CRAFTING YOUR TRUST WITH A PHOENIX, ARIZONA TRUST ATTORNEY: WHAT TO INCLUDE

When you’re working with a Phoenix, Arizona trust attorney, it’s crucial to understand what you can include in your trust document.  Let’s explore the variety of instructions or restrictions that can make your trust truly yours, ensuring your legacy is managed just the way you envision.

TAILORING YOUR TRUST:  A GUIDE TO RESTRICTIONS

Creating a trust allows you to set specific terms for how your assets are distributed.  Whether it’s encouraging educational pursuits or setting age-based milestones, your trust can reflect your values and goals.  Here are some important guidelines that you may wish to consider:

1. Financial Milestones or Life Events

• Educational Achievements: It’s possible to specify that beneficiaries will only receive a portion of their inheritance upon completing certain levels of education.
• Age-Based Distributions: Commonly used, these conditions release funds at significant ages, like 25 or 30.  Many clients set these up to release one third of the funds at age 25, the next third at 30, and the remainder at age 35, but you can select any ages you’d like.

2. Conditional Distributions

• Marriage or Parenthood: You might include conditions like marriage or the birth of a child before financial distributions are made.
• Career Achievements: Encourage professional development by tying distributions to career milestones.
• Substance Abuse: Discourage substance abuse by setting conditions regarding treatment or abstinence.

CUSTOM CLAUSES FOR UNIQUE FAMILIES

Also keep in mind that every family is different, and your trust should reflect that as well.  From incentivizing charitable giving to protecting assets from external threats, you can tailor your trust to fit your family’s unique needs and values.  Here are some custom guidelines that you may also wish to incorporate into your plan:

1. Incentive Clauses

• Charitable Giving: Motivate philanthropy by matching charitable donations made by beneficiaries.
• Financial Responsibility: Reward responsible financial behavior, like prudent saving or investing, in the terms of your trust.

2. Protection Clauses

• Spendthrift Clauses: These clauses protect your assets from a beneficiary’s potential creditors.
• Divorce Protection: These clauses allow the assets to be held in a trust created for your beneficiaries so that the funds remain their separate property, and can be protected in the event that your beneficiary gets divorced.
• Discretionary Trusts: Allow your trustee to make distributions based on the beneficiaries’ current needs and circumstances.

COMMUNICATION:  THE HEART OF A SUCCESSFUL TRUST

No matter what guidelines you choose, effective communication is key to a successful trust.  Discussing your trust plans with your family can help manage expectations and maintain harmony.

WORK WITH A PHOENIX, ARIZONA TRUST ATTORNEY TO CREATE A PLAN THAT MEETS YOUR NEEDS

Creating a trust is a personal and important decision. With the right guidance and thoughtful planning, your trust can be a powerful tool to manage your legacy and support your loved ones.  If you have more questions or need further information, feel free to contact our Phoenix, Arizona trust attorneys to schedule an appointment.  We are here to guide you through these critical decisions so that you can create a comprehensive plan that protects your family and assets.