Legal Question in Wills and Trusts in Arizona

Re: Funding a Revocable Trust via TOD Assets

Yes there is, you will not get any of the protections and benefits of the trust during your lifetime. This strategy leaves you vulnerable to exploitation, particularly in the case that you suffer a catastrophic accident or illness.

I hope you have a well drafted Durable Health Care Power of Attorney, and Durable Financial Power of Attorney, to that someone can act on your behalf at such time as you are not able. The statistics say that you will live to be 100 years of age, but you may be incapacitated or suffer an illness which prevents you from managing your own affairs.

Re: Funding a Revocable Trust via TOD Assets

I would add a few points to the answer previously given. Check with your mutual fund administrator. Some financial institutions will not place a POD status that names a trust. I know this from experience. Also, to do this with a Beneficiary Deed on real estate is questionable. Our beneficiary deed statute is new, not tested in court much yet, so not really any precedents. We would never advise a client to do what you are doing. If you have a trust, why not fund it now with all your assets? What is the point of not doing so?

Also, it is more cumbersome and tricky for family to handle your financial affairs with a power of attorney alone for a long period of time if you become incapacitated than with a trust.

Next point: are you married? If so, your spouse would also benefit from the trust. What is your age? Family situation? Who are your beneficiaries? Who is there to be a trustee? Agent under power of attorney? What are the terms of your trust? Do you have a pourover will? Are you a lifetime or long-time resident of Arizona? Do you have a community property agreement if not?

There a a lot of unanswered questions. That is why you might consider a visit for a free consultation with an attorney so that all concerns can be addressed. You are always welcome to speak with me as well.

Best regards,

James D. Jenkins

Mesa, Arizona