Claims Against Custodial Property
When someone has a legal claim connected to custodial property, whether from a contract, an ownership obligation, or a tort, they can pursue it against the custodial property directly. The claim is brought by proceeding against the custodian in the custodial capacity. This approach works regardless of whether the custodian or the minor bears personal responsibility.
A claim based on a contract entered into by a custodian acting in a custodial capacity, an obligation arising from the ownership or control of custodial property or a tort committed during the custodianship may be asserted against the custodial property by proceeding against the custodian in the custodial capacity, whether or not the custodian or the minor is personally liable.
A.R.S. § 14-7667(A)This structure ensures that creditors have a clear path to recovery from the property itself, while also protecting the individuals involved from automatic personal exposure.
Personal Liability Protections
The statute creates a practical shield for custodians. On the contract side, a custodian is not personally liable as long as the contract identifies the custodial capacity and the custodianship. If a custodian signs a lease or enters a contract without disclosing the custodial role, that protection disappears.
A custodian is not personally liable for either: 1. A contract properly entered into in the custodial capacity unless the custodian fails to reveal that capacity and to identify the custodianship in the contract.
A.R.S. § 14-7667(B)For obligations tied to property ownership or torts that occur during the custodianship, the custodian is only personally liable if they are personally at fault. The same rule applies to the minor. A minor is not on the hook for ownership obligations or torts unless the minor is personally responsible for the wrongdoing. These protections encourage responsible people to serve as custodians without fear of open-ended personal exposure.
