Legal Question in Wills and Trusts in Arizona

Re: Living Trust

The first question to answer is whether any assets were conveyed/transferred to the Trust. The life insurance may or may not have been transferred to the Trust, but if so, then the Trustee can make the death claim for the benefit payable thereunder, if the Trust is the beneficiary named in the policy. Quite often, the ownership of the policy remains in the name (ownership) of the insured and the policy says the name of the person to receive the benefit due. The trustee of the Trust only has authority over assets in the Trust, if no assets were transferred to the Trust, then there is nothing for the trustee to do, as there are no assets to administer. You must determine exactly what all of the assets are that your sister owned and how they are titled. If all the assets are owned by her individually, then a probate will probably be required and may be the best way to determine who is entitled to receive what assets remain in the estate after the debts, taxes and expenses have been paid. State Law will control the resolution of many issues, particularly the rules regarding probate and the Trust.