Broad Authority With Built-In Limits
The statute gives custodial trustees a wide range of tools. The law grants them all the rights and powers that an adult owner has over their own property.
This means a trustee can buy, sell, invest, lease, insure, and manage trust property. No court permission is needed for each transaction.
A custodial trustee, acting in a fiduciary capacity, has all the rights and powers over custodial trust property that an unmarried adult owner has over individually owned property, but a custodial trustee may exercise those rights and powers in a fiduciary capacity only.
A.R.S. § 14-9108(A)The phrase "in a fiduciary capacity only" is the critical qualifier. Every decision must be for the beneficiary's benefit. The trustee cannot use trust property for personal purposes.
Accountability Remains
Broad powers do not mean unlimited discretion. The statute makes clear that wide authority does not remove liability under A.R.S. 14-9107.
That section sets the standard of care for a prudent person. It also covers record-keeping and the duty to keep trust property separate from personal assets.
This section does not relieve a custodial trustee from liability for a violation of section 14-9107.
A.R.S. § 14-9108(B)In practice, a trustee who mismanages property, fails to keep records, or mixes trust funds with personal assets can be held liable. The authority to act comes paired with the duty to act well.
The trustee's powers are broad, but every action must serve the beneficiary. That standard applies whether the trust property is a bank account, real estate, or any other asset.
Families choosing a trustee should look for someone who understands these duties. The right skills and commitment are key to protecting the beneficiary's interests.