The Transition Period
Resignation or removal does not end a trustee's obligations overnight. Until the trust property is actually delivered to the right person, the outgoing trustee remains responsible for protecting it. This prevents a gap in oversight where assets could be lost, damaged, or mismanaged.
Unless a cotrustee remains in office or the court otherwise orders, and until the trust property is delivered to a successor trustee or other person entitled to it, a trustee who has resigned or been removed has the duties of a trustee and the powers necessary to protect the trust property.
A.R.S. § 14-10707(A)If a cotrustee is still serving, the former trustee's continuing duties may not apply because someone is already in place to manage the assets. But when no cotrustee remains, the outgoing trustee stays on the hook until the handoff is complete.
The Obligation to Act Quickly
Arizona does not leave the timeline open-ended. The statute requires the former trustee to proceed "expeditiously" in delivering trust property.
A trustee who has resigned or been removed shall proceed expeditiously to deliver the trust property in the trustee's possession to the cotrustee, successor trustee or other person entitled to it.
A.R.S. § 14-10707(B)This matters for beneficiaries waiting on a transition. A former trustee who drags their feet on delivering accounts, records, or property could face legal consequences. The word "expeditiously" gives courts a clear standard to enforce if the transition stalls.
