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A.R.S. § 14-9103

Designating a Custodial Trustee for Future Payments in Arizona

Verified April 4, 202657th Legislature, 1st Regular Session

You can name a custodial trustee to receive property when a future event occurs, such as death or account maturity. This designation can appear in a will, trust, deed, or insurance policy. It creates a custodial trust without extra court proceedings.

Title 14, UNIFORM CUSTODIAL TRUST ACT

azleg.gov

Planning Ahead for Property That Has Not Yet Transferred

Not all property transfers happen right away. Life insurance payouts, retirement accounts, and contractual rights often transfer only when a triggering event occurs. Under the Custodial Trust Act, you can name a custodial trustee in advance.

When the event happens, the property flows directly into a custodial trust. No extra court proceedings are needed.

A person having the right to designate the recipient of property payable or transferable on a future event may create a custodial trust on the occurrence of the future event by designating in writing the recipient, followed in substance by: "as custodial trustee for (name of beneficiary) under the Uniform Custodial Trust Act pursuant to title 14, chapter 9, Arizona Revised Statutes".

A.R.S. § 14-9103(A)

The designation can include substitute or successor trustees. If the first named trustee is unable or unwilling to serve, the property passes to the next person in line. This keeps the trust intact and avoids gaps in management.

Where This Designation Can Appear

The statute gives broad flexibility for placement. It can appear in a will, a trust document, a deed, or an insurance policy. It can also appear in a power of appointment or any writing that names a beneficiary.

A designation under this section may be made in a will, a trust, a deed, a multiple-party account, an insurance policy, an instrument exercising a power of appointment or a writing designating a beneficiary of contractual rights.

A.R.S. § 14-9103(C)

For the designation to work outside of these instruments, it must be registered with the right party. That means the fiduciary, payor, issuer, or obligor responsible for the future right must receive it. This ensures the property reaches the trust when the event occurs.

14-9103. Custodial trustee for future payment or transfer A. A person having the right to designate the recipient of property payable or transferable on a future event may create a custodial trust on the occurrence of the future event by designating in writing the recipient, followed in substance by: "as custodial trustee for (name of beneficiary) under the Uniform Custodial Trust Act pursuant to title 14, chapter 9, Arizona Revised Statutes". B. Persons may be designated as substitute or successor custodial trustees to whom the property must be paid or transferred in the order named if the first designated custodial trustee is unable or unwilling to serve. C. A designation under this section may be made in a will, a trust, a deed, a multiple-party account, an insurance policy, an instrument exercising a power of appointment or a writing designating a beneficiary of contractual rights. Otherwise, to be effective, the designation must be registered with or delivered to the fiduciary, payor, issuer or obligor of the future right.

This page provides general legal information about Arizona statutes and is not legal advice. For guidance on how this law applies to your situation, speak with a qualified attorney.

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