Following the Testator's or Settlor's Instructions
A well-drafted will or trust often includes instructions for handling property that passes to a minor. This statute gives the personal representative or trustee the authority to carry out those instructions by making an irrevocable 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 person who created the will or trust nominated a custodian under Section 14-7653, the transfer must go to that person. This keeps the original planning intent intact rather than leaving the choice to someone else.
When No Custodian Was Named
Plans do not always anticipate every scenario. A nominated custodian might pass away, decline to serve, or become ineligible before the transfer happens. When that occurs, the personal representative or trustee steps in and selects an eligible custodian from those qualified under Section 14-7659.
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 mechanism is one reason the UTMA works well in practice. Even if the original custodian nomination falls through, the statute provides a clear path forward. The fiduciary makes the selection, and the transfer proceeds without requiring a separate court proceeding. For families setting up an estate plan, naming both a primary custodian and at least one substitute in the original document is a practical safeguard.
