Following the Instructions in a Will or Trust
A well-drafted will or trust often covers what happens when property goes to a minor. This statute lets the personal representative or trustee carry out those instructions. They do so by making a permanent transfer to a custodian under the UTMA.
A personal representative or trustee may make an irrevocable transfer pursuant to section 14-7659 to a custodian for the benefit of a minor as authorized in the governing will or trust.
A.R.S. § 14-7655(A)If the will or trust already named a custodian, the transfer must go to that person. This keeps the original plan intact. The custodian then manages the property until the minor grows up.
When No Custodian Was Named
Plans do not always cover every situation. A named custodian might pass away, decline to serve, or become ineligible. When that happens, the personal representative or trustee picks an eligible custodian.
If the testator or settlor has not nominated a custodian pursuant to section 14-7653, or all persons so nominated as custodian die before the transfer or are unable, decline or are ineligible to serve, the personal representative or the trustee, as the case may be, shall designate the custodian from among those eligible to serve.
A.R.S. § 14-7655(C)This backup process is one reason the UTMA works well. The fiduciary makes the choice, and the transfer goes forward without a separate court case.
How This Fits Into Estate Planning
For small estates, a custodial transfer can be simpler than setting up a trust. Trusts take more planning but offer greater control over when and how property goes out.
Real estate, investment accounts, and other assets can all pass this way. Naming both a primary and a backup custodian in the original document helps avoid delays.