What a Trustee Can Do Without Going to Court
One key benefit of a trust is that the trustee can manage property without asking a judge. Arizona law gives trustees the power to do anything the trust document allows.
On top of that, a trustee has all the powers that an unmarried, competent owner would have over their own property.
A trustee, without authorization by the court, may exercise: 1. Powers conferred by the terms of the trust. 2. Except as limited by the terms of the trust: (a) All powers over the trust property that an unmarried competent owner has over individually owned property. (b) Any other powers appropriate to achieve the proper investment, management and distribution of the trust property.
A.R.S. § 14-10815(A)This includes buying and selling assets, managing investments, and making distributions. The trust document can limit these powers, but the default is broad authority.
Power Comes with Responsibility
Having authority is not the same as having free rein. Every power a trustee uses is subject to fiduciary duties under Arizona's trust code. This means acting loyally, wisely, and for the beneficiaries' benefit.
The exercise of a power by a person acting in a fiduciary capacity is subject to the fiduciary duties prescribed by this article.
A.R.S. § 14-10815(B)For example, a trustee who sells trust property below market value may face a breach of trust claim. The same applies to risky investments made without good reason. The scope of authority is wide, but the duty of care is always the guardrail.