What is a Trust?
A Trust, like a will, is a written document that governs what happens to certain property when a person passes away. Unlike a will though, Trusts can also be used for providing for a person’s needs while they are still alive. There are many different types of Trusts, trusts can be simple or complex, they can be used to shield beneficiaries from creditors, they can be used for charitable purposes, trusts can even be set up to care for your pets. However, for the purposes of this article, we will be discussing a basic Revocable Living Trust. This type of trust allows a person to retain control over all of the assets in the trust and to make changes to the trust at any time. The requirements for creating a trust are governed by Arizona Revised Statute §14-10402. Generally, in order to create a trust, a person must have the capacity to create a trust, the intent to create a trust, the trust must have a beneficiary, the trustee must have duties and the same person cannot be the sole trustee and the sole beneficiary.
Does a Trust affect all my assets?