Trusts That Cross State Lines
People move. Families relocate to Arizona from other states or even other countries. When they do, they often bring an existing trust with them. This statute answers a straightforward question: does that trust still work here?
A trust not created by will is validly created if its creation complies with the law of the jurisdiction in which the trust instrument was executed or the law of the jurisdiction in which, at the time of creation, either: 1. The settlor was domiciled, had a place of abode or was a national. 2. A trustee was domiciled or had a place of business. 3. Any trust property was located.
A.R.S. § 14-10403Arizona does not require a trust to have been created under Arizona law to be enforceable here. If the trust was properly executed under the law of any connected jurisdiction, it carries over. That connection can be where the document was signed, where the settlor lived, where a trustee was based, or where trust property was held.
What This Means for New Arizona Residents
Families who move to Arizona from another state generally do not need to start over with a brand-new trust. Their existing trust remains valid as long as it was properly created under the law of the state where it was established. That said, reviewing a trust after a move is still a good idea. Arizona has its own rules about community property, homestead protections, and trust administration that may differ from the original state. A trust that was well-suited for California or Illinois law may benefit from updates to align with how Arizona handles property and probate.
