Although many states permit self-settled asset protection trusts, Arizona law does not. But you can still establish an Arizona irrevocable trust with asset protection features:
You may contribute assets to an irrevocable trust for benefit of your children. The trust assets will be protected under Arizona law from the creditors of you and your children. Unless you need to exclude the assets from your taxable estate for estate tax purposes, you may serve as trustee and also retain a power to redirect the assets to different beneficiaries upon your death. This is called a testamentary limited power of appointment. The trust assets will be included in your taxable estate, but they will get a full step-up in income tax basis upon your death.
If you are married, you may include your spouse as a lifetime beneficiary of an individual irrevocable trust as long as contributions are separate property. This would permit your spouse to have continued access to the trust assets during your lifetime.
You can also give an independent trust protector the power to move the trust to a state that permits self-settled asset protection trusts, which would permit the trust protector to add you as a beneficiary.
Thomas J. Bouman