Getting Trust Assets Where They Belong
When a new trustee steps in, whether after a resignation, removal, or death, one of their first obligations is straightforward but critical: collect the trust property from whoever held it before.
A trustee shall take reasonable steps to compel a former trustee or other person to deliver trust property to the trustee and to redress a breach of trust known to the trustee to have been committed by a former trustee.
A.R.S. § 14-10812This statute covers two related duties. First, the new trustee must pursue the transfer of trust assets. If a former trustee is holding onto accounts, property, or records that belong to the trust, the successor trustee has a legal obligation to demand their return. This is not discretionary.
Addressing a Former Trustee's Misconduct
Second, if the new trustee becomes aware that the previous trustee committed a breach of trust, they must take reasonable steps to address it. That could mean recovering misappropriated funds, filing a legal claim, or seeking court intervention.
The trigger is knowledge. The statute says "known to the trustee." A successor trustee is not required to conduct an exhaustive investigation into every prior decision. But if they discover evidence of mismanagement, self-dealing, or misuse of trust assets, they cannot simply look the other way.
For families navigating a trustee transition, this statute provides an important safeguard. It ensures that the new trustee has both the authority and the obligation to hold the former trustee accountable and to bring trust assets under proper control.
