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Arizona Living Trust Form (Revocable)

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Arizona Living Trust Form (Revocable)

Updated May 06, 2024

An Arizona living trust is a probate document that allows an individual (grantor) to place their assets in a trust managed by a trustee for the grantor’s lifetime. After death, the trust’s assets will be distributed to the beneficiaries by the named successor trustee in the document.

Requirements (4)

  1. Mental Capacity: A person creating a trust must have the mental capacity to do so;
  2. Named Beneficiaries: The trust must have a named beneficiary, such as individuals, charitable organizations, animals, or other 3rd parties.
  3. Trustee’s Duties: The trustee has duties to perform (such as managing the trust and distribution upon the grantor’s death; and
  4. Cannot be Same Person: The same person cannot be the sole trustee and the sole beneficiary.[1]

Laws

Amending/Revoking – Unless a trust document specifically states it is irrevocable, a trust can be revoked or amended.[2]

Bond Requirement – A trustee is not required to obtain a bond unless the trust requires it or it is requested by a court.[3]

Duty to Inform – A trustee must inform the beneficiaries about the trust administration and information necessary to protect their assets. In addition, a trustee must inform beneficiaries within 60 days of accepting the trustee position and give their name, address, and phone number.[4]

Evidence of Oral Trust – An oral trust can be created with “clear and convincing evidence.”[5]

Penalty for Contesting a Trust – If there is language in a trust document that prohibits contesting the terms of a trust, such terms are unenforceable if probable cause exists for such a contest.[6]

Pet Trust – A trust is legally made for a pet to care for an animal. A person interested in the animal’s welfare can petition a court to confirm that proper care is being administered and remove the pet trustee if necessary.[7]

Trustee’s Compensation – Unless a trust specifically mentions the trustee’s compensation, a trustee is entitled to “reasonable” compensation given the circumstances of the trust.[8]

Trustee’s Duties – The trustee is responsible for administering the trust[9] and solely in the interest of the beneficiaries.[10]

Trustee’s Powers – Upon appointment and without permission from a 3rd party, a trustee has the authority to exercise the powers granted to them under the trust document.[11] Powers granted to the trustee include but are not limited to, the buying, selling, or managing of assets held in the trust.[12]

Trustee’s Reimbursement of Expenses – A trustee is entitled to be reimbursed from the trust’s assets, and with reasonable interest, for expenses related to properly managing the trust.[13] Such expenses include attorney’s fees and costs that arise from the trust’s management.[14]

Trustee’s Reporting – On an annual basis, a trustee must report the trust’s assets, liabilities, receipts, and disbursements to the beneficiaries.[15] Beneficiaries can waive the right to a trustee’s report if it is unnecessary.[16]

Trustee’s Resignation – If a trustee is to remove themselves from a trust, they must provide at least 30 days’ notice to the trust’s beneficiaries and the grantor (if living).[17]

Trust Certificate – Upon request by a 3rd party (other than a beneficiary), a trustee may create a trust certificate instead of providing a copy of a trust that mentions the following:

  • The trust is valid, exists, and the date of execution;
  • Grantor’s name;
  • Trustee’s name and address;
  • Trustee’s specific powers;
  • If the trust is revocable;
  • If more than one trustee is named, a description of how authority over the trust is managed; and
  • The manner of taking title to trust property.[18]

Trusts Made in Another State – A trust made in another State is valid in Arizona.[19]

Sources

  1. ARS § 14-10402
  2. ARS § 14-10602(A)
  3. ARS § 14-10702(A)
  4. ARS § 14-10813(A)
  5. ARS § 14-10407
  6. ARS § 14-10113
  7. ARS § 14-10408
  8. ARS § 14-10708(A)
  9. ARS § 14-10801
  10. ARS § 14-10802
  11. ARS § 14-10815
  12. ARS § 14-10816
  13. ARS § 14-10709
  14. ARS § 14-11004
  15. ARS § 14-10813(B)(3)
  16. ARS § 14-10813(D)
  17. ARS § 14-10705
  18. ARS § 14-11013(A)
  19. ARS § 14-10403