If I Have a Revocable Living Trust in Arizona, Will My Trustee Need to Hire an Attorney to Manage My Estate and Distribute the Assets?
A revocable living trust is one of the most powerful tools in Arizona estate planning. It allows you to avoid probate, maintain privacy, and ensure a smooth transition of your assets after death. But a common question arises: if you’ve done all the right planning and created a trust, will your successor trustee still need to hire an attorney when the time comes to administer it?
The short answer: often yes—but not always. Here’s why, and when hiring an attorney is recommended or even essential.
What Is a Trustee’s Role After Death?
When you pass away, the person you named as your successor trustee steps in to carry out your instructions. This process is known as trust administration.
Their responsibilities typically include:
- Locating and securing trust assets
- Notifying beneficiaries
- Paying final bills, debts, and taxes
- Filing final income tax returns
- Managing and appraising assets
- Distributing property to beneficiaries
- Preparing accountings and keeping records
These are legal and fiduciary duties governed by Arizona law (see A.R.S. §§ 14-10801 to 14-10818), and failure to carry them out properly can expose the trustee to personal liability.
Is an Attorney Legally Required?
No, Arizona law does not require a trustee to hire an attorney. A capable, detail-oriented trustee can administer a trust without legal help, especially if:
- The trust is simple and straightforward
- The assets are clearly titled in the trust
- There are no disputes or complicated tax issues
- The beneficiaries are cooperative and informed
However, even in simple cases, many trustees choose to hire an attorney—at least for initial guidance.
When Hiring an Attorney Is Strongly Recommended
Here are situations when hiring an estate planning attorney is highly advisable or essential:
#1-Unfamiliarity With Legal or Fiduciary Duties
Most trustees are not legal professionals. An attorney can:
- Explain your obligations under Arizona trust law
- Help you avoid missteps that can result in liability or disputes
#2-Problems with Trust Funding
A trust only controls assets that were properly titled in the trust. If some assets were not transferred (such as real estate, bank accounts, or business interests), an attorney may help:
- Transfer assets into the trust posthumously (sometimes requiring probate)
- Address legal issues with financial institutions
#3-Real Estate Transfers
Selling or distributing real estate from a trust often involves:
- Recording documents with the county
- Using a Certification of Trust or deed transfer
- Confirming clear title
An attorney ensures these steps comply with state law and title company requirements.
#4-Tax Filings and Deadlines
The trust may require:
- A final 1040 (individual income tax return)
- A 1041 (fiduciary income tax return)
- A Form 706 (estate tax return, in rare high-value cases)
An attorney or CPA can help identify which forms are needed and file them on time.
#5-Conflict Among Beneficiaries
If disputes arise—especially over distributions, valuations, or fairness—an attorney protects the trustee and ensures all steps are documented correctly.
#6-Complex or High-Value Estates
Estates involving large sums, business interests, intellectual property, or out-of-state assets can be legally complex. Professional guidance helps avoid costly errors.
Who Pays for the Attorney?
If legal help is needed to administer the trust, the cost is typically paid from trust assets—not out of the trustee’s pocket.
This is considered a legitimate expense, just like accountant fees, real estate commissions, or appraisals.
When a Trustee Might Not Need an Attorney
In some cases, a trustee can handle the administration without hiring an attorney:
- The trust is simple and well-organized
- All assets are clearly titled in the trust
- Beneficiaries are informed and cooperative
- There are no special tax issues or debts
- The trustee is confident handling forms and paperwork
Even then, consulting an attorney for an hour or two at the beginning can provide peace of mind and clarity.
Final Thoughts
Having a revocable living trust in Arizona makes it significantly easier for your loved ones to administer your estate. It often eliminates probate, reduces court involvement, and speeds up distributions.
But trust administration is still a legal process that involves serious responsibilities. In many cases, your trustee will benefit from hiring an attorney—at least for guidance—especially when dealing with real estate, taxes, or unclear issues.
Bottom line: Hiring an attorney isn’t always required, but it’s often a smart move to ensure everything is done properly and legally. A little help at the right time can save your trustee a lot of stress and protect your legacy.
Have a trust and want to make sure it’s properly funded and ready for smooth administration? Or are you a new trustee wondering what to do next? Feel free to reach out—I can walk you through your next steps.