What Beneficiaries Are Entitled to Know
A trust is not a black box. Arizona's trust code gives beneficiaries the right to stay informed about trust assets.
When someone is a qualified beneficiary, the trustee must share key facts about the trust. The trustee must do this on their own, not just when asked.
A trustee shall keep the qualified beneficiaries of the trust reasonably informed about the administration of the trust and of the material facts necessary for them to protect their interests.
A.R.S. § 14-10813(A)This means beneficiaries do not have to guess if the trustee is doing their job. They can request copies of relevant parts of the trust document.
When a trustee accepts a new role or a trust becomes irrevocable, the trustee must notify beneficiaries within sixty days. This often happens after the settlor's death.
Annual Reports and Pay Transparency
The statute also requires a yearly accounting. The trustee must send a report covering trust property, debts, receipts, and payments. It must also list the trustee's pay and trust assets with market values when possible.
A trustee shall send to the distributees or permissible distributees of trust income or principal and to other beneficiaries who request it, at least annually and at the termination of the trust, a report of the trust property, liabilities, receipts and disbursements, including the source and amount of the trustee's compensation.
A.R.S. § 14-10813(C)Trustees must also give at least thirty days' notice before changing their pay. A beneficiary can waive the right to reports. However, they can take back that waiver at any time for future reports.
Transparency is the default. The trustee carries the burden of keeping it up.