{"id":1867,"date":"2020-08-27T21:17:39","date_gmt":"2020-08-27T21:17:39","guid":{"rendered":"https:\/\/www.jacksonwhitelaw.com\/arizona-estate-planning\/?p=1867"},"modified":"2022-08-30T14:23:36","modified_gmt":"2022-08-30T14:23:36","slug":"how-long-trustee-distribute-beneficiaries","status":"publish","type":"post","link":"https:\/\/www.jacksonwhitelaw.com\/arizona-estate-planning\/blog\/how-long-trustee-distribute-beneficiaries\/","title":{"rendered":"How Long Does a Trustee Have to Distribute to Beneficiaries?"},"content":{"rendered":"

Introduction<\/h2>\n

Handling assets in a trust is a major commitment that involves the management of assets until beneficiaries reach legal age. Trustees have a fiduciary duty to act in the best interests of the beneficiaries which requires access to certain financial documents, such as retirement account details and life insurance policies. A trustee will also need to review the trust document which should entail the trust\u2019s location, beneficiaries, and specific instructions for the trustee to follow.<\/p>\n

The instructions outlined in the trust document, as well as Arizona state laws, dictate how long a trustee has to distribute assets to beneficiaries. Each situation is different and some estates may be more complex than others, such as estates where real estate and other assets were bought or sold before distribution to the beneficiaries. However, the average trust should be fully distributed within 12 to 18 months once the trust administration has begun.<\/p>\n

The Job of a Trustee<\/h2>\n

Being a trustee requires extensive organization to ensure that the trust is managed properly and that any investments made on behalf of the beneficiaries are sound. As a trustee, you are in charge of obtaining a death certificate, locating and filing the will with the local probate court, notifying the state Department of Health and the Social Security Administration of the death, getting assets appraised, paying debts, and transferring property into your name as trustee.<\/p>\n

Next, a trustee will need to get in touch with the beneficiaries named on the trust. Beneficiaries are generally considered current or contingent. Current beneficiaries are those who are first in line to inherit assets from a trust. Contingent beneficiaries are next in line if the current beneficiaries should die before the trust becomes irrevocable. While many trustors set an age for assets in the trust to be distributed, such as age 18 or 21, a trust offers maximum flexibility which allows for assets to be transferred at any age or for the beneficiary\u2019s lifetime.<\/p>\n

Settling an Estate<\/h2>\n

To determine how long a trust remains open after the death of the trustor, you need to consider the type of trust.<\/p>\n