Forming and operating a trust the right way can be an incredible tool for wealth management and taking care of loved ones. To help ensure your trust operates as intended, someone must step in to manage it. That person is called the trustee, and their job comes with several legal obligations. If you are a trustee or a beneficiary of a trust, you may have questions about what comes next. That is where an experienced trust administration attorney can help.
At Theut Scaringelli & Kupiszewski P.L.C., our attorneys guide clients through every stage of trust administration with honesty, professionalism, and compassion. Our role is to help you understand the process, avoid mistakes, and achieve peace of mind. We’ve been serving the people of Phoenix for decades and are here to serve you.
What Is a Trust?
A trust is a legal arrangement that allows someone (the settlor) to place their property under the care of a trustee for the benefit of certain people (beneficiaries). Individuals and families often create trusts to:
- Protect family wealth,
- Provide for loved ones in a structured way,
- Avoid probate if the settlor passes away, and
- Plan for long-term financial stability.
Think of a trust as a container. You can design that container in several ways: It can be revocable or irrevocable, and you can distribute assets from it at scheduled times or only if certain events occur.
A trustee must comply with your trust rules and properly manage your assets. Our Phoenix trust administration attorney can help ensure that a trustee does their job the right way.
A Trustee’s Powers and Obligations
Serving as a trustee is an honor, but it also comes with serious responsibility. A trustee is a fiduciary with the following duties:
- The duty of loyalty. The trustee must always act in the best interests of the beneficiaries, not in their own interest.
- The duty of care. The trustee must manage the trust property as a reasonable and careful person would manage someone else’s assets, employing any special asset management skills they have.
- The duty to inform and report. Beneficiaries have the right to know what is happening with the trust. Trustees must keep accurate records and share important information.
- The duty to follow the trust terms. The trust document is the roadmap. The trustee must faithfully carry out the settlor’s instructions.
Arizona law allows trustees to manage property, invest assets, hire professionals, and make distributions. But with power comes accountability. Mismanagement or neglect can lead to legal consequences.
Remedies for a Breach of Trust
What happens if a trustee doesn’t fulfill their obligations? They could be subject to legal action for breach of trust.
Common types of breaches include:
- Using trust assets for personal gain,
- Failing to provide information to beneficiaries,
- Neglecting to invest or protect trust property,
- Ignoring the instructions in the trust document, and
- Being improperly biased against a beneficiary.
When a breach occurs, beneficiaries may seek relief through the courts.
Remedies may include:
- Removal of the trustee,
- Restitution of trust property,
- Denial of compensation to the trustee,
- Suspension of trustee powers, and
- Court orders enjoining the trustee or directing proper administration.
The law is designed to protect beneficiaries and preserve the settlor’s intent. However, when a trustee strays from their obligations, a trust administration lawyer can provide the knowledge and strategy to help reclaim the trust’s original purpose.
How a Phoenix Trust Administration Attorney Can Help
Whether you are a trustee trying to do the right thing or a beneficiary seeking answers, you do not need to walk your path alone. Our trust administration lawyer can provide guidance, advocacy, and peace of mind by:
- Clarifying the rules. Trust documents can be complex, and Arizona statutes add another layer of complexity. We can clearly explain your rights and obligations and give you a game plan for monitoring or following through on trustee activities.
- Guiding trustees through the process. From collecting assets to making distributions, our team helps trustees follow the correct steps and avoid costly mistakes.
- Resolving disputes. Tensions can arise between trustees and beneficiaries. Our skilled attorneys can mediate disputes, negotiate solutions, or represent clients in court when necessary.
- Protecting beneficiaries. If you are a beneficiary, our team can help ensure your rights are respected. We can demand information, hold trustees accountable, and safeguard your inheritance.
- Offering professional support. Trustees are often responsible for making tricky financial moves. Our attorneys can coordinate with accountants, financial advisors, and other professionals to help ensure smooth and effective trust administration.
At Theut Scaringelli & Kupiszewski P.L.C., we understand that trust administration involves more than just the law. It affects families, legacies, and emotions. Our role is to provide skilled legal counsel and approach your situation with compassion and respect.
Protect Your Legacy: Contact Our Trust Administration Attorney Today
Our top-rated legal team at Theut Scaringelli & Kupiszewski P.L.C. understands the importance of preserving family bonds while honoring a legacy. We have decades of combined experience focusing on estate planning matters and are ready to help the people of Phoenix. We are here to listen to your story and provide the guidance you need.
Contact us online or by phone today to speak with an attorney who understands the law and the human side of trust administration.
Resources:
- Definitions, A.R.S. § 14-10103 (2024), link.
- Duty of loyalty, A.R.S. § 14-10802 (2024), link.
- Duty to administer trust, A.R.S. § 14-10801 (2024), link.
- Prudent administration, A.R.S. § 14-10804 (2024), link.
- Record keeping and identification of trust property, A.R.S. § 14-10810 (2024), link.
- Duty to inform and report, A.R.S. § 14-10813 (2024), link.
- Prudent investor rule, A.R.S. § 14-10901 (2024), link.
- Trustee’s skills, A.R.S. § 14-10806 (2024), link.