Families with substantial assets often wonder: At what net worth do I need a trust? In Arizona, trusts are essential once an estate reaches several million dollars. They protect wealth, reduce taxes, manage risk, and prevent disputes. The right high-net-worth trusts can preserve harmony and turn uncertainty into order.
At Theut Scaringelli & Kupiszewski P.L.C., our attorneys bring decades of experience in probate and trust litigation to these questions. Our work in Arizona probate courts and judicial insight from Stephen Kupiszewski’s years on the Superior Court Bench positions us to craft and defend tailored estate plans. If you need guidance or want to establish the right strategy for long-term protection, we’re happy to help you from start to finish.
High-Net-Worth Trusts: What Types of Trusts Are Available for High-Net-Worth Estate Planning?
Arizona families exploring high-net-worth estate planning often start with a simple question: Which trust fits their goals? Below are some of the trusts most often used to protect assets, minimize taxes, and preserve family harmony.
Revocable Living Trusts: The Foundation
A revocable living trust is a legal arrangement where the creator (called the grantor) transfers ownership of assets, such as real estate, investment accounts, and business interests, into the trust during their lifetime. The grantor typically serves as trustee, meaning they keep complete control over those assets while alive. Upon death or incapacity, a successor trustee takes over management and distributes property according to the grantor’s instructions.
In Arizona, this structure offers two key benefits: avoiding probate and maintaining financial privacy. Probate in counties like Maricopa can take months to complete, adding delays and increasing court costs. A revocable trust sidesteps that process, ensuring heirs receive their inheritance more efficiently.
Irrevocable Trusts: Protecting Assets and Cutting Taxes
When protection matters more than flexibility, an irrevocable trust is the tool of choice. By placing assets beyond personal ownership, families gain creditor protection and estate tax benefits.
Federal law exempts $13.99 million per individual in 2025 and will decrease in 2026 unless Congress takes action. Although Arizona imposes no state estate tax, the federal threshold is critical for substantial estates. Irrevocable trusts can move appreciating assets out of the taxable estate. For families exploring high-net-worth trusts, this step often makes the difference between paying millions in taxes or keeping wealth available for heirs.
Dynasty Trusts: Generational Planning
Some families want their wealth to last more than just one or two generations. Under the Uniform Trust Code, Arizona allows dynasty trusts to remain valid for up to 500 years. That means a well-drafted trust can preserve real estate, businesses, or investments far beyond a single lifetime.
The strength of a dynasty trust lies in shielding assets from divorce, lawsuits, and creditors of future generations. For families building legacies, it ensures grandchildren and great-grandchildren inherit stability, not chaos.
Charitable Trusts: Giving with Purpose
Philanthropy and estate planning often go hand in hand. Charitable trusts provide a means to support causes while also benefiting family members. Two common forms include:
- Charitable remainder trust (CRT). Pays income to the donor or family during life, with the remainder going to charity.
- Charitable lead trust (CLT). Sends income to charity first, with the remainder eventually returning to heirs.
Both options reduce taxable estates and provide significant income tax deductions. For families balancing generosity with preservation, charitable trusts create an enduring impact while protecting core assets.
Special Needs Trusts: Protecting Vulnerable Beneficiaries
Not all beneficiaries can manage an inheritance directly. A child with disabilities, for example, may risk losing eligibility for Supplemental Security Income or Medicaid if given assets outright. A special needs trust solves this problem. These trusts enable funds to cover supplemental needs such as housing, therapy, and travel without disqualifying the individual from government assistance. For families facing this challenge, it ensures dignity, care, and long-term security.
Tax-Driven Trusts: Precision Tools for High-Net-Worth Estate Planning
Some trusts focus narrowly on taxes, offering high-value savings in the right circumstances:
- Grantor retained annuity trust (GRAT). Allows appreciation to pass to heirs at minimal tax cost while the grantor receives annuity payments.
- Qualified personal residence trust (QPRT). Transfers a home to heirs at a reduced value, shrinking estate exposure.
- Irrevocable life insurance trust (ILIT). Keeps life insurance proceeds outside the taxable estate, ensuring liquidity for tax payments or other expenses.
Each trust plays a role in comprehensive high-net-worth estate planning, particularly for estates exceeding federal thresholds.
At What Net Worth Do I Need a Trust?
There isn’t a single number that triggers the need for a trust, but in Arizona, families with estates worth more than $1 million often benefit from establishing one. They are especially valuable for high-net-worth estates because they provide tax efficiency, asset protection, and smoother succession planning. Trusts can prevent costly probate and protect privacy even below the federal estate tax exemption.
Theut Scaringelli & Kupiszewski P.L.C.: Arizona Counsel for Complex Estates
Legal guidance makes a significant difference for Arizona families wondering when they might need a trust or which high-net-worth trusts will best serve their estates. As one of Arizona’s most experienced probate and trust litigation firms, Theut Scaringelli & Kupiszewski can give you that guidance.
With decades of combined experience in probate courts, our attorneys offer clients a unique blend of practical knowledge, judicial insight, and litigation experience. Our work spans high-value estates, guardianships, conservatorships, and financial exploitation disputes, and we always focus on bringing order to complex family and financial matters.
If you’re ready to safeguard your estate and protect your family’s future, call us today to schedule a consultation.
