To keep a loved one from being disqualified from government benefits, they generally need to plan gifts, inheritances, or financial assistance carefully. Gifting money or property directly to a beneficiary who receives assistance, such as Medicaid or SSI, can jeopardize their benefits due to their stringent income and asset restrictions. Knowing the gift and [...]
Selecting a trustee for a special needs trust in Arizona requires someone responsible, financially savvy, and well-versed in the guidelines of the trust. It can be a family member, a trusted friend, a professional fiduciary, or even a bank with trust services. The right decision depends on the needs of the person with disabilities, [...]
Special needs trusts work to protect Supplemental Security Income (SSI) and Medicaid eligibility in Arizona by setting up a legal way for funds to help a person with disabilities without raising countable assets above state limits. Under Arizona law, funds in these trusts do not count toward SSI or Medicaid’s asset limit, so the [...]
Most families utilize a life insurance policy to ensure their special loved one is provided for after they’re gone. A trust established in Arizona can own the life insurance or be the beneficiary. This way, the proceeds go directly to the trust. The proceeds then assist with covering care, therapy, and daily needs without [...]
There are two primary types of special needs trusts: first-party and third-party, which are designed to assist individuals with disabilities in preserving public benefits when there is additional money available. First-party SNTs utilize the beneficiary’s own assets, typically from a settlement or inheritance. Third-party special needs trusts hold money from somebody else, such as [...]
A special needs trust in Arizona is a legal instrument that allows people with disabilities to maintain their public benefits while maintaining additional wealth. The trust allows a third party, administrator, or trustee to hold and manage funds or property for the beneficiary with special needs. Because funds in the trust do not count [...]
Courts can order one side to pay the other’s legal costs in some cases, for example, where a party acts in bad faith or brings claims without any reasonable arguable foundation. You may encounter fee-shifting if a trust instrument or state law provides for it. For most trust dispute folks, who pay attorney fees [...]
If a trustee breaches their fiduciary duty in Arizona, you may see legal action, financial penalties, or removal of the trustee by the court. Trustees in Arizona are required to act in the best interest of the trust and its beneficiaries, adhere to the law, and maintain trust assets. Misappropriating trust assets or withholding [...]
A trust is legally invalid in Arizona when it does not meet the state’s rules for creation or fails to follow the required legal steps. You need an expressed intention to create trust, a lawful purpose, and a name. It has to have a definite property to take and a trustee to take it. [...]
Key Takeaways Trust management is the art of ultimate oversight and maintaining legal standards of application and management, shielding beneficiaries’ interests and wishes at all costs. Knowing its purpose is key to effective estate planning. Misconceptions such as "trusts are only for the rich" or "trusts mean loss of asset control" can lead to [...]