What does it mean to have an irrevocable trust in Arizona?

If you have an irrevocable trust, or if you are a beneficiary of someone else’s irrevocable trust, you should be aware of some important provisions contained in the Arizona Trust Code. When someone tells you they have a trust, they are almost always referring to a “living” or revocable trust.

How to create a living trust in Arizona?

You can create a Trust in Arizona by downloading and completing your preferred document type (Revocable or Irrevocable). Within the form, there should be details regarding the names of the Grantor, Trustee, Successor Trustee, and the Beneficiaries. The Grantor must also list the assets which are to be transferred to the trust.

Who is the grantor of a revocable trust?

Grantor (or “Settlor”) – The individual who creates a Trust in order to transfer real estate or property to the Beneficiary or Beneficiaries. If a Revocable Trust, the Grantor has the ability to designate themselves as the Trustee and alter the trust anytime after it has been created.

What kind of trust do I need for my grandchildren?

A simple revocable trust or irrevocable trust may suit your needs, or you may want to consider one of the trusts with distinct benefits for grandchildren, listed at the right.

Who are the beneficiaries of an Arizona living trust?

Successor Trustee – Upon death or incapacitation of the initial Trustee, the Successor Trustee will assume control of the property outlined in the Trust. Beneficiaries – Person (s) to receive the property and/or real estate describe in the Trust.

Who is the grantor of an irrevocable trust?

Each Irrevocable Trust must have a Grantor, who is the person who signs the trust and brings it into existence. The trust is only a piece of paper, so the trust terms must appoint an individual or entity who will implement the trust’s terms; this person is called the Trustee.

A simple revocable trust or irrevocable trust may suit your needs, or you may want to consider one of the trusts with distinct benefits for grandchildren, listed at the right.

What happens if my house is in my grandparents name?

If your grandparents placed any assets in a living trust, you would not have to include these either. If your house is placed in the trust, the trustee can transfer it to you by deed without court involvement or probate – assuming your grandparents left it to you and no one else.

When did the Arizona Trust Code go into effect?

While enactment of the Code is no longer breaking news – it went into effect January 1, 2009 – many people are still unaware of the significant changes the Code made to Arizona trust law and the requirements it imposes on irrevocable trusts. In short, the Code imposes the following requirements regarding irrevocable trusts:

When to notify a beneficiary of an irrevocable trust?

In short, the Code imposes the following requirements regarding irrevocable trusts: If you are the trustee of an irrevocable trust, you must notify the trust’s beneficiaries that the trust exists within 60 days after it is created, unless the trust agreement itself specifically provides otherwise.

What kind of trust can be changed at any time?

When someone tells you they have a trust, they are almost always referring to a “living” or revocable trust. This type of trust can be changed or amended at any time and is usually controlled completely by the “trustmaker” (i.e., the person or couple who created the trust) during his or her lifetime. There is also an irrevocable trust.

What happens to a revocable trust in a divorce?

A revocable trust, like the name implies, can have the terms changed or be completely revoked by the trust creators. An irrevocable trust, once created, is set in stone. For example, Elizabeth and Frank placed their financial accounts containing both marital and separate property in a trust and listed themselves as beneficiaries.

How are marital assets protected in a divorce?

The key to protecting marital assets in a divorce is to create an irrevocable trust. Assets that are not owned or controlled by a spouse cannot be subject to division in a divorce. Distributions from a trust of which you are a beneficiary can be protected if the proper language is used. This portion of the site is for informational purposes only.

When does a trust move from revocable to irrevocable?

While trust beneficiaries can sit back and wait for a trust to go from revocable to irrevocable, they should ideally stay on top of the trust. Per state law, they must be informed by the trustee within 60 days that a trust has moved from revocable to irrevocable.

Can a trustee amend an irrevocable trust agreement?

If the law applies to your trust, your attorney can amend your trust agreement to dispose of the reporting requirement, but not to prevent the obligation of a trustee to provide reports to beneficiaries that are reasonably related to the trust’s administration. Remember, though, that it is too late to amend a trust that is already irrevocable.

What was not included in the Arizona Trust Law?

One part of the UTC which Arizona did not adopt was a provision that would allow all of the parties to an irrevocable trust, (e.g., Grantor, Trustee and the beneficiaries) to enter into a separate written agreement and modify the provisions of the irrevocable trust.

Can a trustee terminate a trust in Arizona?

Legislature Dramatically Revises Arizona Trust Law. In addition, the ATC provides that a Trustee can, upon notice to all “qualified” beneficiaries, terminate an irrevocable trust with a value of $100,000.00 or less, provided the assets are distributed in a manner consistent with the purposes of the trust.