A Guide to Life Insurance Trusts Gilbert, AZ

Life insurance safeguards families against financial instability after a loved one dies. The proceeds from these policies can be used to cover medical bills, burial costs, college tuition, and daily living expenses for surviving family members. Because the stakes are so high, many people establish extra protection for their life insurance policies.

If you want to rest assured that your family will have the financial resources they need after you’re gone, contact our attorneys at Walk-In Wills today. We can walk you through the process of life insurance trust creation using our extensive legal experience.

Understanding Life Insurance Trusts

A type of irrevocable trust, life insurance trusts contain one asset: a person’s life insurance policy. In this case, the trust becomes the owner of the life insurance policy, which can offer several key benefits:

Greater control over how the funds from the life insurance policy are used
Protection against possible financial issues related to estate taxes
Assurance that loved ones will receive the asset after you’re gone

It’s possible to name a beneficiary on life insurance policies, which means that the person will receive the proceeds from the policy according to your wishes. However, a life insurance trust offers additional protections that aren’t available when naming a beneficiary on the policy itself.

Frequently Asked Questions

1. What is a life insurance trust and why might I consider one?

A life insurance trust is a special kind of trust that owns a life insurance policy so that when you pass away, the proceeds are managed through the trust rather than going directly to a beneficiary. This can give you more control over how the money is used and help protect it for your loved ones in the way you want. At Walk-In Wills, our attorneys explain how these trusts work and help you decide whether it’s right for your situation.

2. How does Walk-In Wills help with setting up a life insurance trust?

Our team will talk through your goals and explain how a trust might benefit your family, then handle the legal drafting and setup for you. That includes preparing the trust documents and walking you through next steps so you understand how the trust will operate under Arizona law.

3. What advantages does placing a life insurance policy in a trust offer compared to naming a beneficiary on the policy itself?

Putting a policy into a trust can offer extra protections you don’t get just by naming a beneficiary — for example, it lets you specify how and when funds are used, and can help keep the proceeds out of the estate for tax or legal purposes, giving your family clearer instructions and fewer hassles later.

How to Create a Life Insurance Trust

If you live in Gilbert, Apache Junction, or Phoenix, AZ and have questions about trust creation, we encourage you to reach out to Walk-In Wills today. Clients who work with our firm will benefit from the following:

We have more than two decades of experience, which means we can handle complex issues
Our legal services rival the quality of higher-end law firms
We provide our services in a relaxed and soothing environment
We strive to make our services affordable for all clients

If you’d like to learn more about trust creation, please call (480) 470-7000 to schedule a free consultation. You can also contact our firm for more information before getting started.