Can a Trust Protect Me From Lawsuits in Arizona?

A Living Trust that gives full “outright” ownership of the inherited assets to the beneficiaries (which is exactly what most trusts do), needlessly exposes them to the claims of ex-spouses, creditors, lawsuits, the government and estate taxes.

There’s a Better Way – Protective Inheritance Trusts
A Protective Inheritance Trust (PIT), commonly known as an Inheritance Protection Trust or a Beneficiary Protection Trust, keeps assets in the family after you die. Instead of the beneficiaries receiving their inheritance directly, why not keep the money in a special protective trust for them which springs out of your Living Trust when you die. With recent law changes, this Protective Inheritance Trust can be controlled by each beneficiary in a way that virtually gives him or her all of the same rights as outright ownership, without the liability exposures that ownership brings.

A Protective Inheritance Trust (leaving inheritance in trust) is like leaving the money in a personal vault for each beneficiary. Only the beneficiary has the key to open and close the vault at will.

At Phelps LaClair we have over 40 years experience as Estate Planning Attorneys in Phoenix.