Skip to main content
Skip to explanation
A.R.S. § 14-10904

A Trustee's First Duties After Accepting the Role

Verified April 4, 202657th Legislature, 1st Regular Session

When a new trustee takes over, the law requires them to review trust assets within a reasonable time. The trustee must then decide what to keep and what to change. As a result, the portfolio should match the trust's terms and the prudent investor standards.

Title 14, ARIZONA TRUST CODE

azleg.gov

What a New Trustee Must Do First

Accepting a trusteeship is not a passive role. The law requires action from the start. The trustee must review every asset in the trust and decide what belongs.

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. § 14-10904

This matters most for a successor trustee who inherits a portfolio they did not build. The prior trustee's choices may not match current needs or economic conditions.

Trust administration means keeping trust property in line with the trust's terms. The trustee should check that the portfolio fits the distribution schedule and investment goals.

Acting Within a Reasonable Time

The statute says "within a reasonable time," not right away. This gives the trustee room to gather information and consult with advisors.

A few weeks of careful review is generally reasonable. Sitting on a misaligned portfolio for months without acting is not.

Estate plans with a living trust should address this transition period. Naming a successor trustee who knows their duty to review assets can prevent costly delays.

The review should cover all types of trust property. This means bank accounts, investments, real estate, and business interests. Documenting each choice shows the review was thoughtful.

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.

This page provides general legal information about Arizona statutes and is not legal advice. For guidance on how this law applies to your situation, speak with a qualified attorney.

Get Started Today

Need Help With Your Estate Plan?

Whether you are just getting started or reviewing an existing plan, RJP Estate Planning works hand in hand with experienced estate planning counsel to help you understand your options.

(480) 346-3570