Trust Administration Attorney Chandler Arizona

Trust Administration in Arizona involves carrying out the directives in the trust once the Trustmaker has either passed away or become incapacitated. A well-designed trust includes detailed provisions for both scenarios. During the Trustmaker’s incapacity, the Successor Trustee is responsible for preserving and maintaining the trust assets for the Trustmaker’s benefit. After the Trustmaker’s passing, the Successor Trustee gathers and evaluates the trust assets, preserves their value, and ultimately distributes them to the listed beneficiaries according to the rules set in the Revocable Living Trust.

Steps in Trust Administration

1. Review the Trust Document
The first step in administering a trust is thoroughly reading the original document and understanding its terms and rules. Trust documents can be complex and written in legal language, making it beneficial to consult an attorney for guidance.

2. Notify Heirs and Beneficiaries
Once the terms are understood, the next step is to notify the heirs and beneficiaries listed in the trust and provide them with relevant portions of the trust. This must be done promptly, as state law sets a deadline for this action.

3. Pay Expenses and Creditors
The Successor Trustee must then pay any outstanding expenses and creditors. While the trust should be structured to avoid probate court, posting a notice to creditors via publication can be beneficial. It doesn’t require court involvement but protects the trustee from liability for unpaid debts.

4. Administer the Trust
The Successor Trustee must follow the terms of the trust document. This includes distributing the remaining assets to beneficiaries after paying expenses and debts. Distribution might be straightforward, such as giving assets outright to beneficiaries, or it may involve creating Beneficiary Asset Protection Trusts. In such cases, the trustee must establish these trusts, obtain Employer Identification Numbers, and open appropriate accounts.

5. File Estate Tax Returns
The Successor Trustee is responsible for filing and paying any required estate tax returns with the IRS. The trust administration process can be closed once all assets are distributed and the tax return is filed and marked final.

Importance of a Trustworthy Successor Trustee

Trust Administration is a critical part of the estate planning process. Designating someone trustworthy as your Successor Trustee is essential, as they will ensure your final wishes are carried out accurately.

For more information on Trust Administration and to consult with our experienced attorneys, please get in touch with the Lawler Group in Chandler, Arizona.