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. § 14-10904This 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.