Title 14 — Trusts, Estates and Protective Proceedings

A. Beneficial interests in a custodial trust created for multiple beneficiaries are deemed to be separate custodial trusts of equal undivided interests for each beneficiary. Except in a transfer or declaration for use and benefit of husband and wife, for whom survivorship is pres…

A. If appropriate, a custodial trustee shall register or record the instrument vesting title to custodial trust property. B. If the beneficiary is not incapacitated, a custodial trustee shall follow the directions of the beneficiary in the management, control, investment or reten…

A. 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. B. Th…

A. A custodial trustee shall pay to the beneficiary or expend for the beneficiary's use and benefit as much or all of the custodial trust property as the beneficiary while not incapacitated may direct from time to time. B. If the beneficiary is incapacitated, the custodial truste…

A. The custodial trustee shall administer the custodial trust as for an incapacitated beneficiary if either: 1. The custodial trust was created under section 14-9105. 2. The transferor has so directed in the instrument creating the custodial trust. 3. The custodial trustee has de…

A third person in good faith and without a court order may act on the instructions of or otherwise deal with a person who is purporting to make a transfer as or to act in the capacity of a custodial trustee. In the absence of knowledge to the contrary, the third person is not res…

A. A claim based on a contract entered into by a custodial trustee acting in a fiduciary capacity, an obligation arising from the ownership or control of custodial trust property or a tort committed in the course of administering the custodial trust may be asserted by a third per…

A. Before accepting the custodial trust property, a person designated as custodial trustee may decline to serve by notifying the person who made the designation, the transferor or the transferor's legal representative. If an event giving rise to a transfer has not occurred, the s…

Except as otherwise provided in the instrument creating the custodial trust, in an agreement with the beneficiary or by court order, a custodial trustee: 1. Is entitled to reimbursement from custodial trust property for reasonable expenses incurred in the performance of fiduciary…

A. On the acceptance of custodial trust property, the custodial trustee shall provide a written statement describing the custodial trust property and shall thereafter provide a written statement of the administration of the custodial trust property: 1. Once each year. 2. On reque…

A. Except as provided in subsection C, 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 delive…

A. On the termination of a custodial trust, the custodial trustee shall transfer the unexpended custodial trust property: 1. To the beneficiary, if not incapacitated or deceased. 2. To the conservator or other recipient designated by the court for an incapacitated beneficiary. 3.…

A. If a transaction, including a declaration with respect to or a transfer of specific property, otherwise satisfies applicable law, the criteria of section 14-9102 are satisfied by either: 1. The execution and either delivery to the custodial trustee or recording of an instrumen…

A. This chapter applies to a transfer or declaration creating a custodial trust that refers to this chapter if, at the time of the transfer or declaration, the transferor, beneficiary or custodial trustee is a resident of or has its principal place of business in this state or cu…

This chapter may be cited as the Arizona uniform disclaimer of property interests act.

In this chapter, unless the context otherwise requires: 1. "Disclaimant" means the person to whom a disclaimed interest or power would have passed had the disclaimer not been made. 2. "Disclaimed interest" means the interest that would have passed to the disclaimant had the discl…

This chapter applies to disclaimers of any interest in or power over property, whenever created.

A. Unless displaced by this chapter, the principles of law and equity supplement this chapter. B. This chapter does not limit any right of a person to waive, release, disclaim or renounce an interest in or power over property under a law other than this chapter.

A. A person may disclaim, in whole or in part, any interest in or power over property, including a power of appointment. A person may disclaim the interest or power even if its creator imposed a spendthrift provision or similar restriction on transfer or a restriction or limitati…

A. Except for a disclaimer governed by section 14-10007 or 14-10008, the following rules apply to a disclaimer of an interest in property: 1. The disclaimer takes effect as of the time the instrument creating the interest becomes irrevocable or, if the interest arose under the la…

A. On the death of a holder of jointly held property, a surviving holder may disclaim, in whole or in part, the greater of either: 1. A fractional share of the property determined by dividing the number one by the number of joint holders alive immediately before the death of the …

[Repealed or reserved.]

If a holder disclaims a power of appointment or other power not held in a fiduciary capacity, the following rules apply: 1. If the holder has not exercised the power, the disclaimer takes effect as of the time the instrument creating the power becomes irrevocable. 2. If the holde…

A. A disclaimer of an interest in property by an appointee of a power of appointment takes effect as of the time the instrument by which the holder exercises the power becomes irrevocable. B. A disclaimer of an interest in property by an object or taker in default of an exercise …

A. If a fiduciary disclaims a power held in a fiduciary capacity that has not been exercised, the disclaimer takes effect as of the time the instrument creating the power becomes irrevocable. B. If a fiduciary disclaims a power held in a fiduciary capacity that has been exercised…

A. Subject to subsections B through K, delivery of a disclaimer may be effected by personal delivery, first class mail or any other method likely to result in its receipt. B. In the case of an interest created under the law of intestate succession or an interest created by will, …

A. A disclaimer is barred by a written waiver of the right to disclaim. B. A disclaimer of an interest in property is barred if any of the following events occurs before the disclaimer becomes effective: 1. The disclaimant accepts the interest sought to be disclaimed. 2. The disc…

Notwithstanding any other provision of this chapter, if as a result of a disclaimer or transfer the disclaimed or transferred interest is treated, pursuant to the internal revenue code as defined in section 43-105 and rules adopted pursuant to that section, as never having been t…

If an instrument transferring an interest in or power over property subject to a disclaimer is required or permitted by law to be filed, recorded or registered, the disclaimer may be so filed, recorded or registered. Failure to file, record or register the disclaimer does not aff…

Except as otherwise provided in section 14-10013, an interest in or power over property existing on the effective date of this chapter as to which the time for delivering or filing a disclaimer under law superseded by this chapter has not expired may be disclaimed after the effec…

This chapter modifies, limits and supersedes the federal electronic signatures in global and national commerce act (P.L. 106-229; 114 Stat. 464; 15 United States Code sections 7001 through 7006) but does not modify, limit or supersede section 101(c) of that act (15 United States …

In applying and construing this chapter, consideration must be given to the need to promote uniformity of the law with respect to its subject matter among states that enact the uniform disclaimer of property interests act and to the comments adopted by the national conference of …

This chapter may be cited as the Arizona trust code.

This chapter applies to express trusts, charitable or noncharitable trusts and trusts created pursuant to a statute, judgment or decree that requires the trust to be administered in the manner of an express trust.

In this chapter, unless the context otherwise requires: 1. "Action", with respect to an act of a trustee, includes a failure to act. 2. "Beneficiary" means a person who either: (a) Has a present or future beneficial interest in a trust, vested or contingent. (b) In a capacity oth…

A. Subject to subsection B, a person has knowledge of a fact if any of the following apply: 1. The person has actual knowledge of it. 2. The person has received a notice or notification of it. 3. From all the facts and circumstances known to the person at the time in question, th…

A. Except as otherwise provided in the terms of the trust, this chapter governs: 1. The duties, powers, exercise of powers, resignation and appointment of a trustee. 2. Conflicts of interest of a trustee. 3. Relations among trustees. 4. Combinations or divisions of trusts. 5. The…

A. The common law of trusts and principles of equity supplement this chapter, except to the extent modified by this chapter or another statute of this state. B. The court shall look to the restatement (second) of trusts for interpretation of the common law and not to subsequent r…

A. The meaning and effect of the terms of a trust are determined by the law of the jurisdiction designated in the terms of the trust instrument. B. In the absence of a controlling designation in the terms of the trust, the laws of the jurisdiction where the trust was executed det…

A. Without precluding other means for establishing a sufficient connection with the designated jurisdiction, terms of a trust designating the principal place of administration are valid and controlling if either: 1. A trustee's principal place of business is located in or a trust…

A. Notice to a person under this chapter or the sending of a document to a person under this chapter must be accomplished in a manner reasonably suitable under the circumstances and likely to result in receipt of the notice or document. Permissible methods of notice or for sendin…

A. A charitable organization that is expressly and irrevocably designated to receive distributions under the terms of a charitable trust or a person appointed to enforce a trust created for the care of an animal or another noncharitable purpose as provided in section 14-10408 or …

A. Except as otherwise provided in subsection B of this section, and except for modification or termination of a trust as otherwise permitted pursuant to the trust instrument, interested persons may enter into a binding nonjudicial settlement agreement with respect to any matter …

The rules of construction that apply in this state to the interpretation of and disposition of property by will also apply as appropriate to the interpretation of the terms of a trust and the disposition of the trust property.

A provision in a trust instrument that purports to penalize an interested person for contesting the trust instrument or instituting other proceedings or actions relating to the trust property is unenforceable if probable cause exists for the contest, proceedings or actions.

A. The court may intervene in the administration of a trust to the extent its jurisdiction is invoked by an interested person or as provided by law. B. A trust is not subject to continuing judicial supervision unless ordered by the court. C. A judicial proceeding involving a trus…

A. By accepting the trusteeship of a trust having its principal place of administration in this state or by moving the principal place of administration to this state, or until otherwise declared by the trustee if a proceeding regarding a matter involving the trust is not pending…

A. The superior court has exclusive jurisdiction of proceedings in this state brought by a trustee or beneficiary concerning the administration of a trust. B. The superior court has concurrent jurisdiction with other courts of this state of other proceedings involving a trust.

A. Except as otherwise provided in subsection B, venue for a judicial proceeding involving a trust is in the county of this state in which the trust's principal place of administration is or will be located and, if the trust is created by will and the estate is not yet closed, in…

A trust instrument may provide mandatory, exclusive and reasonable procedures to resolve issues between the trustee and interested persons or among interested persons with regard to the administration or distribution of the trust.