Legal Question in Wills and Trusts in Arizona

Re: Trust, and Estate Account

She would need to set up an estate account until the trust is terminated. She is the administrator.

Re: Trust, and Estate Account

Assuming that your father in law lived in Arizona: You should hire an Arizona attorney to help you. Successor Trustees and Personal Representatives (aka "executor" or executrix") have duty to the estate and to the beneficiaries. With that duty comes a lot of risk.

Your status as Successor Trustee gives you all the power you need to administer trust assets. If there are assets outside of the trust ("probate assets") then you may need to be appointed Personal Representative depending on the value of those assets.

The POA is invalid after death.

Re: Trust, and Estate Account

Your wife's authority under the POA terminated upon the death of her father, automatically. Her authority as successor trustee became effective immediately upon the death of her father, however, she only has control over assets which are in the trust. Often, people create trusts but fail to transfer their assets (ie. bank accounts) into the trust. If your father's assets are still in his individual name, then probate is required, and the bank would be correct in advising you that an estate account must be established. Your wife must go to probate court in order to be appointed Personal Representative/executor of the estate. This appointment is required in order to use the estate assets to pay his bills, funeral expenses, etc., and to administer the estate according to the Will or according to state law.

Re: Trust, and Estate Account

Your question indicates that it is a question of Arizona law. Arizona law will apply if the deceased was an Arizona resident when he died. Under Arizona law the following applies:

1. Power of Attorney status ends when the grantor of the POA dies.

2. A Trustee's authority begins (or continues) after the death of the grantor.

3. The Trustee will be able to control whatever assets were transferred to the trust during the grantor's life.

4. Assets that were not transferred to the trust are not under the control of the Trustee, and depending on the nature of the asset, probate may be required.

5. If your wife has priority for appointment as personal representative of her father's estate, she can be appointed by the court.

6. After being appointed by the court, the personal representative can establish an estate account with the bank and then control the assets to administer the estate according to the will.

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