Living Trust "Flat Tires"
Trust has Two
As your read this page, pretend
that your Living Trust is an automobile.
What caused the flat tires?
The Arizona Legislature enacted the Arizona Trust Code which became effective January 1, 2009. Additional Modifications and changes were made in July, 2009. It is massive legislation which rewrites Arizona trust law. The Arizona Trust Code applies to all irrevocable trusts no matter when they become irrevocable. That means that the Arizona Trust Code also has direct impact on your Living Trust because your Living Trust can only be amended before it becomes irrevocable - and your Living Trust will become irrevocable. Some of the new state laws in the Arizona Trust Code can have a very negative effect on the original purpose of your Living Trust.
However, the Arizona Trust Code allows you to amend your Living Trust so that many of these negative features do not apply to you. NOTE - All of the negative laws are automatically applied to your Trust- unless you amend your Living Trust.
Amending your Trust replaces your flat tires with brand new High Performance Tires!
What happens if you do nothing?
You may still be able to drive your car on the flat tires, but it will be a rough ride. Also, it may not get you to where you want to go. Who suffers if you fail to act and amend your Trust? Everyone you care for!
|If your Living Trust "automobile" was built prior to January 1, 2009, it now has two flat tires. The good news is that they can be fixed - but, you need to take action!|
HERE IS THE BAD NEWS:
This bad news can be avoided if you amend your Living Trust immediately!
Your surviving spouse may be forced to disclose financial information of your own assets and justify his/her spending and financial decisions to your children and other beneficiaries, perhaps due to prodding by their spouses or other so called, "interested persons."
Your children may be forced to disclose financial information about their inheritance and justify their spending and financial decisions to your grandchildren and other beneficiaries.
Remember, demands often come from in-laws who influence their spouse (your child or grandchild) to demand further financial information, justification of spending, and justification of investment decisions, and then use that information to demand control of future spending and investment decisions. That same information can be used to file lawsuits against your spouses, children and other beneficiaries.
The legislature has indicated that the above requirements are in effect against all Trusts unless the Trust states they are not in effect. Your current Living Trust must be amended now to avoid these requirements once it becomes irrevocable - and it will become irrevocable.
NOW THE GOOD NEWS:
The new laws allow you to put space-age protective bumpers on your Living Trust "automobile" to protect your passengers (spouse, children, or other loved ones) against creditors, divorces, ex-in laws, and predators!
This is amazing legal protection for your loved ones!
Your surviving spouse can have predator and creditor protection in a by-pass Trust, but still have use of all of the assets in the by-pass Trust!
You can protect your children's inheritance from creditors!
You can protect your children's inheritance from judgment liens!
You can protect your children's inheritance from divorce!
You can protect your children's inheritance from the ex in-laws new significant other!
The Arizona Trust Code now provides for a statute-backed Certificate of Trust with enforceability making the day-to-day use of your Living Trust much easier.
Arizona statutes now allow you to name a special person of your choice who, after you die, can make "administrative" changes (not distributions or beneficiary changes) to your then Irrevocable Trust which can help care for your loved ones in the manner you intended.