living trust can hold assets long after the trustor has passed to accomplish a variety of planning objectives. The trust is managed by trustees. The trustor often appoints him or herself as the initial trustee, which allows the person creating the trust to retain full control over his or her assets. If the initial trustee is unable to act or has passed, successor trustees appointed by the trustor follow the trust's instructions.
An individual can create a trust or a couple can create a trust naming themselves Co-Trustors and Co-Trustees. A couple does not need to create a separate trust for each of them unless they intend to hold assets separately.
The following assets are often transferred into a revocable living trust:
- Real estate
- Bank accounts
- Personal property
- Vehicles
- After-tax investments
Trusts are also often named the beneficiary of life insurance policies and other assets that can name beneficiaries.
About Four Peaks Planning, Inc.
Since 2004, we have been helping Arizona families prepare affordable estate plans involving powers of attorney, wills and living trusts. We are licensed by Arizona's Supreme Court as a Certified Legal Document Preparer (#81353) to provide estate planning options and prepare legal documents. We do not provide legal advice but have attorneys available should you require legal advice or more advanced planning. We offer complimentary in-office and in-home appointments both during daytime and evening hours. Read reviews from clients on Arizona's Better Business Bureau website.