What is a Trust?
A trust is a form of legal property ownership in which a trust administrator oversees the distribution of assets.
In a living trust, you establish how your assets should be distributed while you are alive, as well as any other terms you deem necessary and those terms may be carried out after your death.
A Testamentary trust is set up in a will and established only after the person’s death when the will goes into effect.
A trust is an especially valuable estate planning tool to get one’s financial affairs in order.
Trusts can help individuals avoid probate, but simply creating a trust is not enough. Arizona trusts require oversight.
An experienced Arizona trust attorney can provide valuable counsel regarding not only how to create the trust, but also how to help trustees fulfill their duties.
Establishing a trust does not complete the planning and administration process. The trust assets will transfer to beneficiaries without passing through probate, but the trust will still need oversight.
Trustees will need to pay close attention to when and how funds are distributed.
Mushkatel, Gobbato, & Kile, P.L.L.C., helps individuals create trusts and assists trustees in complying with state and federal laws.
This process may include the transfer of funds within the terms of the trust.
If you are considering creating a trust, or have questions about Arizona trust administration, please call our offices at (480) 467-3434 for a consultation
How an Arizona Trust Attorney Will Work for You
Many vital tasks must be performed by a Trustee. A skilled Arizona trust attorney can advise regarding the following:
- Payment of taxes: Arizona trustees must file a federal estate tax return if the trust is valued at over one million dollars. It is critical that no mistakes are made when transferring money, filing special accounts, and determining whether or not to file a tax return. Failing to comply with tax obligations can have serious consequences.
- Creating an inventory of trust assets: One of the first steps that trustees must take is to ascertain the value of every asset held in the trust. Not all trusts clearly document every asset. Instead, Arizona trustees often have to explore the estate to accurately identify all trust assets.
- Providing beneficiaries with notices: Under Arizona law, all beneficiaries of a trust may request copies of the trust document and they must be given notice of their opportunity to do so. The trustee may also have to file a will with the Superior Court and send notice of death to the County Assessor in every county where property is owned.
- Trustees’ powers: In the interest of preserving a trust, trustees have certain powers they can exercise. Trustees may make investments, buy and sell assets, make repairs to trust property, distribute payments to trust beneficiaries, and purchase insurance. A knowledgeable trust attorney can help ensure that the trustees are obeying Arizona law and acting in the best interests of the trust.
- Trustees’ duties: Trustees must follow the terms of the trust, act in the best interests of the beneficiaries, diversify investments, and maintain detailed records. They must never use assets for personal benefit or give preferential treatment to one beneficiary over another without express authority from the trust document.
Getting the Help You Need
At Mushkatel, Gobbato, & Kile, P.L.L.C., we know how to maintain the strength and integrity of an Arizona trust.
If you are in the process of creating a trust or looking for advice on how to properly preserve a trust, please call our offices right away and connect with one of our estate planning attorneys.
We provide consultations at (480) 467-3434.
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