Legal Question in Wills and Trusts in Arizona

Re: Trust Administration

Yes, banks do have trust departments that do an excellent job of prudently managing the assets in the trust and distributing the income and the assets according to the terms of the trust. There are also trust companies who specialize in trust administration and use others to make investment decisions. There are many advantages to utilizing someone, other than a family member, to administer the trust and make discretionary decisions regarding distribution of income and assets. The good news is that they do not favor any individual beneficiary and follow the written terms of the trust to the letter. The bad news is that they do not know the beneficiaries and may be limited in their ability to determine how to apply discretion. The trust agreement must be written very carefully.