questions & answers

Question: We are told a new law became effective in Jan. which requires changes to the Trust having to do with notifying beneficiaries every year of the amount of the estate and their inheritance. Is it true? The lawyer wants the full price of the trust to amend it. Can I find the law on the Internet? Is it boilerplate and easily done without using that same lawyer? Please direct me. Thank you.

Answer: This is true. The new law is referred to as the Arizona Trust Code and became effective January 1, 2009. There are several new provisions in the Arizona Trust Code and trusts should be reviewed to make sure there are no unintended consequences from the existing trust language. The exact provision of the Arizona Trust Code that addresses the trustee’s duty to inform and report to beneficiaries can be found online . In regard to informing and reporting, the law imposes a duty to the trustee that the trustee shall administer the trust in good faith and keep the qualified beneficiaries reasonably informed about the administration of the trust and the material facts necessary for them to protect their interests. Here, the need for an attorney greatly varies upon the size of the trust and number of beneficiaries.