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A.R.S. § 14-10105

Default and Mandatory Rules in Trust Law

Verified April 4, 202657th Legislature, 1st Regular Session

The trust code lets you customize how your trust works. But some rules cannot be changed. For example, the duty to act in good faith is always required. Spendthrift rules and the court's power to modify trusts also stay in place.

Title 14, ARIZONA TRUST CODE

azleg.gov

Your Trust Terms Come First

The terms of the trust document generally control. If your trust gives the trustee certain powers, those terms take priority over the default rules in the trust code.

Except as otherwise provided in the terms of the trust, this chapter governs: 1. The duties, powers, exercise of powers, resignation and appointment of a trustee. 2. Conflicts of interest of a trustee. 3. Relations among trustees. 4. Combinations or divisions of trusts. 5. The rights and interests of a beneficiary.

A.R.S. § 14-10105(A)

This means you can tailor trustee powers and set conditions on access. You can also define how distributions work for your family.

A trustee operates within the framework the trust creates. This is different from a personal representative, who follows a court-supervised process.

Rules That Cannot Be Changed

Some protections are built into the law. No trust document can override them. These mandatory rules protect beneficiaries and keep courts available as a safeguard.

The terms of a trust prevail over any provision of this chapter except: 1. The requirements for creating a trust. 2. The duty of a trustee to act in good faith and in accordance with the purposes of the trust. 3. The requirement that a trust and its terms be for the benefit of its beneficiaries and that the trust have a purpose that is lawful, not contrary to public policy and possible to achieve.

A.R.S. § 14-10105(B)(1)-(3)

A trust cannot waive the trustee's duty of good faith. It also cannot remove the court's authority to step in when something goes wrong.

Beneficiaries keep certain transparency rights. For example, they can request reports from the trustee of an irrevocable trust. As a result, the person managing someone else's assets always has a duty to act honestly.

14-10105. Default and mandatory rules A. Except as otherwise provided in the terms of the trust, this chapter governs: 1. The duties, powers, exercise of powers, resignation and appointment of a trustee. 2. Conflicts of interest of a trustee. 3. Relations among trustees. 4. Combinations or divisions of trusts. 5. The rights and interests of a beneficiary. B. The terms of a trust prevail over any provision of this chapter except: 1. The requirements for creating a trust. 2. The duty of a trustee to act in good faith and in accordance with the purposes of the trust. 3. The requirement that a trust and its terms be for the benefit of its beneficiaries and that the trust have a purpose that is lawful, not contrary to public policy and possible to achieve. 4. The power of the court to modify or terminate a trust under sections 14-10410, 14-10411, 14-10412, 14-10413, 14-10414, 14-10415 and 14-10416. 5. The effect of a spendthrift provision and the rights of certain creditors and assignees to reach a trust as provided in article 5 of this chapter. 6. The power of the court under section 14-10702 to require, dispense with, modify or terminate a bond. 7. The power of the court under section 14-10708, subsection B to adjust a trustee's compensation specified in the terms of the trust that is unreasonably low or high. 8. The duty to respond to the request of a qualified beneficiary of an irrevocable trust for trustee's reports and other information reasonably related to the administration of a trust. 9. The effect of an exculpatory term under section 14-11008. 10. The rights under sections 14-11010, 14-11011, 14-11012 and 14-11013 of a person other than a trustee or beneficiary. 11. Periods of limitation for commencing a judicial proceeding. 12. The power of the court to take action consistent with the settlor's intent and exercise jurisdiction as may be necessary in the interests of justice. 13...

This page provides general legal information about Arizona statutes and is not legal advice. For guidance on how this law applies to your situation, speak with a qualified attorney.

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