A living trust is an entirely separate entity from a will, although the two share many of the same aspects. A living trust is essentially a three-part fiduciary relationship where the initial principal, often the trustee, transfers a particular asset to the beneficiary. The assets are then held and managed by the trustee, who is an individual, often a close family member. The purpose of the trustee is to keep the assets in place for the beneficiary's benefit. Beneficiaries can access their inheritance when they need it, depending on the terms of the trust and the laws governing it in any particular state. Unlike some forms of living trusts, testamentary trusts do not need to be revocable. Testamentary trusts can only be modified after the testator's death. A living trust must be irrevocable, meaning it cannot be changed after it has been set up. However, just because it cannot be changed, doesn't mean that you cannot make adjustments to your plan. One way that you can adjust the terms of your living trust az is by making adjustments to your estate plan. Although estate planning generally takes the form of a will, some state probate laws allow for adjustments to be made to the estate plan, including revising it in some cases. If you have assets that pass into probate but those assets do not receive a distribution award from the estate, you can make an estate adjustment in probate court to reflect the distribution of those assets. You can also undo a gift that you or the estate did not receive (often referred to as an estate rebittance) if you have an adjustable living trust and file a petition. If you would like to accomplish some tax relief, one thing you can do to minimize estate taxes is to include an "impairment" provision within your living trust. The provision will essentially declare that if a certain condition is met, such as selling the asset, that income tax will be deferred until the condition is fulfilled. This is done through a short-term or long-term tax deferred trust. An estate planning attorney chandler az representative may be able to assist you in drafting a specific clause to include within your living trust for this purpose. In some cases, there may be an option for the grantor to create a revocable living trust. This means that the grantor can control who gets his or her money and what happens to it. Basically, if you die, control can be given to whomever you wish (the designated trustee). However, in this case, you must provide the trustee with a trust deed. If you attempt to revoke the trust, the trustee can take your property immediately by filing a motion with the court. If the court does grant you a revocable living trust, you and your designated trustee are separated and the designated trustee cannot require you to pay any taxes or penalties until you first give them notice. Before you go ahead and draft a living trust document, it is important to remember the basic principles of probate law. First, it is important to choose a very qualified trustee. Second, it is important to keep accurate records, so your records can prove that the trust was made in your name. It is also vital to avoid any possible fraudulent on your part. In the case of an intestate estate, you may be entitled to receive payment or inheritance immediately; in the case of a revocable living trust, you might not. You can learn more about this topic here: https://www.encyclopedia.com/education/encyclopedias-almanacs-transcripts-and-maps/estate-planning.
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