Living Trust Arizona

Trustors and Trustees

Both roles play an important part in the initial stages of your trust and they are often the same people.

Why talk about both on the same page? Most people, when setting up a living trust, name themselves as both the Trustor(s) and Trustee(s). When people do so, they maintain control of both the language/appointees of the trust and their assets (bank accounts, properties, vehicles, etc.) just as before they created a living trust. What do Trustors do? Also known as Grantors or Settlors. Trustors create the living trust, appoint Trustees, Successor Trustees, Beneficiaries, etc., and set distribution instructions. Trustors are the ONLY ones who can amend (make changes) the living trust or revoke (terminate) the living trust.

How do Trustors make changes? Amendments are typically required to change legal language or change appointees. If both Co-Trustors are living, then both Co-Trustors must sign any amendments. A surviving spouse can amend the trust after the first spouse has passed. Trustors can add and remove most assets from their living trust without changing any language in the trust. Titled assets, such as property and bank accounts, are added by naming the living trust as the owner. When Trustor(s) pass That is the trigger for distribution of the estate. At this point, the trustees or successor trustees take over and follow the deceased trustors' rules for distribution of the estate.

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What do Trustees do?

Trustees are the daily managers of all assets in the trust. All transactions must be in the best interest of the Trustors.

Prior to creating a living trust, you have managed your assets in your best interests. By naming yourself both Trustor and Trustee of your trust, you are legally stating you'll be managing your assets in your own best interests. Couples usually name themselves Co-Trustees.

Typical daily activities of Trustees include:

• Putting money in a bank
• Withdrawing money from a bank
• Purchasing groceries for the Trustor(s)
• Buying / selling real estate, cars, etc.
• Borrowing / lending money
• Purchasing insurance
• Any financial activity you engage in regularly

When initial Trustees are incapacitated or are no longer living

When the initial Trustee(s) can no longer actively manage the Trust, Successor Trustees temporarily take over management of the trust. They must act in a fiduciary manner, managing assets in the trust according to the rules of the trust and in the best interests of the Trustors.

Learn more about the roles of Successor Trustees.