Who Is Really in Charge of a Revocable Trust
A common concern for people creating a living trust is whether they lose control of their assets. The answer is clear: they do not. As long as the trust is revocable, the settlor calls the shots. The trustee's obligations run exclusively to the settlor, not to the named beneficiaries. The settlor can amend or revoke the trust at any time.
While a trust is revocable by the settlor, the rights of the beneficiaries are subject to the control of, and the duties of the trustee are owed exclusively to, the settlor.
A.R.S. § 14-10603(A)This means a beneficiary cannot challenge how trust assets are managed during the settlor's lifetime. They cannot demand accountings, object to investment decisions, or interfere with distributions. The settlor retains complete authority to change beneficiaries, move assets, or dissolve the trust. The power to amend the trust documents rests entirely with the settlor.
Powers of Withdrawal Work the Same Way
The statute also addresses a less common but important scenario: when someone other than the settlor holds a power of withdrawal over trust property. During the period that power can be exercised, the holder steps into the settlor's shoes for that portion of the trust.
During the period a power of withdrawal may be exercised, the holder of the power has the rights of a settlor of a revocable trust under this section to the extent of the property subject to the power.
A.R.S. § 14-10603(B)This provision matters most in the context of irrevocable trusts that include "Crummey" withdrawal powers. These powers allow beneficiaries to withdraw contributions for a limited window, giving them temporary settlor-like rights over that property. Once the withdrawal window closes, those rights end and the trustee's duties shift back to the beneficiaries.