What’s Involved in Administering a Decedent’s Trust?
When someone dies leaving a trust, there is an administrative process that must be followed to manage and distribute its assets in accordance with the decedent’s instructions. Administering a trust is similar to probate of an estate, as it involves notifying beneficiaries, collecting and managing assets, paying debts and taxes and managing and distributing assets. If you have been named a trustee in Arizona, you need to take certain actions to fulfill your responsibilities.
Consulting with a knowledgeable Arizona trust administration lawyer will help you understand the trust’s purposes, the beneficiaries’ interests and the trustee’s duties. Here are some of the key steps involved in administering a decedent’s trust in Arizona:
- Obtain a copy of the trust — Reviewing the trust document will help you get a clear understanding of the decedent’s wishes and the terms of the trust.
- Notify beneficiaries — You should share a copy of the trust document with the beneficiaries and provide information on how they can reach out to raise any queries or concerns.
- Gather assets and make an inventory — As the trustee, it is your responsibility to locate bank accounts, investment accounts, real estate and personal property of the decedent and to catalog the value of these assets.
- Pay debts and taxes — Before distributing any assets to beneficiaries, you must pay any outstanding debts and taxes owed by the trust.
- Distribute assets to beneficiaries — Once all debts and taxes have been paid, you can begin distributing the trust assets to the beneficiaries according to the terms of the trust document.
- File a final trust tax return — After all assets have been distributed, you will need to file a final tax return for the trust.
- Close the trust — You must file a notice of completion with the court and provide a final accounting to the beneficiaries.
Administering a decedent’s trust can be a complex process but working with an experienced estate trust administration attorney will ensure that you fulfill your responsibilities as trustee and comply with all applicable laws and regulations.
Pennington Law, PLLC assists clients in Surprise, Sun City West, Buckeye, and surrounding areas in Arizona with administering decedents’ trusts. Call 623-208-7867 or contact us online for a free consultation.
