Legal Question in Wills and Trusts in Arizona

I'm in a gay relationship. We jointly own free and clear a car, truck (combined worth over 40k), a mortgaged investment home in AZ, and I personally have an annuity worth 60-90K. We purchased a 5th wheel trailer in which we travel and owe 60k on a 20 year loan. I'm retired and my partner has worked in a job requiring travel. I'm living on SS, annuity payments and a small retirement. While he worked we were doing fine, but he was recently laid off and may not find a job soon and the trailer payments will be difficult to maintain. We also realize that in 18 years (the remaining time of the trailer payments) this trailer will be worthless. Would putting our assets in a living trust make us immune from the bank if we stop making payments on the trailer and begin living in our rental house? We realize now that it was crazy to make a 20 year loan on a trailer, but then so was the bank. What were we all thinking? Any advice on how to proceed will be appreciated.


Asked on 12/18/09, 8:43 am

1 Answer from Attorneys
Donald Scher Donald T. Scher & Associates, P.C.

No, the creation of a trust will not provide any protection against creditors. I suggest that you get some financial planning advice and determine whether to sell the 5th wheel and what to do with your assets and income, so that you have some level of comfort that you can survive this economy and the new taxes being imposed on us.

I strongly suggest that both of you create durable powers of attorney, both healthcare and financial, so that you have provided legal authority to take care of one another in the case of accident or illness, and if you are both in the same car accident, someone else should have authority to make decisions for you and keep your household together.

Also, it is very important to have a cohabitation agreement which will avoid an expensive fight if you break up or cannot provide for one another, and similarly, you should consider making Wills.

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Answered on 12/23/09, 9:12 am


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