The Three Categories of Trusts Covered
Not every arrangement called a "trust" falls under the Trust Code. This statute draws the boundary by naming three types the code governs.
This chapter applies to express trusts, charitable or noncharitable trusts and trusts created pursuant to a statute, judgment or decree that requires the trust to be administered in the manner of an express trust.
A.R.S. § 14-10102First, express trusts. A person creates these on purpose through a trust document or a will. Second, charitable trusts, which serve a charitable purpose rather than named individuals.
Third, trusts set up by a court order or statute. These must follow the same rules as an express trust.
What This Does Not Cover
Constructive trusts and resulting trusts fall outside this chapter. Courts create those as remedies, not as planned arrangements.
Business trusts used mainly as investment vehicles are also excluded. This means most families will find that their trusts do fall within the code.
Revocable living trusts, irrevocable trusts, special needs trusts, and charitable trusts are all covered. As a result, rules about fiduciary duty, beneficiary rights, and trust changes all apply.
The Trust Code sets clear standards for trustee conduct and beneficiary rights. The trust document itself defines each beneficiary's interests.