A Detailed Toolkit for Trust Administration
While A.R.S. 14-10815 gives trustees broad general authority, this statute provides the specifics. It lists more than twenty distinct powers a trustee may exercise, covering nearly every type of transaction or management 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 (partnerships, LLCs, corporations), exercising stock rights, making real property improvements, entering leases, granting easements, and handling environmental compliance. Trustees can also borrow money and pledge trust assets as security, which can be important when managing real estate or business holdings inside the trust.
Distributions and Practical Management
The statute also addresses how trustees handle payments to beneficiaries who cannot manage funds themselves. A trustee can pay amounts directly to a beneficiary, apply them for the beneficiary's benefit, or route them through a conservator, guardian, or custodian under the Uniform Transfers to Minors Act.
Trustees can also appoint a separate trustee in another jurisdiction to handle out-of-state property, insure trust assets, abandon property that has no value, and settle or contest claims. These powers give trustees the practical flexibility to manage a trust without running to court for every decision, while the fiduciary duties from A.R.S. 14-10815 still apply to every action.
