Broad Authority With Built-In Limits
Arizona gives custodial trustees significant flexibility. The law grants them all the rights and powers that an unmarried adult owner would have over individually owned property. That means a custodial trustee can buy, sell, invest, reinvest, lease, insure, and otherwise manage the trust property without needing to get court permission 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. It means every decision the custodial trustee makes must be for the beneficiary's benefit. The trustee cannot use trust property for personal purposes, cannot take personal advantage of trust opportunities, and cannot put their own interests ahead of the beneficiary's.
Accountability Remains
Broad powers do not mean unlimited discretion. The statute explicitly states that having wide authority does not relieve the trustee from liability under A.R.S. 14-9107. That section sets the standard of care, record-keeping obligations, 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, this means a custodial trustee who mismanages property, fails to keep proper records, or commingles trust funds with personal assets can be held liable, regardless of how broad their general powers may be. The authority to act comes paired with the duty to act responsibly.
