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 Glendale Arizona irrevocable trust for the lifetime benefit of the trust or covering the family residence is a legal arrangement that provides a means for individuals in Glendale, Arizona, to safeguard their family residence while ensuring its long-term benefits for themselves and their loved ones. This type of trust is designed to protect the trust or's assets, minimize estate taxes, and maintain control over the family residence during their lifetime. The Glendale Arizona irrevocable trust for lifetime benefit of the trust or covering family residence offers various advantages in terms of asset protection, tax planning, and estate planning. By creating this trust, individuals can ensure that their family residence remains safe and provides ongoing benefits for their family members. Here are a few key types or aspects of this trust that are commonly known: 1. Medicaid Asset Protection Trust: This type of irrevocable trust allows individuals to protect their family residence from being counted as an asset when applying for long-term care Medicaid benefits. By placing the home in this trust, the individual can qualify for Medicaid coverage without having to sell their residence. 2. Qualified Personnel Residence Trust: A qualified personnel residence trust (PRT) is a type of irrevocable trust that enables individuals to transfer their family residence to their beneficiaries while reducing gift and estate taxes. The trust or retains the right to live in the residence for a specified period, after which it passes on to the beneficiaries. 3. Irrevocable Life Insurance Trust: While not directly related to the family residence, an irrevocable life insurance trust (IIT) can be used in conjunction with a Glendale Arizona irrevocable trust for the lifetime benefit of the trust or covering the family residence. It helps provide liquidity to cover estate taxes upon the trust or's death, ensuring that the family residence remains intact and protected. In summary, a Glendale Arizona irrevocable trust for the lifetime benefit of the trust or covering the family residence offers individuals a means to protect their family home, minimize taxes, and secure ongoing support for their loved ones. By utilizing different types of irrevocable trusts like Medicaid Asset Protection Trusts, Qualified Personnel Residence Trusts, and Irrevocable Life Insurance Trusts, individuals can customize their asset protection and estate planning strategies to suit their unique needs.
