Do you have a considerable amount of money saved up as an inheritance for your family members? If you become incapacitated or require long-term care in a nursing home, you run the risk of spending all of your financial legacy on medical bills before you can qualify for Medicare benefits. Fortunately, you might be able to protect yourself from this kind of a situation with a strategically-planned trust.
Here are some of the most important ways that a trust could save your estate plan in Arizona:
Bypass probate and creditors: When you place assets in a trust, you give up ownership of them. As such, they are no longer a part of your estate. Creditors cannot gain access to them after you’re gone, and they don’t have to go through the probate process. Therefore, the assets you place within a trust will go directly to your intended heirs after you have passed away.
Prevent your heirs from mismanaging your legacy: Many Arizona estate planners want to leave a sizable fortune to their loved ones but are concerned that their loved ones will mismanage the assets, quickly overspend or lose the money on risky ventures. With a spendthrift trust and other creative trust-planning solutions, estate planners can dole out inheritances to their children and other beneficiaries gradually over time, thereby preserving their estates to benefit their loved ones for many years to come.
Medicare trust planning solutions: As referenced in the opening paragraph, trusts can also be beneficial to those who are concerned that long-term care and other costs will deplete their savings before they die.
These are just three ways a trust could save your estate plan — there are many others. If you would like to explore the trust planning solutions that could benefit you and your family, our law firm can help you understand your options.