Resolving Trust Disputes Without a Courtroom
Court cases are costly and slow. The law offers a better option: a nonjudicial settlement agreement. People tied to a trust can sit down and work out issues on their own terms.
The agreement must stay within certain limits. But when it does, it can be a powerful tool.
Interested persons may enter into a binding nonjudicial settlement agreement with respect to any matter involving a trust.
A.R.S. § 14-10111(A)Many matters can be handled this way. For example, the parties can interpret trust language or approve a trustee's accounting. They can also appoint or remove a trustee, set pay, or move the trust's main office.
The Material Purpose Safeguard
There is one key limit. The agreement cannot go against a core purpose of the trust. If the trust creator intended a specific result, the parties cannot simply undo that intent.
A nonjudicial settlement agreement is valid only to the extent it does not violate a material purpose of the trust and includes terms and conditions that could be properly approved by the court under this chapter or other applicable law.
A.R.S. § 14-10111(B)Any interested person can ask a court to review the agreement later. The court can approve it, but if it declines, the agreement is not automatically void. The parties still have their deal.
For families managing a trust, this tool can save real time and money. Disputes about trustee conduct or trust reading can often be settled at a table. The flexible setup encourages teamwork while keeping the trust's core purpose intact.
This type of agreement is especially helpful when everyone agrees on the result. It gives certainty without the delays and costs of a lawsuit.