Arizona Estate Planning FAQ
1. Does it matter that the address of my health care agent may change over time?
Your agent’s address, which appears on the health care directives, doesn’t really matter all that much. In a medical emergency, the doctors likely will phone your designated health care agent at the number shown on the document, not send him or her a letter. If your agent changes their address or phone number, you may wish to update the information on the health care directive by using a sticky note affixed to the document.
2. I have a term life insurance policy. Any adjustments to take into consideration for a trust?
You may consider naming your trust as the beneficiary under the life insurance policy. Then, the life insurance proceeds will be distributed pursuant to the terms of your trust. Alternatively, you may name the beneficiaries individually under your life insurance policy, and they will receive their distributions directly from the life insurance company.
3. Does my son require a bond for being a future trustee?
It is your choice whether you will require a bond for your son to serve as trustee, but most people do not require that a child post a bond to serve as trustee.
4. What do I do regarding assets in my trust that are protected by insurance, e.g., my house. Since it is now incorporated into the trust, do I contact my insurance company to make adjustments to reflect the trust’s name instead of my name.
Yes, you should notify your insurance company to report the change of ownership. The trust likely will be added as an additional insured under your policy.
5. When I die, my oldest son will become the trustee. Is the trust now revocable by him?
Once you pass away, your revocable trust becomes irrevocable and your son will administer the trust as it stands on the date of your death, including any amendments thereto.
6. Does my trust provide liability protection?
A revocable trust, which is the most common type of trust, does not provide liability protection. For liability protection, consider putting your assets into a limited liability company, or creating an irrevocable trust.
7. What are the options for rental property when creating a trust?
You may either put the rental property into the trust, or create an LLC to hold title to the rental property, in which case the trust would own the LLC. The latter provides liability protection, while the former does not.
8. Why create a trust instead of a Will only?
A trust is a way to dispose of assets outside of probate after you die.