Acceptance Is Not Automatic
Just because a trust document names someone as trustee does not mean they are obligated to serve. Arizona law requires an affirmative step. The designated person can accept by following the method described in the trust, or by simply taking action consistent with the role, such as managing trust property or exercising trustee powers.
A person designated as trustee accepts the trusteeship either: 1. By substantially complying with a method of acceptance provided in the terms of the trust. 2. If the terms of the trust do not provide a method or the method provided in the terms is not expressly made exclusive, by accepting delivery of the trust property, exercising powers or performing duties as trustee or otherwise indicating acceptance of the trusteeship.
A.R.S. § 14-10701(A)This flexibility is practical. Many successor trustees step into the role after the settlor's death or incapacity without a formal ceremony. Managing a bank account, paying a bill from trust funds, or communicating with beneficiaries can all signal acceptance.
Declining the Role and Protecting Trust Property
A designated trustee who does not want to serve can reject the trusteeship. If they fail to accept within a reasonable time after learning of the designation, the law treats them as having rejected it. There is no penalty for declining.
The statute also provides a practical safeguard. A person who has not yet accepted can still act to preserve trust property in an emergency, as long as they send a formal rejection within a reasonable time afterward. They can also inspect trust property to evaluate potential liabilities, such as environmental issues on real estate, without triggering acceptance.
A person designated as trustee who has not yet accepted the trusteeship may reject the trusteeship. A designated trustee who does not accept the trusteeship within a reasonable time after knowing of the designation is deemed to have rejected the trusteeship.
A.R.S. § 14-10701(B)This matters for successor trustees who may be caught off guard by the responsibility. The law gives them space to evaluate the situation before committing.
