This type of trust is called a "self-settled trust" and the person who creates the trust and transfers property to the trust is called the "settlor." The concept that you cannot create a trust to defeat your creditors is codified in Arizona Revised Statutes Section 14-10505(A)1 that states, "During the lifetime of the settlor, the property of a revocable trust is subject to claims of the settlor's creditors." Arizona Revised Statutes Section 14-10505(A)2 states, ". . . with respect to an irrevocable trust, a creditor or assignee of the settlor may reach the maximum amount that can be distributed to or for the settlor's benefit."
A Lima Arizona Irrevocable Trust for Lifetime Benefit of Trust or Covering Family Residence is a type of trust that provides lifelong benefits to the trust or and their family by safeguarding their family residence. This legal arrangement ensures the proper management and controlled use of the family home while protecting it from potential issues such as creditors, estate taxes, and probate. The Lima Arizona Irrevocable Trust for Lifetime Benefit of Trust or Covering Family Residence offers various advantages and additional forms, including: 1. Asset Protection Trust: This type of trust shields the family residence from any potential creditors or legal claims. By placing the property in an irrevocable trust, the trust or can safeguard it for the benefit of their family members while maintaining a degree of control. 2. Estate Tax Planning Trust: With this form of trust, the trust or can efficiently manage their estate taxes while securing the family home. By transferring the property to the trust, the trust or can potentially reduce the estate tax liability on the residence, ensuring the maximum benefit for their loved ones. 3. Medicaid Trust: This trust type allows the trust or to preserve their residence while also qualifying for Medicaid benefits. By transferring the family home to an irrevocable trust, the trust or can protect the asset, potentially avoiding excessive spend-down requirements for Medicaid eligibility. 4. Special Needs Trust: In situations where the trust or has a family member with special needs, this trust ensures that the family residence is protected while allowing the special needs individual to remain eligible for government benefits. This type of trust provides for the care and support of the loved one, without jeopardizing their governmental assistance. The Lima Arizona Irrevocable Trust for Lifetime Benefit of Trust or Covering Family Residence is a versatile legal tool designed to cater to various specific needs. Whether seeking asset protection, estate tax planning, Medicaid eligibility, or support for loved ones with special needs, this trust provides customizable solutions to ensure the long-term benefits and security of the trust or and their family home.
Para su conveniencia, debajo del texto en español le brindamos la versión completa de este formulario en inglés. For your convenience, the complete English version of this form is attached below the Spanish version.
