What is a Trust?

Trusts influence life and death by immediately taking effect upon your signature, a Trust streamlines the process for those in your circle. However, unlike a Will, a Trust not only prepares for posthumous matters but also serves as a tool with relevance during your lifetime. It can establish provisions for scenarios where you may become incapacitated, whether mentally or physically, sparing loved ones from confronting difficult decisions. Crucially, a Trust ensures the clarity of your wishes, both while you are alive and after your passing, alleviating the stress of uncertainty for those tasked with making decisions on your behalf.

Planning for the future holds immense significance, yet the process can seem daunting. Where does one even begin?

With numerous facets to consider, it's common for individuals to postpone estate planning, thinking, "I'll address it later..." However, this approach carries risks. If you were to lose the ability to make decisions independently without having a plan in place, the burden and stress would inevitably fall upon your loved ones as they navigate decision-making on your behalf, hoping to align with your wishes. Crafting an Estate Plan emerges as a genuine gesture of care for your family and friends.

Thankfully, you need not navigate this journey alone. Harn Legacy stands by you every step of the way. We assist in selecting the appropriate Estate Plan tailored to your unique circumstances and aspirations.

What is the Difference Between a Trust and a Will?

A Will is a document that you execute now, but that does not become effective until your death. A Will sets forth how your property should be distributed, including whether all or some of such property should be held in trust, and who should be in charge of that distribution and administration process. So long as you continue to have capacity, you can continue to revise and update your Will over time to ensure that your wishes are accurately reflected.

A Trust, on the other hand, generally serves the same purpose as a will in terms of instructions but becomes effective once you execute the same. This means that you will likely need to take steps to title your property in the name of your Trust once you have signed the trust agreement; additionally, you will need to ensure that your property remains titled in the name of the Trust as you sell and exchange property going forward. Whether or not you may change your Trust agreement will depend on whether you set up a revocable or irrevocable trust. While a revocable trust will fit the needs of most clients, an irrevocable trust may be considered for a variety of reasons, including estate and gift tax planning for the benefit of your loved ones. To the extent you make a Trust a component of your estate plan, you will generally need a companion will to go along with the Trust to ensure that any property remaining in your name, individually, upon your death is ultimately transferred to your Trust for distribution purposes.

Helping You Choose Between a Will and a Trust

Many individuals are perplexed by the purpose and function of a Will and a Trust. It is common to wonder which is best for you or if both are necessary when navigating the many elements of estate planning. The choices you have made throughout your life are unique, so the will or trust you build will be the same. Our team at Harn Legacy can efficiently and affordably help you make decisions that will result in the best outcome possible in the estate plan you leave for your family. Contact us to learn more about your trust options in Arizona.

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