What Is a Living Trust?
The term living trust is the popular name for a trust set up when you’re alive. This is called an inter-vivos. With a living revocable trust, you can be the trustee of the assets and maintain control over the assets inside the trust. You can also dissolve the trust, if so desired. Assets in this type of trust are then part of the individual’s estate, though the use of such a trust can ensure that your assets pass on to your heirs upon your death outside of probate.
An irrevocable trust is one where you put assets in the trust and then give up control of them. The trustee is essentially the legal owner. The trustee could be a family member or a trust attorney. Or you could have a bank’s trust department manage it. Setting up an irrevocable trust will reduce the size of your estate. Furthermore, it allows you to transfer assets to your heirs without going through probate. Note that this doesn’t mean you can’t benefit from the assets in some way. Charitable remainder trusts may let you receive the income from your assets until death but the assets go to the charity upon your death. You can also set up a trust that will provide for a disabled loved one such as a special needs adult or spouse with dementia. The trust must be set up while you’re legally competent to do so, so don’t wait until you have a diagnosis of dementia or Alzheimer’s before you set up such a trust for yourself or your dependents.
Do I Need a Will, If I Have a Trust?
Yes. Every adult needs a will, whether or not you have a trust. Furthermore, the will provides a way to determine how property outside the trust will be distributed. Consult with an Arizona attorney to ensure that your trust and will work in tandem instead of conflicting with each other.
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