The Standard Deadlines
Every legal claim has a time limit, and claims against custodial trustees are no different. This statute sets two baseline periods depending on whether the beneficiary received a final accounting from the trustee.
Unless previously barred by adjudication, consent or limitation, a claim for relief against a custodial trustee for accounting or breach of duty is barred as to a beneficiary, a person to whom custodial trust property is to be paid or delivered or the legal representative of an incapacitated or deceased beneficiary or payee who has received a final account or statement fully disclosing the matter unless an action or proceeding to assert the claim is commenced within two years after receipt of the final account or statement.
A.R.S. § 14-9116(A)(1)If the trustee provided a final accounting that fully disclosed the relevant matter, the clock starts when the beneficiary received it, and the claim must be filed within two years. If no final accounting was provided, the beneficiary has three years from the termination of the custodial trust to bring a claim.
Fraud Gets a Longer Window, and Some Claimants Get Extra Time
When the claim involves fraud, misrepresentation, or concealment related to the final settlement of the trust, or concealment of the trust's existence itself, the limitation period extends to five years after the trust terminates.
The statute also protects vulnerable claimants. A minor's deadline does not begin until two years after reaching adulthood or death, whichever comes first. An incapacitated adult gets two years from the appointment of a conservator, the removal of the incapacity, or death. Even for a competent adult who has since passed away, their estate has two years from the date of death to bring a claim. These extensions ensure that people who could not reasonably have acted sooner are not shut out by rigid deadlines.
