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This brief video summarizes the mechanics of an Arizona-based asset protection trust. Although Arizona law does not permit the use of self-settled asset protection trusts like some other states do, an Arizona resident may establish an Arizona-based irrevocable trust that provides asset protection for all parties involved. The key to making it work is to name other people as beneficiaries of your trust, such as your spouse and/or children, while prohibiting distributions to yourself.
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FIRST, I will give you a premium experience, and you will work directly with me.
SECOND, my process will help you accomplish a very important task in a relatively brief amount of time. I do this by asking a series of precise questions, explaining your options in a concise manner, and then using technology to build your estate plan with the highest quality tools and techniques. THIRD, estate and trust law is a very formidable beast to tame, but rest assured, I aspire to mastery of the subject matter. Determine how the asset is titled:
*It is a good practice to wait several months before removing the deceased owner’s name from the primary checking account in case there are payments made to the deceased owner after death. **If the will governs, the asset is subject to probate; however, the asset might qualify for the use of a small estate affidavit instead of the usual probate procedure. Always check whether a small estate affidavit will work before proceeding to apply for appointment as personal representative (aka probate). Determine how asset will be distributed:
*If the beneficiary trust already exists (which is unusual), then use the name, date, and tax ID number for the trust when retitling the asset. If the trust must be established, then you will need to give the new trust its name, date, and tax ID number before moving an asset into the trust. Usually, this process is formalized with a trust certification document. Attention business owners: If you're the owner of a business, you will need to file the new Beneficiary Ownership Information form (BOI). There are exceptions, but you probably won't qualify for any of them. The purpose of the BOI is to help the federal government combat money laundering and other illegal activities. You can find the form online at www.fincen.gov/boi and it's relatively easy to complete. It took me about 10 minutes the first time I used it for myself. The only tricky part is needing to upload a photo image of your driver license or passport. I already had a saved image of my passport on my computer, so I had no trouble with that step. There is no fee and there is no annual filing requirement. But you will need to resubmit the BOI form if you move or there is a change in business ownership.
Note: A "beneficial owner" is an individual that directly or indirectly exercises substantial control over the reporting company or an individual who owns or controls 25% or more of the reporting company's ownership interests. A beneficial owner does not include an employee who only acts as an employee.
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AuthorTom Bouman, Attorney Archives
June 2024
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