What is a Testamentary Trust in Phoenix?

Testamentary trusts are trusts that are created by the grantor’s will. They do not become effective until after the grantor has passed away. Assets are transferred into the testamentary trust by the executor according to the instructions in the will.

Does a Testamentary Trust Avoid Probate in Phoenix?

Testamentary trusts do not avoid probate in Phoenix, Arizona. Probate is the legal process through which the probate court verifies the authenticity of a will, names an executor, and oversees the administration of the estate. Probate can be a long and expensive process. Furthermore, everything that goes through probate becomes part of the public record.

Once your executor establishes the testamentary trust, the probate court will regularly check in to verify the execution, resulting in additional fees. If you are interested in how to avoid probate, you should contact Nicole Pavlik Law Firm to discuss potential options, like a living trust.

What are the Benefits of a Testamentary Trust in Phoenix?

The greatest benefit of a testamentary trust is that it ensures a trustee will manage the deceased’s assets. Many individuals find testamentary trusts most useful when leaving an inheritance to young beneficiaries. Instead of receiving the inheritance outright in a lump sum, the trust can instruct the trustee to pay out the assets only when certain conditions are met. For example, the trust can require that the funds be used only for educational expenses until the beneficiary reaches age 27 when they receive the balance.

Another advantage of a testamentary trust is that it can be modified at any time without restriction. Irrevocable trusts, in comparison, cannot be modified or revoked after they are created.

How Do I Create a Testamentary Trust in Phoenix?

If you are interested in including a testamentary trust in your Phoenix estate plan, you should contact Nicole Pavlik, a qualified estate planning lawyer. She can answer all your questions and help you decide whether a testamentary trust is a good fit for your estate plan.

When you work with an estate planning lawyer, you can be sure that your testamentary trust meets Arizona’s regulatory requirements and that your property will be properly distributed. If your testamentary trust is not established correctly, it can cause confusion and lead to fighting and unwanted outcomes.

Your Phoenix Estate Planning Attorney

Nicole Pavlik is an experienced Phoenix estate planning attorney who will help you create a comprehensive estate plan. If you have questions about estate planning, call Nicole Pavlik Law Firm today at (602) 635-6176 for a free consultation.