Why the Creation Date Matters
Arizona's rule against perpetuities sets a maximum time period for a property interest subject to the rule to vest. Measuring that period requires a starting point. This statute establishes when the clock begins to run. The answer is not always obvious.
Except as provided in subsections B and C of this section and section 14-2905, subsection C, the time of creation of a nonvested property interest or a power of appointment is determined under general principles of property law.
A.R.S. § 14-2902(A)Under general property law principles, the creation date is typically the date the trust instrument is signed. For a will, it is the date the will takes effect at the testator's death. This straightforward rule works for most estate plans.
Exceptions That Shift the Starting Point
Two important exceptions can delay when the clock starts. First, if a single person holds the power to become the outright owner of the property, the interest is not considered "created" until that power ends. This means a revocable trust does not start the perpetuities clock while the trustor can still revoke it.
If there is a person who alone can exercise a power created by a governing instrument to become the unqualified beneficial owner of a nonvested property interest or a property interest subject to a power of appointment described in section 14-2901, subsection B or C, the nonvested property interest or power of appointment is created when that person's power to become the unqualified beneficial owner terminates.
A.R.S. § 14-2902(B)Second, when assets are added to an existing trust, the interest in those new assets is treated as created at the same time as the original contribution. This prevents someone from resetting the clock by making additional transfers to the same trust.