Expertise Creates a Higher Bar
Not all trustees are held to the same standard. This statute says that a trustee who has special skills or professional expertise must actually use them when administering the trust. If someone became a trustee because they represented that they had particular expertise, the law holds them to that claim. This is a core part of the trustee's duty of care.
A trustee who has special skills or expertise, or who is named trustee in reliance on the trustee's representation that the trustee has special skills or expertise, shall use those special skills or expertise.
A.R.S. § 14-10806This matters most for professional trustees, such as banks, trust companies, attorneys, or financial advisors who serve in a trustee capacity. These trustees cannot claim they should be judged by the same standard as an inexperienced family member. Their professional background raises the bar. If the trustee acts below their known skill level, they may face liability. If the trustee failed to use skills they claimed to have, that failure can be the basis for a legal claim.
What This Means for Choosing a Trustee
For families selecting a successor trustee, this statute highlights an important tradeoff. A professional trustee brings expertise in trust administration and will be expected to use it. A family member may bring personal knowledge of the beneficiaries but will generally be held to the baseline prudent person standard.
The flip side is also worth noting. If a family member trustee happens to be a CPA, financial planner, or attorney, their professional background elevates the standard. They cannot set aside their fiduciary duties just because they are serving in a family capacity. The law expects them to bring their full skill set to administering the trust.
How This Protects Trust Property
This rule exists to protect trust property and the people who depend on it. When a trustee acts with less care than their training allows, beneficiaries can suffer real losses. A financial advisor who ignores investment best practices while managing trust assets is not meeting the standard.
Families should think carefully about who they name as trustee. The person's skills and background will shape what the law expects of them. Matching the right person to the role helps ensure the trust administration goes smoothly and the beneficiaries are well served.