How to Settle a Revocable Trust Estate in AZ
Settling a revocable trust in Arizona requires following the provisions of the Arizona Trust Code set forth in the Arizona Revised Statutes (A.R.S.) Sections 14-10101 to 14-11102. You will most likely find yourself in this situation because you were named as the successor trustee in a revocable trust set up by a close relative or friend. When the maker of the trust dies, you will be responsible for managing and preserving the trust assets for the beneficiaries of the trust and to ultimately distribute the assets according to the terms of trust.
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Things You'll Need
- Revocable trust
- Financial documents (e.g., bank statements, stock certificates)
- Title documents (e.g. deeds, vehicle title)
- Insurance documents
- Contact information for all beneficiaries
Instructions
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1
Gather all the information on the assets in the trust, such as real estate, bank accounts, vehicles, stock certificates, jewelry and other personal effects. You will need to locate deeds, other documents of title, account statements and any other documents that indicate the type and value of the property.
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2
Gather contact information for all beneficiaries named in the trust and prepare a letter giving each beneficiary notice of the trustor's passing, your acceptance of the role of successor trustee and any other information necessary for the beneficiaries to protect their interests in the trust. You must also provide the beneficiaries with an address and phone number to contact you. A.R.S. Section 14-10813(B)(2) requires this to be done within 60 days of your acceptance of the role of trustee.
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3
Manage the trust assets as necessary, such as collecting rents from income property, effectuating maintenance and repair to property and handling stocks in same manner as any other prudent investor. Also take action to review the insurance requirements for any property (e.g., vehicle liability insurance, fire insurance) and verify that policies are in effect.
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Read the trust regarding the instructions for distribution of the assets to the beneficiaries and determine what further action you may need to take to prepare any of the assets for distribution, such as selling real estate to divide the proceeds among several different beneficiaries.
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5
Prepare a final accounting of your handling of the trust assets from the date you accepted the role of trustee through your proposed date of distribution, and include in the accounting your plan for distribution of the trust assets to the beneficiaries. Send the accounting and distribution plan to each beneficiary and request that he sign a statement approving your accounting and distribution plan.
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Tips & Warnings
As trustee, you are entitled to retain the services of any professional, such as an attorney or certified public accountant, to provide advice and counsel on how to manage and distribute the trust assets. You can also pay for these services out of the trust assets.
Even if you are a beneficiary of the trust in addition to your role as trustee, be careful to avoid co-mingling trust assets with your own or otherwise treat any of the trust assets as if they are yours until there is a final distribution.
If any beneficiary refuses to approve your accounting and distribution plan, your most prudent course of action would be to retain the services of an attorney to file a petition with the court for an order approving your proposed distribution.
References
- Photo Credit signing a contract image by William Berry from Fotolia.com
