What a Trustee Can Do Without Going to Court
One of the practical advantages of a trust is that the trustee can manage property without asking a judge for permission. Arizona law gives trustees the authority to exercise any power granted in the trust instrument, along with all the powers an unmarried, competent owner would have over individually owned 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)That includes buying and selling assets, managing investments, making distributions, and handling day-to-day administration. The trust document can limit these powers, but the default is broad authority.
Power Comes with Responsibility
The statute makes one thing clear: having authority is not the same as having free rein. Every power a trustee exercises is subject to the fiduciary duties outlined in Arizona's trust code. That means acting loyally, prudently, and in the best interests of the beneficiaries.
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)A trustee who sells trust property at a below-market price or makes speculative investments without justification may face a breach of trust claim, even if the trust instrument technically allowed the transaction. The scope of authority is wide, but the duty of care is always the guardrail.
