A Detailed Toolkit for Trust Management
A.R.S. 14-10815 gives trustees broad general authority. This statute fills in the details. It lists more than twenty specific powers a trustee may use.
These cover nearly every type of deal or decision that might come up during the life of a trust.
Without limiting the authority conferred by section 14-10815, a trustee may: 1. Collect trust property and accept or reject additions to the trust property from a settlor or any other person. 2. Acquire or sell property, for cash or on credit, at public or private sale.
A.R.S. § 14-10816(1)-(2)The list includes managing business interests like partnerships, LLCs, and corporations. It also covers stock rights, real property improvements, leases, easements, and environmental compliance.
Trustees can borrow money and pledge trust assets as security. This can matter when the trust holds real estate or business interests.
Distributions and Day-to-Day Management
The statute also covers payments to beneficiaries who cannot manage funds on their own. A trustee can pay amounts directly to a beneficiary or apply them for the beneficiary's benefit.
Payments can also go through a conservator, guardian, or custodian under the Uniform Transfers to Minors Act.
Trustees can also appoint a separate trustee in another state to handle out-of-state property. They can insure trust assets, drop property that has no value, and settle or contest claims. The fiduciary duties from A.R.S. 14-10815 still apply to every action.