Common Mistakes to Avoid When Setting Up a Living Trust in Arizona
July 22, 2025
Common Mistakes to Avoid When Setting Up a Living Trust in Arizona
Setting up a living trust is one of the most powerful steps you can take to secure your legacy and protect your loved ones from unnecessary stress, court costs, and delays. But just like any estate planning tool, a living trust must be set up and maintained properly to do its job.
At the Law Office of J. Marc Montijo, Ltd., we’ve helped countless Tucson families avoid costly errors by ensuring their living trusts are structured to serve their specific needs.
Here are the most common mistakes people make when setting up a living trust—and how to avoid them.
1. Failing to Fund the Trust
Creating a trust is only the beginning. You must also transfer your assets into the trust—this includes real estate, bank accounts, investment portfolios, and more. If your assets aren’t properly titled in the name of the trust, they may still go through probate, defeating the purpose of the trust.
Solution: Work with an experienced attorney who will help you retitle your assets and ensure everything is correctly documented.
2. Choosing the Wrong Trustee
Your trustee will be responsible for managing your assets, either upon your death or if you become incapacitated. Appointing someone who lacks the experience, judgment, or willingness to handle that responsibility can create complications.
Solution: Choose a trustee who is financially savvy, trustworthy, and able to act in the best interest of your beneficiaries. In some cases, a professional fiduciary or institution may be more appropriate.
3. Not Updating the Trust After Major Life Events
Marriages, divorces, births, deaths, or major financial changes all impact your estate. If your trust doesn’t reflect your current wishes or family structure, it can lead to confusion, conflict, or unintended outcomes.
Solution: Revisit your trust regularly with your attorney—especially after major life events—to keep it accurate and aligned with your goals.
4. Assuming a Living Trust Covers Everything
While living trusts are versatile, they don’t replace all your estate planning needs. You still need a will (to handle assets not in the trust), powers of attorney, and healthcare directives.
Solution: Build a complete estate plan, not just a trust. A comprehensive package ensures you're protected during life and after.
Let’s Get It Right the First Time
Avoiding these common pitfalls starts with choosing the right legal guidance. At the Law Office of J. Marc Montijo, Ltd., we take the time to understand your unique needs, walk you through every step, and help you establish a solid, legally sound trust.
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When many people hear the term "postnuptial agreement," they often envision a relationship in trouble or couples on the brink of separation. This legal tool can be for marriages in distress, but more happy Arizona couples are increasingly embracing postnups as a proactive method to ensure peace of mind and mutual understanding. These agreements are not about anticipating divorce but rather about strengthening the marital bond through clear communication and shared expectations. As we delve into why contented couples across Arizona are choosing to formalize their financial and personal arrangements with postnups, we'll discover how these agreements can be a practical asset in modern marriages. Postnup Misconception The idea that postnuptial agreements are solely for troubled marriages is a misconception that needs debunking. In reality, many contented couples find value in crafting these agreements as part of their long-term financial planning and marital harmony. Postnups allow partners to openly discuss and agree upon financial matters, estate planning, and other vital aspects of their lives together without any looming clouds of conflict or distrust. By establishing ground rules early on, even after marriage, couples can avert potential misunderstandings down the line—ultimately reinforcing their commitment to each other. Requirements In Arizona, where family law governs the validity of such agreements, there are specific requirements that must be met for a postnuptial agreement to hold up in court. Both parties must fully disclose their assets and liabilities voluntarily; the agreement should be fair at the time it is signed; and both spouses need adequate representation by separate legal counsel—or at least have had the opportunity to seek such counsel—to ensure that neither party is unduly influenced or coerced into signing an agreement against their will. This transparency fosters trust between partners while ensuring both have clarity over what they own individually and collectively. Promoting Life Events Several common life events prompt even happily married couples to consider drafting a postnuptial agreement. Inheritance is one significant trigger; when one spouse receives an unexpected windfall from relatives or family members, it can introduce complexities related to communal versus separate property rights under Arizona law. Similarly, business ownership often necessitates clear delineations regarding control, profits, and responsibilities within marriage—especially if one spouse brings an existing business into the union or starts one thereafter. Additionally, blended families bring unique dynamics where defining financial responsibilities towards children from previous relationships becomes essential. Statistical Trends Interestingly enough, statistical trends indicate that millennials—the generation known for reshaping traditional norms—are among those most likely to adopt postnuptial agreements today. Many millennial Tucson residents view these documents not as harbingers of doom but as intelligent safeguards protecting both individual interests and collective goals within their marriages. They appreciate transparency over finances early on because it aligns with their values around equality and shared responsibility—a pragmatic approach resonating well with many young professionals balancing careers alongside matrimonial commitments. Postnuptial agreements offer a versatile solution for Arizona couples seeking to bolster their relationships through open communication and financial clarity. Far from signaling marital discord, these agreements can serve as strategic tools that align with contemporary values of transparency and equality. By addressing potential conflicts before they arise and setting shared expectations, couples can devote their energy to fostering their emotional bonds, secure in the knowledge that their financial futures are protected. Whether prompted by life changes like inheritances or business developments, or simply the desire for prudent planning, postnups enable couples to build a solid foundation for their marriage. As more couples, particularly within the millennial generation, adapt to this progressive approach, it becomes clear that postnuptial agreements play an increasingly important role in modern marital dynamics, enhancing rather than hindering the journey of lifelong partnership.
Embarking on a franchise journey can be an exhilarating venture, offering both new and experienced entrepreneurs a ready-made business model with brand recognition and support. However, within the pages of a Franchise Disclosure Document (FDD) can lie pitfalls that could turn your entrepreneurial dream into a nightmare. From high turnover rates to unreasonable supplier restrictions, these red flags warrant your attention. At the Law Offices of J. Marc Montijo, LTD., based in Tucson, Arizona, we can guide you through these complexities. We will share some key concerns specific to Arizona franchisees and note a due diligence checklist to help safeguard your investment. Reviewing the FDD Owning a franchise is often appealing due to its promise of established success and streamlined operations. However, potential franchisees should meticulously review the Franchise Disclosure Document (FDD) before signing any agreements. A crucial warning sign to be aware of is high franchisee turnover rates. Frequent closures or changes in franchise ownership might signal systemic issues within the franchisor’s business model or inadequate support for franchisees. High turnover disrupts continuity and tarnishes brand reputation, affecting customer loyalty and profitability. Litigation History Another aspect to consider is the franchisor's litigation history. A history of excessive litigation may indicate ongoing disputes between the franchisor and franchisees over contract terms or operational practices. Item 3 of the FDD provides insights into past lawsuits involving the franchisor, offering a glimpse of potential challenges in maintaining a smooth relationship. Financial Performance Financial performance representations are another element to examine in an FDD. While some franchisors present detailed financial data illustrating potential earnings, others may offer vague projections lacking solid evidence. As a prospective franchisee, it is essential to determine whether these figures are based on actual results or mere estimates that may not reflect realistic expectations for your location and market conditions. Supplier Restrictions Unreasonable supplier restrictions often lurk within FDDs, where franchisors dictate from whom you must purchase goods or services, potentially at inflated prices compared to market rates. This can unnecessarily harm profits while benefiting suppliers aligned with corporate interests rather than yours. Terminations Clauses Onerous termination clauses represent another pitfall for unsuspecting franchisees, who may find themselves locked into unfavorable contracts that are difficult or costly to exit if circumstances change unexpectedly. These terms are often set by parties prioritizing profit maximization over the well-being of stakeholders, including franchisees like yourself, who may unwittingly become entangled in complex dealings. Proceeding through the intricacies of a Franchise Disclosure Document requires diligence and a keen eye for potential red flags. As potential franchisees in Arizona, being aware of high turnover rates, extensive litigation history, and financial performance representations can help make informed decisions. Ask questions about any unreasonable supplier restrictions and review all terms, especially concerning termination clauses. By adopting robust due diligence practices and seeking seasoned legal advice, you can better protect your interests and enhance your chances of success in the franchising world. A well-considered approach today can safeguard your investment and help ensure a prosperous future in the franchise landscape.
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In today's increasingly digital world, estate planning has evolved far beyond traditional assets like real estate and bank accounts. With the proliferation of digital assets—from social media profiles to cryptocurrency—modern estate planning requires a fresh perspective and updated strategies. For residents of Tucson, Arizona, keeping your will current means considering how these digital elements fit into your overall plan. We understand the intricacies involved in managing both tangible and intangible assets, ensuring that your estate plan is comprehensive and future-proofed. We'll explore the significance of including digital assets in your estate plan and guide how to update your Arizona will for the 21st century. Digital Assets in Estate Planning The concept of digital assets is relatively new, yet they play a role in modern estate planning. Digital assets encompass a wide range of online accounts and electronically stored information that hold value or sentimental worth. This includes everything from email accounts and cloud storage to cryptocurrencies like Bitcoin and NFTs (non-fungible tokens). As our lives become increasingly entwined with technology, we must address these components within our wills to ensure they are managed according to our wishes after we're gone. Management of Digital Assets One of the primary challenges with digital asset management is access. With proper documentation, loved ones may be able to locate or gain access to important files or accounts. Many platforms have strict privacy policies that can prevent family members from retrieving vital information without explicit authorization. Therefore, it's imperative to include clear instructions and designate someone you trust as a "digital executor" in your will. This individual will be responsible for handling these specific assets upon your passing. Legal Landscape Next, understanding the legal landscape surrounding digital assets in Arizona. While federal laws like the Stored Communications Act protect users' privacy rights over their online data, state-specific regulations also play a pivotal role. In Arizona, laws such as ARS §14-1310 allow fiduciaries limited access to certain digital content under specific conditions. Being aware of these laws ensures that your estate plan complies with current regulations while safeguarding your legacy.  Organizing Digital Assets It's important to list out all relevant digital assets and regularly update this inventory as technology evolves or personal circumstances change. Creating an exhaustive list might seem daunting; organizing them into categories such as financial accounts (PayPal), social media (Facebook), entertainment (Netflix), etc., simplifies this process considerably—and helps avoid overlooking any significant items over time. As we maneuver through the complexities of the digital age, updating your Arizona will to include digital assets is paramount. By addressing this vital component of modern estate planning, you not only protect your online valuables but also ensure a smoother transition for your loved ones. The Law Offices of J. Marc Montijo are here to assist you in crafting an estate plan that comprehensively encompasses both your traditional and digital assets. By taking these proactive steps today, you can secure peace of mind for yourself and those you care about, knowing that your wishes will be honored and your legacy will be preserved for future generations.
Premises liability is an area of personal injury law that holds property owners and managers responsible for injuries that occur on their property due to unsafe conditions. At the Law Office of J. Marc Montijo, we help injured victims in Arizona understand their rights under premises liability laws and seek compensation for their injuries.  What Is Premises Liability? Premises liability refers to the legal responsibility of property owners to maintain their property in a reasonably safe condition. This applies to both residential and commercial properties, including businesses, rental properties, and public spaces. If a property owner or manager fails to uphold this duty and someone is injured as a result, the victim may have a legal claim for compensation. Common premises liability cases include: Slip and Fall Accidents: These occur when a person slips, trips, or falls due to hazardous conditions such as wet floors, uneven pavement, or debris left in walkways. Negligent Security: If a property owner fails to provide adequate security in areas where it’s reasonably necessary (e.g., parking lots or apartment complexes), they can be held liable if someone is assaulted or harmed on the premises. Dog Bites: Arizona holds dog owners strictly liable for injuries caused by their pets, regardless of whether the dog has a history of aggression. Swimming Pool Accidents: Property owners with pools are required to have certain safety measures in place, particularly in areas where children might be present. Falling Objects: Injuries caused by objects falling from shelves, signs, or structures can also fall under premises liability. Key Elements of a Premises Liability Claim For a successful premises liability claim in Arizona, the injured party must prove certain elements: Duty of Care: The property owner or occupier had a legal duty to maintain the property and ensure it was safe for visitors. Breach of Duty: The owner failed to fulfill their responsibility to maintain the property or warn of hazards. Causation: The breach of duty directly caused the injury. Damages: The injured person suffered damages (physical injury, medical bills, lost wages, etc.) as a result of the unsafe condition. In Arizona, the level of responsibility a property owner owes to a visitor depends on the visitor’s status: Invitees: People who are on the property for business purposes, such as customers in a store. Property owners owe the highest duty of care to invitees and must regularly inspect the property for hazards. Licensees: Individuals who are on the property for non-business purposes, such as social guests. Owners must warn licensees of known hazards. Trespassers: People who are on the property without permission. While property owners generally owe trespassers a lesser duty of care, they cannot intentionally harm them. Arizona’s Comparative Negligence Rule In Arizona, the state follows a "comparative negligence" rule, which means that even if the injured party is partly responsible for their own injuries, they can still recover damages. However, their compensation may be reduced by their percentage of fault. For example, if a person is found to be 20% at fault for a slip and fall accident, they can recover 80% of their total damages. What to Do If You’re Injured on Someone Else’s Property If you’ve been injured on someone else’s property, it’s essential to take immediate steps to protect your legal rights: Seek Medical Attention: Your health is the top priority. Make sure to get proper medical care as soon as possible after the incident. Document the Scene: If you’re able, take photos or videos of the area where the injury occurred, including any hazards or unsafe conditions. Report the Incident: Notify the property owner or manager of the accident and get a written report, if possible. Gather Witness Information: If anyone saw the accident happen, collect their contact information. Contact an Attorney: Premises liability cases can be complex, so it’s important to consult with an experienced attorney who can help you navigate the legal process. How the Law Office of J. Marc Montijo Can Help At the Law Office of J. Marc Montijo, we understand the physical, emotional, and financial toll that premises liability injuries can take on victims and their families. Our team is experienced in handling premises liability cases in Arizona and is dedicated to ensuring that property owners are held accountable for their negligence. We will thoroughly investigate your case, gather evidence, and advocate on your behalf to secure fair compensation for your injuries. Whether you were injured in a slip and fall, dog attack, or another premises-related accident, we are here to provide the legal support you need. Premises liability laws in Arizona are designed to protect individuals from unsafe conditions on someone else’s property. If you or a loved one has been injured due to the negligence of a property owner, you may be entitled to compensation. The Law Office of J. Marc Montijo is here to help you understand your rights and fight for the justice you deserve. Contact us today for a consultation.