Does Your Existing Trust Split Into Two Shares On a Spouse’s Death?
MARCH 9, 2015 VOLUME 22 NUMBER 10 A letter from a reader asks: “My husband and I set up a revocable trust which will divide our assets in half when one of us dies. This was to avoid estate taxes. Now that estate taxes are no longer a problem, are there still benefits to splitting […]
“No-Contest” Clause in Trust Can Be As Effective As Will Provision
JANUARY 19, 2015 VOLUME 22 NUMBER 3 When we prepare wills and/or trusts for our clients, they often ask if they should include a “no-contest” provision. Typically, they want us to add language that would penalize anyone who challenges the validity of their estate planning documents. Are such provisions effective, or even permitted? We explain […]
Trustee Not Personally Liable for Trust Business
JUNE 23, 2014 VOLUME 21 NUMBER 23 It’s a small point, but important — and the Arizona Court of Appeals reiterated it in a decision released last week. So it seems to us that it would be appropriate to call attention to this simple rule: generally speaking, a trustee is not personally liable for her […]
Excessive Fee in Special Needs Trust Leads to Lawyer’s Suspension
OCTOBER 17, 2011 VOLUME 18 NUMBER 36 Lawyers are ethically prohibited from charging excessive fees. Period. It doesn’t matter if the lawyer has a fee agreement calling for an excessive fee. It doesn’t matter if the negotiated fee seemed reasonable at the time, but turned out to be excessive as things developed. It doesn’t matter […]
Remainder Beneficiaries Not Entitled to Trust Beneficiary’s Financial Info
SEPTEMBER 12, 2011 VOLUME 18 NUMBER 32 Imagine with us for a moment: you are the trustee of an irrevocable trust created by a now-deceased woman for the benefit of her daughter. The trust says that her daughter is to receive all the income generated by the trust. You are also given the discretion to […]
What Is a Trust Protector? Do You Need One In Your Trust?
JUNE 27, 2011 VOLUME 18 NUMBER 23 We have written before about Arizona’s new Trust Code, and the Uniform Trust Code on which it is based. The “new” law (it became effective on January 1, 2009, so it’s not that new any more) included a number of changes to the way trusts have worked in […]
Can My Brother’s Special Needs Trust Pay His Property Taxes?
DECEMBER 6, 2010 VOLUME 17 NUMBER 37 A client’s question: My brother has a special needs trust, and I am the trustee. He lives in his condo and gets services from AHCCCS and ALTCS. Can the trust pay his property taxes? Interesting question. The answer isn’t as easy or straightforward as it ought to be. […]
Distinguishing Two Kinds of Special Needs Trusts
AUGUST 23, 2010 VOLUME 17 NUMBER 27 It really is unfortunate that we didn’t see this problem coming. Those of us who pioneered special needs trust planning back in the 1980s should have realized that we were setting up everyone (including ourselves) for confusion. We should have just given the two main kinds of special […]
Do You Need a New Tax ID Number for Your Living Trust?
AUGUST 17, 2009 VOLUME 16, NUMBER 51 Imagine that you are trying to change the title on your bank account into the name of the living trust you and your spouse just set up. The nice lady at the bank is telling you that you need to get a new tax identification number for the […]
Some Advice About Selecting Fiduciaries For Your Estate Plan
APRIL 20, 2009 VOLUME 16, NUMBER 37 When it comes time to complete estate planning, our clients usually have clear ideas about who should receive their property, what health care decisions they would want made — even how they feel about cremation, burial, organ donation and most of the other issues that must be addressed. […]
