Declining, Resigning, and Naming a Successor
A nominated custodian does not have to accept the role. They can decline by delivering a valid disclaimer before the transfer takes place. If no substitute was already named, the person who made the nomination can choose a replacement.
A sitting custodian can also resign at any time. They must deliver written notice to the minor (if the minor is at least fourteen) and to the successor. Then they hand over the custodial property.
A custodian at any time may designate a trust company or an adult other than a transferor pursuant to section 14-7654 as successor custodian by executing and dating an instrument of designation before a subscribing witness other than the successor.
A.R.S. § 14-7668(B)Planning ahead matters here. A custodian who names a successor in advance can make the transition smooth. Without that step, the process gets more complex and may need court involvement.
When the Court Steps In
If a custodian dies or becomes unable to serve without naming a successor, the minor may have a role. A minor who is at least fourteen can pick a successor. They can choose from adult family members, a conservator, or a trust company.
If the minor is under fourteen or does not act within sixty days, the conservator of the minor takes over. If there is no conservator, any interested person can petition the court.
A transferor, the legal representative of a transferor, an adult member of the minor's family, a guardian of the person of the minor, the conservator of the minor or the minor if the minor is at least fourteen years of age may petition the court to remove the custodian for cause and to designate a successor custodian.
A.R.S. § 14-7668(F)Removal for cause is also an option. Family members, guardians, conservators, or the minor (if fourteen or older) can petition to have a custodian removed. The court can also require the custodian to post a bond in those cases. This layered approach keeps custodial property protected until the minor reaches adulthood.