Acceptance Is Not Automatic
Just because a trust agreement names someone as trustee does not mean they must serve. The 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. Managing trust property, exercising trustee powers, or beginning to administer the trust all count as acceptance.
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 person who created the trust passes away or becomes incapacitated. There is no formal ceremony required. 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 trustee has no fiduciary duties until they accept.
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)The statute also provides a practical safeguard. A person who has not yet accepted can still act to preserve trust property in an emergency. They must send a formal rejection within a reasonable time afterward. They can also inspect trust property, including real estate, to evaluate potential liabilities without triggering acceptance.
For families, this matters because a successor trustee may be caught off guard by the responsibility. The law gives them space to evaluate the situation. They can review the trust agreement, understand the administration of the trust, and decide whether they are prepared to take on the fiduciary duties involved.
If no designated trustee accepts, the court can step in to appoint one. This ensures the trust and its beneficiaries are never left without someone to manage the property, including assets like real estate, investments, and bank accounts.