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Are you thinking about creating a trust? While choosing the type of trust you want and ensuring its terms are structured to benefit you are important, the name of a trust can also have significant implications. An estate planning lawyer from Pennington Law, PLLC can walk you through the process of setting and naming a trust. Contact us today for a free consultation.

Why Choosing the Right Trust Name Matters

Your trust’s name will determine its legal identification on documents, property deeds, bank accounts, tax returns, and other official documents. Choosing the right trust name can help you identify your trust when working with other parties. When your estate plan includes multiple trusts, the trust’s name can help you distinguish between your trusts by their purpose or date of creation.

Additionally, a well-chosen name can influence how others perceive the trust, which could be important if your trustee will do business with others (e.g., leasing commercial property owned by the trust). Finally, choosing the right name can help preserve privacy and confidentiality, which may become necessary if the trust holds high-value assets.

Key Factors to Consider When Naming a Trust

An experienced estate planning lawyer can offer guidance on how to name a trust. At Pennington Law, PLLC, our trust attorneys recommend:

  • Selecting a short, effective name – Keeping the trust’s name short can help avoid typographical errors in legal documents that may create unnecessary delays or expenses to fix.
  • Acknowledging the trust’s purpose – In some cases, you should incorporate the trust’s purpose into its name. For example, if you establish a trust to manage your family’s wealth, you might use the phrase “family trust” in the trust’s name. However, you should also consider whether the trust’s purpose may evolve, which could potentially confuse other parties.
  • Distinguishing between multiple trusts in an estate plan – When your estate plan has multiple trusts, you can differentiate between them by incorporating the trust’s purpose in the name. If multiple trusts serve similar purposes, you can also include the year of formation to distinguish between them.
  • Avoiding creative or whimsical names – Cute or fun names may adversely affect how other parties view your trust when doing business with it.
  • Avoiding trademarked names – You should also avoid incorporating trademarks in your trust’s name unless you have a legitimate reason (e.g., sharing a last name with a famous trademark).

Types of Trusts and Trust Name Examples

Individuals and families may utilize different trusts based on their estate planning goals. Common types of trusts include:

  • Revocable/living trusts – A revocable or living trust enables the management of assets during the grantor’s lifetime and facilitates the distribution of assets after their death.
  • Irrevocable trusts – People may use irrevocable trusts to protect assets from creditors, reduce estate taxes, or secure other financial advantages or benefits.
  • Special needs trusts – A special needs trust can help a disabled individual qualify for means-tested government benefits to cover the cost of long-term care.
  • Medicaid trusts – Individuals and couples may create Medicaid trusts to qualify for long-term care benefits under Medicaid’s strict asset limits.
  • Asset protection trusts – Asset protection trusts, such as spendthrift trusts, can safeguard assets or inheritances from liabilities, legal claims, or a beneficiary’s poor financial habits.
  • Charitable trusts – Families may use charitable trusts to manage their charitable giving and leverage the tax benefits of gifting for estate planning purposes.

Trust names typically incorporate the family name of the grantor who creates the trust. Names also usually refer to the trust’s purpose or the type of trust.

For example, a grantor from the Smith family who creates a living trust may name it the “Smith Living Trust.” Alternatively, if they set up a trust to manage their retirement investments, they may name it the “Smith Retirement Trust.” When a family creates multiple trusts, they may name each trust with the year of creation, such as the “Smith Family 2024 Trust” and “Smith Family 2025 Trust.”

Common Mistakes to Avoid When Naming a Trust

Common mistakes that individuals and families may make when naming a trust for their estate plan include:

  • Using too long of a name – The longer the trust’s name, the greater the risk of typos when writing the name on legal documents, which can have significant consequences. Getting it right the first time can save money and prevent future issues from arising.
  • Not using consistent naming across all documents related to the trust – If a grantor creates the “Smith Family 2025 Trust,” alternating between the “Smith Family 2025 Trust” and the “Smith Family Trust” in legal documents can create confusion and administrative errors.
  • Using trademark names without justification – Naming a trust with a famous trademark, such as calling a trust the “Sears Commercial Trust,” can lead to legal issues, including infringement claims from the trademark holder or legal disputes with parties who do business with the trust who may claim that the trust name misled them.
  • Using too specific a name – A family may name a trust the “Smith Family Educational Trust” to manage investments for their children’s educational expenses. However, if the family later uses the trust to manage family wealth after their children graduate, the trust’s name can become confusing.

How to Rename a Trust in Arizona

Renaming a trust in Arizona depends on the type of trust. For revocable trusts, the grantor can execute a trust amendment that changes the trust’s name. However, for irrevocable trusts, the trust’s beneficiaries must unanimously agree to a name change. Furthermore, changing a trust’s name can have other administrative requirements, such as changing the trust’s name on financial accounts and deeds or titles.

Need Help? Contact an Arizona Trust Attorney for a Free Consultation

Setting up a trust is an excellent way to protect your assets and preserve your wealth. Getting the right legal advice can help ensure you develop a comprehensive estate plan that positions you for long-term financial success and provides for your heirs according to your intentions. Reach out to the experienced estate planning attorneys from Pennington Law, PLLC to learn how a trust can benefit you. Call or contact our law firm now for a free consultation.