Trust Administration Attorney in Phoenix, Arizona

Formulating a comprehensive estate plan should be a part of anyone’s long-term goals, and there are a number of options available depending on your needs. Many people find that a trust is the best approach to ensure their assets are protected, but they still have questions about what actually happens when the trust is administered. If you’re interested in drafting a trust—or you are wondering how a loved one’s trust will be administered—call Simmons & Greene, P.C. today for a consultation with an estate planning attorney. We’re located in Phoenix, Arizona, but can serve clients throughout the area, including Glendale, Peoria, Mesa, Chandler, and Scottsdale.

Trusts in Arizona

A trust is a legal document that allows you to transfer certain assets over to a trustee while you’re still living. Within the trust, you can allocate your assets to named beneficiaries, and when you pass, your trustee will be responsible for distributing the assets as laid out in the trust. Trusts are often preferable to wills because they can avoid probate, the legal process that wills must go through. When a will goes through probate, it must be “proved” by a judge, and then all assets must be accounted for and assessed. After debts have been paid, the assets will be allocated to beneficiaries. There are court fees and often attorney fees associated with probate, and the entire process can take six months to a year to complete. Additionally, when a will goes through probate, it becomes public, and anyone who requests can see it.

A trust remains private even after you pass away and it doesn’t have to go through probate since ownership has already been transferred into the name of your trustee. Trusts also allow you flexibility while you’re still living if you wish to move assets in and out, rename or add beneficiaries, or even rename your trustee.

The Role of the Trustee

The role of the trustee is crucial, and you should give a lot of thought to whom you choose. This could be someone you know, but it can also be an attorney or a professional trustee. While you’re living, you will still have control over the trust even though your assets will be in the trustee’s name. Once you pass, the trustee is now responsible for the administration of your trust. This includes identifying and notifying beneficiaries, paying any administrative costs, contacting creditors and addressing debt that needs to be paid through the trust, preparing and paying taxes, creating a reserve fund, and finally, distributing assets.

Common Trust Administration Issues

When forming a trust, it’s common to have concerns about potential issues that may come up when the trust is being administered. The best way to address these is by ensuring your trust is properly set up right from the start, and that your trustee enlists the help of a skilled estate planning attorney when the time comes.

Concerns could come from beneficiaries who feel the trust isn’t being executed correctly, family members questioning the authority of the trustee, or beneficiaries who contest the trust altogether. The trustee may also encounter language within the trust that is unclear or find that certain provisions are outdated or have become void. An experienced attorney can help ensure these issues are minimized, and can also help to address them should they arise.