Facts Every Family Trust Beneficiary Should Know

A family trust is an important part of an estate planning arsenal as it allows for a component of planning that occurs while the trustee is still living. It protects major assets from going through the process of probate, which can be costly and time-consuming. However, in addition to understanding how the process of setting up a Phoenix, AZ family trust works, it is also important that beneficiary of such a trust understands this estate planning product as well. Consider a few facts that every family trust beneficiary should know:

Beneficiaries should have a copy of the trust agreement: Because this is the person that will benefit the asset, which is generally a piece of real estate, it is important that they are privy to the details found within the Phoenix family trust agreement. Make sure that the beneficiary has the most updated copy of the document, so they have a chance to ask any pertinent questions. Moreover, this gives them a chance to peruse the document at their leisure, ahead of the passing of the trustee, which offers them the opportunity for input on the trust agreement.
Ask about the range of duties as the beneficiary: Beneficiaries may have a wide range responsibilities relating to the Phoenix family trust; this might include the power of appointment, which is the determination of how the property will be administered and to whom following the passing of the trustee. However, it helps to have this information ahead of time so they can be prepared.
Explain the purpose of the trust: The beneficiary of the family trust account needs to understand the purpose of it. Is it meant to protect an heir property or have someone to gift the home to another following the passing of the person that set up of the account? These are important questions to ask about the trust agreement for the beneficiary. It ensures that this person is on the same page as everyone when it comes to setting and maintaining a certain set of goals as it relates to this document.

The more that the beneficiary knows about the Phoenix family trust account, the more likely it is that they can and will successfully administer this document in a way that would make those that set it up and attached to it certain intentions happy with the direction of the trust administration.

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