When the Document Is Silent
Not every will or trust covers transfers to a minor. This statute fills that gap. It lets a personal representative, trustee, or conservator transfer property to a custodian under the UTMA, even without specific permission in the document.
A personal representative or trustee may make an irrevocable transfer to another adult or trust company as custodian for the benefit of a minor pursuant to section 14-7659 in the absence of a will or under a will or trust that does not contain an authorization to do so.
A.R.S. § 14-7656(A)A conservator has the same authority. This means a court-appointed conservator can also set up a UTMA account for the child.
Three Conditions That Must Be Met
The statute does not give unlimited freedom. Three rules must all be met before a transfer can go forward.
A transfer pursuant to subsection A or B of this section may be made only if all of the following apply: 1. The personal representative, trustee or conservator considers the transfer to be in the best interest of the minor. 2. The transfer is not prohibited by or inconsistent with provisions of the applicable will, trust agreement or other governing instrument. 3. The transfer is authorized by the court if it exceeds ten thousand dollars in value.
A.R.S. § 14-7656(C)The ten-thousand-dollar limit is the key safeguard. Smaller transfers can go forward on the fiduciary's judgment alone. Anything above that amount needs a court order.
Practical Impact for Families
The custodian manages the assets until the minor grows up. This covers real estate, investment accounts, and other holdings. When the minor reaches the age of majority, the property transfers to them outright.
A fiduciary who knows these rules can move smaller amounts into a UTMA account quickly. For larger transfers, the court approval step adds protection for the minor.