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A.R.S. § 14-10801

Duty to Administer a Trust in Good Faith

Verified April 4, 202657th Legislature, 1st Regular Session

Once a trustee accepts the role, the law requires them to manage the trust in good faith. They must follow its terms and purposes, act in the beneficiaries' best interests, and comply with the trust code. This is the foundational obligation every trustee carries.

Title 14, ARIZONA TRUST CODE

azleg.gov

What Acceptance Triggers

Agreeing to serve as trustee is not a ceremonial step. The moment a trustee accepts the role, a set of fiduciary duties locks into place. This statute sets the baseline: every action the trustee takes must reflect good faith, align with the terms of the trust, and serve the interests of the beneficiaries.

On acceptance of a trusteeship, the trustee shall administer the trust in good faith, in accordance with its terms and purposes and the interests of the beneficiaries and in accordance with this chapter.

A.R.S. § 14-10801

Good faith means more than avoiding dishonesty. It requires exercising reasonable care and attention, making decisions that align with the purpose of the trust. A trustee who ignores the trust document or prioritizes convenience over the beneficiaries' welfare is not meeting this standard. The trustee's duties include following every instruction the trust lays out.

Why the Trust Document Matters

The trust's terms and purposes act as the trustee's instruction manual. A well-drafted trust spells out who receives distributions, when, and under what conditions. The trustee does not get to improvise. If the trust says distribute income quarterly, the trustee distributes income quarterly. If the trust restricts principal distributions to health and education, the trustee follows that restriction.

These fiduciary duties connect to other obligations like the duty of loyalty and the prudent investor rule. Together, they form a complete framework for how trust property must be handled. A trustee who understands these responsibilities from the start is better prepared to serve the beneficiaries well.

This is also why working with experienced estate planning counsel during the drafting stage is so valuable. Clear, specific trust language gives the trustee a roadmap. It reduces the chance of disputes among beneficiaries later.

On acceptance of a trusteeship, the trustee shall administer the trust in good faith, in accordance with its terms and purposes and the interests of the beneficiaries and in accordance with this chapter.

This page provides general legal information about Arizona statutes and is not legal advice. For guidance on how this law applies to your situation, speak with a qualified attorney.

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