The duty to inform and report under Arizona law

Who is kept informed

Unless the trust instrument provides otherwise, a trustee keeps the qualified beneficiaries reasonably informed about the administration of the trust and of the material facts necessary for them to protect their interests, and promptly responds to a beneficiary's request for information related to the administration unless the trustee determines that is unreasonable under the circumstances (A.R.S. § 14-10813(A)). On request, the trustee promptly furnishes a copy of the portions of the instrument necessary to describe the beneficiary's interest (§ 14-10813(B)(1)).

The instrument may modify the duty, with one floor it cannot lower: a qualified beneficiary of an irrevocable trust keeps the right to a response to a request for the trustee's reports and other information reasonably related to the administration (A.R.S. § 14-10105(B)(8)).

The notices

Within sixty days after accepting a trusteeship, the trustee notifies the qualified beneficiaries of the acceptance and of the trustee's name, address and telephone number (A.R.S. § 14-10813(B)(2)). Within sixty days after acquiring knowledge of the creation of an irrevocable trust, or that a formerly revocable trust has become irrevocable, the trustee notifies them of the trust's existence, the identity of the settlor or settlors, the trustee's contact details, the right to request the relevant portions of the instrument and the right to a report (§ 14-10813(B)(3)). The trustee also gives at least thirty days' advance notice of any change in the method or rate of compensation (§ 14-10813(B)(4)).

The two sixty-day notices apply only to a trustee who accepts, an irrevocable trust created, or a revocable trust that becomes irrevocable on or after January 1, 2009 (A.R.S. § 14-10813(E)); a person entitled only to specific distributions already made is a qualified beneficiary for the notice of acceptance alone (§ 14-10813(F)).

The trustee's report

At least annually and at the termination of the trust, the trustee sends the distributees or permissible distributees of trust income or principal, and other beneficiaries who request it, a report of the trust property, liabilities, receipts and disbursements, including the source and amount of the trustee's compensation, a listing of the trust assets and, if feasible, their respective market values (A.R.S. § 14-10813(C)). On a vacancy with no cotrustee in office, the former trustee sends it; a personal representative, conservator or guardian may send it for a deceased or incapacitated trustee.

A beneficiary may waive the right to a report or other information and may withdraw the waiver as to future reports (A.R.S. § 14-10813(D)).

The period a report can start

A beneficiary may not commence a proceeding against a trustee for breach of trust more than one year after being sent a report that adequately disclosed the existence of a potential claim and informed the beneficiary of the time allowed for commencing a proceeding; a report adequately discloses a claim if it provides sufficient information so that the beneficiary knows of it or should have inquired into its existence (A.R.S. § 14-11005(A), (B)). Where that rule does not apply, the period is two years after the first of the trustee's removal, resignation or death, the end of the beneficiary's interest and the trust's termination (§ 14-11005(C)). Whether a particular report adequately disclosed a particular matter is a question for a licensed Arizona attorney, not a fact a record can settle on its own.

The statutes, verbatim

• Definitions

  A.R.S. § 14-10103 ↗

  Clear, simple explanation; the verbatim statute text is not yet attested in our library. See the official statute via the link above.

• Default and mandatory rules

  A.R.S. § 14-10105 ↗

  Clear, simple explanation; the verbatim statute text is not yet attested in our library. See the official statute via the link above.

• Duty to inform and report

  A.R.S. § 14-10813 ↗

  Clear, simple explanation; the verbatim statute text is not yet attested in our library. See the official statute via the link above.

• Limitation of action against trustee

  A.R.S. § 14-11005 ↗

  Clear, simple explanation; the verbatim statute text is not yet attested in our library. See the official statute via the link above.

Common questions

Frequently asked questions

What must an Arizona trustee tell the beneficiaries when a trust becomes irrevocable?

Within sixty days after acquiring knowledge of it: the trust's existence, the identity of the settlor or settlors, the trustee's name, address and telephone number, the right to request a copy of the relevant portions of the trust instrument and the right to a trustee's report (A.R.S. § 14-10813(B)(3)).

Who receives an Arizona trustee's report?

The distributees or permissible distributees of trust income or principal, and other beneficiaries who request it — at least annually and at the termination of the trust (A.R.S. § 14-10813(C)).

Can an Arizona trust instrument remove the duty to inform?

The instrument may modify the duty, but a qualified beneficiary of an irrevocable trust keeps the right to a response to a request for reports and other information reasonably related to the administration (A.R.S. § 14-10105(B)(8)).

General information about Arizona law, not legal advice.