Estate Planning & Retirement Planning | Four Peaks Planning

Phone: (480) 229-6220

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A growing number of people are finding that Revocable Living Trusts satisfy a number of needs not covered by a common last will and testament. Common reasons for a Revocable Living Trust package include:

Living trusts and wills in our estate plans provide guardians/guardianship for children, avoid probate and power of attorney. We also provide retirement and insurance services. Services offered throughout Arizona including Phoenix, Scottsdale, Mesa, Chandler, Gilbert and Tempe.

Durable (Medical & Financial) Powers of Attorneys appointed
Guardians of dependent minors appointed
Simpler to manage distributions to young beneficiaries
Maximization of estate tax exemptions allowable
Very difficult to contest compared to a will
Probate does not occur

	Power of Attorney or Living Trust	Without Power of Attorney
Incapacitation / Conservatorship If you are mentally or physically incapacitated you may need or be appointed by the courts someone to manage your affairs, such as accessing keeping bills paid or running a business.	They must follow strict guidelines written in your living trust for maintaining your affairs and assets.	A conservator is appointed when a court decides that you cannot make basic decisions. The courts step in to prevent someone from taking control of your assets and misusing them. At this point, your records and proceedings are open to the public. The court costs, legal bills, fees and bonds can be taken from your estate.
	Living Trust	Durable Power of Attorney
Power of Attorney Appoints medical and financial decision- making powers	The successor trustees of a trust act in place of a financial power of attorney. Working with banks and financial institutions is typically easier. Third parties such as banks are often more comfortable dealing with a successor trustee than they are dealing with a durable power of attorney.	Important for medical reasons but dependable for all financial needs. A durable power of attorney has a few downsides if used alone. Some banks and financial institutions require custom power of attorney forms to be signed. Another downside is the easy access a durable power of attorney will have. This could open up the risk to giving someone access to your funds without accountability.
	Living Trust	Last Will and Testament
Likelihood of Probate	None, if assets are properly placed in the trust.	Gross estates: less than $100,000 unlikely, $200,000+ very likely require probate.
Average Length of Probate	No Probate, if assets are properly placed in the trust.	6 months to 2 years depending on the complexity of the estate.
Average Cost to Pass Your Estate to Your Beneficiaries	Many attorneys and firms charge $1000-3000 for a Living Trust. Four Peaks Planning, Inc.'s attorneys will prepare your Revocable Living Trust for only $750.	3% to 10% of your gross estate. If you home is worth $150,000 and you have $150,000 in other assets, your heirs could lose between $9000 and $30,000 due to court fees and attorney fees. A will normally costs $400-700.
	Living Trust	Last Will and Testament
Privacy	Yes.	No. Your files can be accessed through the records office upon your death or in case of conservatorship.
Control of Assets	Yes. You have full control of assets just as you hold them now.	Yes.
Can Changes Be Made During My Lifetime?	Yes. Revocable means the original creators of the trust (you) can change the language at any time.	Yes.
Guardianship of Minors	Yes.	Yes.
Maximize Federal Estate Tax Exemptions	Yes.	No.
Ease of Contesting by an Omitted Heir	Trusts are very difficult to contest. To invalidate a living trust you would have to prove the trust's creator was under duress not only on the day it was signed but each and every day it was in existence thereafter. Assets in a living trust are not frozen during a legal challenge.	To invalidate a will you must either prove it was signed under duress or that the maker was incompetent on the day it was signed. During a legal challenge the assets are frozen and cannot be distributed until the claim is resolved.

For a printable version of this chart

Essentially, you transfer ownership of your assets to the trust so that when you pass, you own no assets so there is nothing to go through probate.

Your trust owns all the assets. Yet you still control all the assets in the trust just as you did before you created the trust. You (and a spouse) serve as:

The Trustee(s) of your trust, responsible for managing all the assets in the trust for the benefit of the trustors.
The Trustor(s) of your trust, the only one(s) able to make changes to the trust's language.

The most important step in setting up a trust is transferring your assets to the trust immediately after your Living Trust has been signed. This is a simple process that takes less time than one would imagine. Four Peaks Planning, Inc. helps you through this process.

To print our Pre-Planning Questions

Summary:

Powers of Attorney appoint persons for medical and financial decisions
Living Wills state your intentions regarding the use of life support
Probate is the court process of changing title of assets to beneficiaries
Probate typically lasts 6-18 months and costs 3%-10% of the estate value
Your probate estate includes the full value of real estate
Properly funded Revocable Living Trusts avoid probate
Revocable Living Trusts from Four Peaks Planning, Inc. are only $750.

If you have questions or would like to learn more, please call (480) 229-6220 or send a message by clicking the email address above.

Important: Please consult with Four Peaks Planning, Inc. before undertaking any actions. The information in this web site is provided with the understanding that the publisher is not engaged in rendering legal, tax or investment advice. While every attempt has been made to provide current and accurate information, neither the author nor the publisher can be held accountable for any errors or omissions. You agree not to hold any employee of Four Peaks Planning, Inc. liable for action you take from the information on www.fourpeaksplanning.com.