Duties of a Trustee – Arizona

In Arizona, the individual or entity in charge of administering a trust is called the “trustee.” The trustee is bound by provisions of the trust, as well as Arizona law which imposes on the trustee several obligations commonly referred to as “fiduciary duties.” The duties of the trustee include but are not limited to: 

1. Duty to Administer. A trustee must administer the trust in good faith, in accordance with its terms and the interests of the beneficiaries. A.R.S. 14-10801. 

2. Duty of Loyalty. A trustee must administer the trust solely in the interests of the beneficiaries. A.R.S. 14-10802. 

3. Duty of Impartiality. A trustee must act impartially in investing, managing, and distributing the trust property with regard to the beneficiaries’ interests. A.R.S. 14-10803. 

4. Duty of Prudent Administration. A trustee must administer the trust as a prudent person would, using reasonable care, skill, and caution. A.R.S. 14-10804. 

5. Duty to Comply with the Prudent Investor Rule. A.R.S. 14-10901, et seq. 

6. Duty to Incur Only Reasonable Costs. A.R.S. 14-10805. 

7. Duty to Use Special Skills. A.R.S. 14-10806. 

8.  Duty to Control and Protect Trust Property. A.R.S. 14-10809. 

9. Duty to Keep Records and Identify Trust Property. A.R.S. 14-10810. 

10. Duty to Enforce and Defend the Trust’s Claims. A.R.S. 14-10811. 

11. Duty to Collect Trust Property. A trustee must take reasonable steps to compel delivery of trust property and to redress a breach of trust known to the trustee to have been committed by a former trustee. A.R.S. 14-10812. 

12. Duty to Inform and Report Trust-related information to Beneficiaries. A.R.S. 14-10813. 

Administering a trust is a serious responsibility. Where appropriate and necessary, a trustee may and should seek legal counsel in administering a trust.

Contact Cody Huffaker at Copper Canyon Law

Cody Huffaker is a founding member of Copper Canyon Law. Cody’s practice focuses on trust and estate litigation, business litigation and dispute resolution, and construction litigation. Cody has significant experience in will contest litigation, both defending and contesting the validity of wills.