What a New Trustee Must Do First
Accepting a trusteeship is not a passive role. From the moment a trustee steps in, whether as an initial trustee or a successor taking over after the prior trustee's departure, Arizona law requires action. The trustee must review every asset in the trust and decide what belongs and what does not.
Within a reasonable time after accepting a trusteeship or receiving trust assets, a trustee shall review the trust assets and make and implement decisions concerning the retention and disposition of assets in order to bring the trust portfolio into compliance with the purposes, terms, distribution requirements and other circumstances of the trust and with the requirements of this article.
A.R.S. § 14-10904This is especially important for successor trustees who inherit a portfolio they did not build. The prior trustee's investment choices may not match the current beneficiaries' needs, economic conditions, or the trust's distribution schedule.
Acting Within a Reasonable Time
The statute says "within a reasonable time," not immediately. This gives the trustee room to gather information, consult with financial advisors, and make informed decisions rather than rushing into changes. A few weeks of careful review is generally reasonable. Sitting on a misaligned portfolio for months without taking any steps is not.
For successor trustees stepping into an unfamiliar situation, this statute serves as both a guide and a protection. It tells you what the law expects, and following it demonstrates that you took the role seriously. Documenting each decision, even if the decision is to keep an existing investment, shows that the review happened and was thoughtful.
