Frequently Asked Questions
What is a living trust?
"A living trust is a legal arrangement established by an individual (the grantor) during their lifetime to protect their assets and direct their distribution after the grantor's death.
It is an estate planning tool that can help family members and beneficiaries avoid a lengthy, public, complex, and sometimes costly, probate process.
A living trust takes the form of a legal document. The document lays out the terms of the trust and the assets that the grantor assigns to it. A trustee is designated by the grantor as the individual (or entity) who, at a certain point, will control those assets for the benefit of the beneficiaries."(1)
What is a will?
A will, or last will and testament, "can confer rights or ownership over real property or personal property and can also be used to appoint legal guardians, but only takes effect once the testator dies." (2) Its implementation requires a probate where the court oversees its execution.
What is probate?
"Probate is the analysis and transfer administration of estate assets previously owned by a deceased person. When a property owner dies, their assets are commonly reviewed by a probate court. This court provides the final ruling on the division and distribution of assets to beneficiaries. A probate proceeding will typically begin by analyzing whether or not the deceased person has provided a legalized will." (3)
What is living will?
A living will--also known as health care directives, advance directives, or a physician's directive--is a legal mechanism "where an individual can choose to prevent medical personnel from using life sustaining treatments for life-threatening health situations."(4)
What is a power of attorney?
"A Power of Attorney is a legal document that gives an adult the authority to act in your place. The person you appoint to act in your place is known as the "Attorney in Fact" or agent. It is very important that your agent is someone you trust.
With a valid Power of Attorney, the trusted person you name will be legally permitted to take care
of important matters granted by the Principal – for example paying your bills or managing your
investments."(5)
What is a certification of trust?
A certification of trust, or certificate of trust, or abstract of trust is the "condensed version of the trust widely accepted in lieu of the entire trust document" to keep certain details private.(6)
What is a children's trust?
A children's trust "refers to a trust fund created for kids, usually by family members, in order to have the assets managed until the children mature."(7)
What is a trustee?
A trustee is a person that manages the assets of a trust.
What is a trustor?
A trustor, also known as a grantor, is an individual that establishes a trust.
What is a legal document preparer?
"The Legal Document Preparer Program certifies legal document preparers in Arizona who provide document preparation assistance and services to individuals and entities not represented by an attorney. Legal document preparers may provide general legal information but may not give legal advice."(8)
What is a quit claim deed?
A quit claim deed is a "document by which a grantor conveys his or her present interest, if any, in a given parcel of real property to a grantee without representing, covenanting, or warranting that the title is good." (9)
What is a pour-over will?
"A pour-over will is a legal document that ensures an individual's remaining assets will automatically transfer to a previously established trust upon their death." (10)
At what age do most people start estate planning?
People start at different ages, depending on life events and level of personal proactivity. As long as you're over 18, there's no such thing as too early, but there is a too late.
How do I know if I need a last will or a living trust?
Both options pass assets, however, a will does not avoid the probate process. If you want to avoid probate, a living trust may be the option.
What is the difference between a will and an estate plan?
A will is one document in a complete estate plan. For example, you may want to assign one person for health care responsibilities, another for financial responsibilities, and you may want to make arrangements for the care of minors.
Do I need to speak with an attorney before starting my estate plan?
It is not necessary to speak with an attorney before starting your estate plan but it may be advisable if you are seeking a complex arrangement. If a complex arrangement is necessary, we would be happy to refer you to a trusted attorney.
What if I need to make changes to my estate plan?
A will and living trust may be updated as much as needed, assuming you are still considered competent to act on your own behalf.
How often should I update my will/trust?
A will or trust should be updated when there are changes in the original plan. For example, you may purchase a home or have a child. You may want to review every 1-3 years.
Will I have to pay estate and inheritance taxes?
Taxes are required on estates above a certain level. We would be happy to refer you to a trusted tax professional.
What happens after I order my complete estate plan?
After you order, we can generally deliver the full package with 3-5 business days.
(1) https://www.investopedia.com/terms/l/living-trust.asp
(2) https://www.law.cornell.edu/wex/last_will_and_testament
(3) https://www.investopedia.com/terms/p/probate.asp
(4) https://www.law.cornell.edu/wex/directive_to_physicians
(5) https://superiorcourt.maricopa.gov/media/5100/gnpoafaqz.pdf
(6) https://www.law.cornell.edu/wex/abstract_of_trust
(7) https://www.law.cornell.edu/wex/child%27s_trust
(8) https://www.azcourts.gov/cld/Legal-Document-Preparer-Program