Who This Restriction Applies To
Arizona licenses professional fiduciaries who manage estates, trusts, and guardianships for compensation. When one of these professionals has their license suspended or revoked under A.R.S. 14-5651, this statute blocks them from serving as a trustee in any capacity. The restriction exists to protect trust beneficiaries from individuals who have already demonstrated conduct serious enough to warrant disciplinary action.
A person whose license as a fiduciary has been suspended or revoked pursuant to section 14-5651 may not serve as a trustee in any capacity unless the person is related to the beneficiary by blood, adoption or marriage.
A.R.S. § 14-10820The language is broad. It covers every type of trustee role, whether as an initial trustee, successor trustee, or co-trustee. The prohibition is automatic once the license is suspended or revoked.
The Family Exception
There is one narrow exception. A fiduciary with a suspended or revoked license may still serve as trustee if they are related to the beneficiary by blood, adoption, or marriage. The reasoning is straightforward: family members often serve as trustees regardless of professional licensing, and the family relationship provides a separate basis for trust and accountability.
If the fiduciary's license is later reinstated and returned to good standing, the prohibition no longer applies. They may resume serving as trustee for any trust, not just those involving family members. This statute reinforces the importance of verifying a professional fiduciary's licensing status before naming them in a trust document.
