Morris Hall, PLLC

Estate Planning Attorneys

MakePayment with multiple options
CALL NOW: 1 (888) 222-1328
  • Home
  • Our Firm
    • About Morris Hall
    • Attorneys
    • Our Team
    • Morris Hall Core Values
    • Communities We Serve
      • Arizona
        • Carefree
        • Flagstaff
        • Mesa
        • Oro Valley
        • Phoenix
        • Prescott
        • Scottsdale
        • Sedona
        • Tucson
    • Career Opportunities
  • Estate Planning Services
    • Advanced Estate Planning
    • Asset Protection
    • Power of Attorney
    • Trust Administration and Probate
    • Wills and Trusts
  • Resources
    • Blog
    • Do I Need an Estate Plan?
    • Elder Law Reports
    • Elder Law Resources
      • Phoenix Elder Law
      • Tucson Elder Law
    • Estate Planning Problems
    • FAQs
    • Probate Resources
      • Probate
      • Flagstaff Probate
      • Phoenix Probate
      • Sedona Probate
      • Tucson Probate
    • Published Books
      • Don’t Go Broke in a Nursing home
      • Tax Free Money for Long-Term Care!
    • Recent Law Changes and Improvements Affecting Arizona
      • Update My Living Trust
    • Reports
    • Videos
    • What to Do When Death Occurs
      • What Not To Do When Someone Dies
      • Who To Contact After A Loved Ones Death
  • Reviews
    • Testimonials
    • Review Us
  • Locations
  • Events
    • Seminars / Webinars
    • Past Webinar Recordings
  • Contact
    • Consultation Policy
    • Contact Us
    • Discounts

Arizona Trust Code

arizona-trust-codeWith the beginning of 2009 came important new developments in the Arizona trust code. However, because not everyone is inclined to regularly review estate planning documents or discuss trust laws with an estate planning lawyer, many remain unaware about these important changes nearly two years after they took effect.

What has changed:

One of the most significant changes is that trustees, unless the trust document provides otherwise, are now required to provide certain beneficiaries with more information about the state of the trust.

Upon accepting a trusteeship, a trustee has 60 days to inform the beneficiaries of this acceptance and provide contact information.

Unless the trust document provides otherwise, the trustee of an irrevocable trust must provide “qualified beneficiaries” with an annual report, detailing the trust property, liabilities, receipts and disbursements. A trustee must also notify beneficiaries when they change the rate or the method of computing trustee’s fees. Other beneficiaries may also request the report, and qualified beneficiaries may waive the right to receive this report.

In addition to the annual report, the trustee must keep beneficiaries reasonably informed about the administration of the trust and generally must promptly respond to requests for information related to the administration of the trust. Essentially, these changes are aimed at ensuring beneficiaries have more information regarding the trust as a default matter.

The new law also has made significant changes to the legal standards for modifying, reforming or terminating irrevocable trusts. Previously, this was governed by a very restrictive standard established by the courts; the new law provides clearer procedures for such modifications.

For example, under the new law courts can consider circumstances not anticipated by the person who created the trust and modify the trust in certain cases. If the value of the trust falls below $100,000 and the trustee concludes that the administrative costs of maintaining the trust are no longer warranted, the trustee may terminate the trust and distribute the remaining assets.

These new laws represent an overhaul of the existing trust laws in Arizona and are largely consistent with the Uniform Trust code. With the changes, Arizona’s trust laws have come into alignment with national trends.

This article should be used for informational purposes only.  It does not create an attorney-client relationship with any reader and should not be construed as legal advice.  If you need legal advice, please contact an attorney in your community who can assess the specifics of your situation.
MH logo

Main Office

7600 N 16th St, Ste 105

Phoenix, AZ 85020

Phone: 602-249-1328

Fax: 602-248-2887

Subscribe to Our Newsletter

For a sample Click Here

Offices

Our law firm proudly serves many areas in Arizona. See all of our locations here.

Our law firm proudly serves the state of Arizona.  See all of our locations here.

Toll Free: 888-222-1328

Mon-Thur: 8:00am – 5:00pm
Fri: 8:00am – 4:00pm

  • Linkedin
  • Twitter
  • Facebook
  • Youtube
  • Instagram

Need an Estate Planning Lawyer in Arizona?

Looking for an estate planning attorney near you? We have office locations in Phoenix, Mesa, Chandler, Scottsdale, West Valley, Carefree, Prescott, Sedona, Flagstaff, Tucson, and Oro Valley in Arizona so please visit us at the location that is closest to you.

  • © 2023 American Academy of Estate Planning Attorneys, Inc All rights reserved.
  • Disclaimer