reglab/statecodes huggingface dataset:
2023 Arizona Revised Statutes › Title 14 - Trusts, Estates and Protective Proceedings › § 14-10708 - Compensation of trustee

14-10708.
Compensation of trustee
A. If the terms of a trust do not specify the trustee's compensation,  a trustee is entitled to compensation that is reasonable under the circumstances.
B. If the terms of a trust specify the trustee's compensation or refer to another ascertainable source for determining that compensation,  the trustee is entitled to be compensated as specified,  but the court may allow more or less compensation if either:
1. The duties of the trustee are substantially different from those contemplated when the trust was created.
2. The compensation specified by the terms of the trust would be unreasonably low or high.
2023 Arizona Revised Statutes › Title 14 - Trusts, Estates and Protective Proceedings › § 14-10709 - Reimbursement of expenses

14-10709.
Reimbursement of expenses
A. A trustee is entitled to be reimbursed out of the trust property,  with reasonable interest,  for:
1. Expenses that were properly incurred in the administration of the trust.
2. To the extent necessary to prevent unjust enrichment of the trust,  expenses that were not properly incurred in the administration of the trust.
B. An advance by the trustee of money for the protection of the trust gives rise to a lien against trust property to secure reimbursement with reasonable interest.
2023 Arizona Revised Statutes › Title 14 - Trusts, Estates and Protective Proceedings › § 14-10804 - Prudent administration

14-10804.
Prudent administration
A trustee shall administer the trust as a prudent person would,  by considering the purposes,  terms,  distributional requirements and other circumstances of the trust. In satisfying this standard,  the trustee shall exercise reasonable care,  skill and caution.
2023 Arizona Revised Statutes › Title 14 - Trusts, Estates and Protective Proceedings › § 14-10807 - Delegation by trustee

14-10807.
Delegation by trustee
A. A trustee may delegate duties and powers that a prudent trustee of comparable skills could properly delegate under the circumstances. The trustee shall exercise reasonable care,  skill and caution in:
1. Selecting an agent.
2. Establishing the scope and terms of the delegation,  consistent with the purposes and terms of the trust.
3. Periodically reviewing the agent's actions in order to monitor the agent's performance and compliance with the terms of the delegation.
B. In performing a delegated function,  an agent owes a duty to the trust to exercise reasonable care to comply with the terms of the delegation.
C. A trustee who complies with subsection A is not liable to the beneficiaries or to the trust for an action of the agent to whom the function was delegated.
D. By accepting a delegation of powers or duties from the trustee of a trust that is subject to the law of this state,  an agent submits to the jurisdiction of the courts of this state.
2023 Arizona Revised Statutes › Title 14 - Trusts, Estates and Protective Proceedings › § 14-10808 - Powers to direct

14-10808.
Powers to direct
A. While a trust is revocable,  the trustee may follow a direction of the settlor that is contrary to the terms of the trust.
B. If the trust provides that the assets in the trust are subject to the direction of the settlor or a cotrustee,  beneficiary or third party,  the trustee has no duty to review the directions it is directed to make or to notify the beneficiaries regarding any investment action taken pursuant to the direction. The trustee is not responsible for the purchase,  monitoring,  retention or sale of assets that are subject to the direction of the settlor or a cotrustee,  beneficiary or third party. The trustee is not subject to liability if the trustee acts pursuant to the direction,  even if the actions constitute a breach of fiduciary duty,  unless the trustee acts in bad faith or with reckless indifference.
C. The terms of a trust may confer on a trustee or other person a power to direct the modification or termination of the trust.
D. Unless the trust instrument provides otherwise,  a person,  other than a beneficiary,  who holds a power to direct is presumptively a fiduciary who,  as such,  is required to act in good faith with regard to the purposes of the trust and the interests of the beneficiaries. The holder of a power to direct is liable for any loss that results from breach of a fiduciary duty.
2023 Arizona Revised Statutes › Title 14 - Trusts, Estates and Protective Proceedings › § 14-10810 - Record keeping and identification of trust property

14-10810.
Record keeping and identification of trust property
A. A trustee shall keep adequate records of the administration of the trust.
B. A trustee shall keep trust property separate from the trustee's own property.
C. Except as otherwise provided in subsection D,  a trustee shall cause the trust property to be designated so that the interest of the trust,  to the extent feasible,  appears in records maintained by a party other than a trustee or beneficiary.
D. If the trustee maintains records clearly indicating the respective interests,  a trustee may invest as a whole the property of two or more separate trusts.
2023 Arizona Revised Statutes › Title 14 - Trusts, Estates and Protective Proceedings › § 14-10814 - Discretionary powers; tax savings

14-10814.
Discretionary powers;  tax savings
A. Notwithstanding the breadth of discretion granted to a trustee in the terms of the trust,  including the use of terms such as absolute,  sole or uncontrolled,  the trustee shall exercise a discretionary power in good faith as to only beneficiaries of the trust and creditors of the trust and no other persons,  including creditors of the beneficiaries,  except only to the extent that creditors of beneficiaries are expressly entitled to attachment pursuant to section 14-10504,  subsection B and in accordance with the terms and purposes of the trust and the interests of the beneficiaries.
B. Subject to subsection D of this section,  and unless the terms of the trust expressly indicate that a rule in this subsection does not apply:
1. A person other than a settlor who is a beneficiary and trustee of a trust that confers on the trustee a power to make discretionary distributions to or for the trustee's personal benefit may exercise the power only in accordance with an ascertainable standard relating to the trustee's individual health,  education,  support or maintenance within the meaning of section 2041(b)(1)(A) or 2514(c)(1) of the internal revenue code. This paragraph does not expand the power or duty of a trustee to make distributions and does not apply to a power held in an individual capacity.
2. A trustee may not exercise a power to make discretionary distributions to satisfy a legal obligation of support that the trustee personally owes another person.
3. Except in the case of a special needs trust,  a settlor who is a trustee of a trust that confers on the trustee a power to make discretionary distributions to or for a beneficiary may exercise the power only in accordance with an ascertainable standard relating to the beneficiary's health,  education,  support or maintenance within the meaning of section 2041(b)(1)(A) or 2514(c)(1) of the internal revenue code. This paragraph does not expand the power or duty of a trustee to make distributions and does not apply to a power held in an individual capacity.
C. A power whose exercise is limited or prohibited by subsection B of this section may be exercised by a majority of the remaining trustees whose exercise of the power is not so limited or prohibited. If the power of all trustees is so limited or prohibited,  the court may appoint a special fiduciary with authority to exercise the power.
D. Subsection B of this section does not apply to:
1. A power held by the settlor's spouse who is the trustee of a trust for which a marital deduction,  as defined in section 2056(b)(5) or 2523(e) of the internal revenue code,  was previously allowed.
2. Any trust during any period that the trust may be revoked or amended by its settlor.
3. A trust if contributions to the trust qualify for the annual exclusion under section 2503(c) of the internal revenue code.
2023 Arizona Revised Statutes › Title 14 - Trusts, Estates and Protective Proceedings › § 14-10815 - General powers of trustee

14-10815.
General powers of trustee
A. A trustee,  without authorization by the court,  may exercise:
1. Powers conferred by the terms of the trust.
2. Except as limited by the terms of the trust:
(a) All powers over the trust property that an unmarried competent owner has over individually owned property.
(b) Any other powers appropriate to achieve the proper investment,  management and distribution of the trust property.
(c) Any other powers conferred by this chapter.
B. The exercise of a power by a person acting in a fiduciary capacity is subject to the fiduciary duties prescribed by this article.
2023 Arizona Revised Statutes › Title 14 - Trusts, Estates and Protective Proceedings › § 14-10817 - Distribution on termination; release of trustee

14-10817.
Distribution on termination;  release of trustee
A. On termination or partial termination of a trust,  the trustee may send to the beneficiaries a proposal for distribution. The right of any beneficiary to object to the proposed distribution terminates if the beneficiary does not notify the trustee of an objection within thirty days after the proposal was sent but only if the proposal informed the beneficiary of the right to object and of the time allowed for objection.
B. On the occurrence of an event terminating or partially terminating a trust,  the trustee,  within a reasonable time,  shall distribute the trust property to the persons entitled to it subject to the right of the trustee to retain a reasonable reserve for the payment of debts,  expenses and taxes.
C. A release by a beneficiary of a trustee from liability for breach of trust is invalid to the extent:
1. It was induced by improper conduct of the trustee.
2. The beneficiary,  at the time of the release,  did not know of the beneficiary's rights or of the material facts relating to the breach.
2023 Arizona Revised Statutes › Title 14 - Trusts, Estates and Protective Proceedings › § 14-10818 - Trust protector

14-10818.
Trust protector
A. A trust instrument may provide for the appointment of a trust protector. For the purposes of this section,  a person designated in the instrument with a status or title,  other than that of a beneficiary,  with powers similar to those specified in subsection B of this section,  or designated in the instrument as a trust protector,  is a trust protector,  except to the extent otherwise provided in the trust instrument.
B. A trust protector appointed by the trust instrument has the powers,  delegations and functions conferred on the trust protector by the trust instrument. These powers,  delegations and functions may include the following,  which do not limit what powers,  delegations and functions may be granted to the trust protector:
1. Remove and appoint a trustee.
2. Modify or amend the trust instrument for any valid purpose or reason,  including,  without limitation,  to achieve favorable tax status or to respond to changes in the internal revenue code or state law,  or the rulings and regulations under that code or law.
3. Increase,  decrease,  modify or restrict the interests of any beneficiary of the trust.
4. Modify the terms of a power of appointment granted by the trust.
5. Change the applicable law governing the trust.
C. Except to the extent otherwise specifically provided in the trust instrument,  a modification authorized under subsection B of this section may not:
1. Grant a beneficial interest to an individual or a class of individuals unless the individual or class of individuals is specifically provided for under the trust instrument.
2. Modify the beneficial interest of a governmental unit in a special needs trust.
D. Any provision of this title to the contrary,  but except to the extent otherwise provided by the trust instrument,  a trust protector is not a trustee or fiduciary and is not liable or accountable as a trustee or fiduciary because of an act or omission of the trust protector when performing or failing to perform the duties of a trust protector under the trust instrument. This subsection does not apply to trusts that become irrevocable before January 1,  2009 if the trust instrument allows the settlor to remove and replace the trust protector.
E. The exercise of the power pursuant to subsection B of this section is the exercise of a special power of appointment.
2023 Arizona Revised Statutes › Title 14 - Trusts, Estates and Protective Proceedings › § 14-10819 - Trustee's special power to appoint to other trust

14-10819.
Trustee's special power to appoint to other trust
A. Unless the terms of the trust instrument expressly provide otherwise,  a trustee who has the discretion under the terms of a testamentary instrument or irrevocable inter vivos agreement to make distributions,  regardless of whether a standard is provided in the trust instrument to or for the benefit of a beneficiary of the trust,  may exercise without prior court approval the trustee's discretion by appointing part or all of the trust property in favor of a trustee of another trust if the exercise of this discretion:
1. Does not reduce any fixed nondiscretionary income payment to a beneficiary.
2. Does not alter any nondiscretionary annuity or unitrust payment to a beneficiary.
3. Is in favor of the beneficiaries of the trust.
4. Results in any ascertainable standard applicable for distributions from the trust being the same or more restrictive standard applicable for distributions from the recipient trust when the trustee exercising the power to appoint trust property described in this subsection is a possible beneficiary under the standard.
5. Does not adversely affect the tax treatment of the trust,  the trustee,  the settlor or the beneficiaries.
6. Does not violate the limitations on validity under sections 14-2901 and 14-2905.
B. This section applies to a trust governed by the laws of this state,  including a trust whose governing jurisdiction is transferred to this state.
C. The exercise of the trustee's power to appoint trust property under subsection A of this section is considered to be the exercise of a special power of appointment.
D. The trustee,  in the trustee's sole discretion,  before or after the exercise of the trustee's power to appoint trust property under subsection A of this section,  may request the court to approve the exercise.
E. The trustee may exercise the power to appoint all of the trust property pursuant to subsection A of this section by restating the trust instrument.
2023 Arizona Revised Statutes › Title 14 - Trusts, Estates and Protective Proceedings › § 14-10820 - Fiduciaries; service as trustee; limitation

14-10820.
Fiduciaries;  service as trustee;  limitation
A person whose license as a fiduciary has been suspended or revoked pursuant to section 14-5651 may not serve as a trustee in any capacity unless the person is related to the beneficiary by blood,  adoption or marriage. This prohibition does not apply if the person's license has been reinstated and is in good standing.
2023 Arizona Revised Statutes › Title 14 - Trusts, Estates and Protective Proceedings › § 14-10901 - Prudent investor rule

14-10901.
Prudent investor rule
A. Except as provided in subsection B,  a trustee who invests and manages trust assets owes a duty to the beneficiaries of the trust to comply with the prudent investor rule requirements of this article.
B. The prudent investor rule is a default rule and may be expanded,  restricted,  eliminated or otherwise altered by the provisions of a trust.
C. A trustee is not liable to a beneficiary to the extent that the trustee acted in reasonable reliance on the provisions of the trust.
2023 Arizona Revised Statutes › Title 14 - Trusts, Estates and Protective Proceedings › § 14-10902 - Standard of care; portfolio strategy; risk and return objectives

14-10902.
Standard of care;  portfolio strategy;  risk and return objectives
A. A trustee shall invest and manage trust assets as a prudent investor would by considering the purposes,  terms,  distribution requirements and other circumstances of the trust. In satisfying this standard the trustee shall exercise reasonable care,  skill and caution.
B. A trustee's investment and management decisions respecting individual assets shall not be evaluated in isolation but in the context of the trust portfolio as a whole and as a part of an overall investment strategy having risk and return objectives reasonably suited to the trust.
C. Among circumstances that a trustee shall consider in investing and managing trust assets are any of the following that are relevant to the trust or its beneficiaries:
1. General economic conditions.
2. The possible effect of inflation or deflation.
3. The expected tax consequences of investment decisions or strategies.
4. The role that each investment or course of action plays within the overall trust portfolio,  which may include financial assets,  interests in closely held enterprises,  specialty assets,  alternative investments,  tangible and intangible personal property and real property.
5. The expected total return from income and the appreciation of capital.
6. Other resources of the beneficiaries.
7. Needs for liquidity,  regularity of income and preservation or appreciation of capital.
8. An asset's special relationship or special value,  if any,  to the purposes of the trust or to one or more of the beneficiaries.
D. A trustee shall make a reasonable effort to verify facts relevant to the investment and management of trust assets.
E. A trustee may invest in any kind of property or type of investment consistent with the standards of this article.
2023 Arizona Revised Statutes › Title 14 - Trusts, Estates and Protective Proceedings › § 14-10904 - Duties at inception of trusteeship

14-10904.
Duties at inception of trusteeship
Within a reasonable time after accepting a trusteeship or receiving trust assets,  a trustee shall review the trust assets and make and implement decisions concerning the retention and disposition of assets in order to bring the trust portfolio into compliance with the purposes,  terms,  distribution requirements and other circumstances of the trust and with the requirements of this article.
2023 Arizona Revised Statutes › Title 14 - Trusts, Estates and Protective Proceedings › § 14-10906 - Prudent investor rule; language to invoke standard

14-10906.
Prudent investor rule;  language to invoke standard
The following terms or comparable language in the provisions of a trust,  unless otherwise limited or modified,  authorizes any investment or strategy permitted under this article:
1. Investments permissible by law for investment of trust funds.
2. Legal investments.
3. Authorized investments.
4. Using the judgment and care under the circumstances then prevailing that persons of prudence,  discretion and intelligence exercise in the management of their own affairs,  not in regard to speculation but in regard to the permanent disposition of their funds,  considering the probable income as well as the probable safety of their capital.
5. Prudent man rule.
6. Prudent trustee rule.
7. Prudent person rule.
8. Prudent investor rule.
2023 Arizona Revised Statutes › Title 14 - Trusts, Estates and Protective Proceedings › § 14-10907 - Delegation of investment and management functions; duties; limitations

14-10907.
Delegation of investment and management functions;  duties;  limitations
A. A fiduciary may delegate investment and management functions that a prudent investor of comparable skills might delegate under the circumstances.
B. A fiduciary is not responsible for the investment decisions or actions of the investment agent to which the investment functions are delegated if the fiduciary exercises reasonable care,  skill and caution in selecting the investment agent,  in establishing the scope and specific terms of the delegation and in reviewing periodically the investment agent's actions in order to monitor the investment agent's performance and compliance with the scope and specific terms of the delegation.
C. The investment agent must comply with the scope and terms of the delegation and exercise the delegated function with reasonable care,  skill and caution and is liable to the trust if the agent fails to do so. An investment agent who represents that the agent has special investment skills must exercise those skills.
D. An investment agent who accepts the delegation of a fiduciary's function from a fiduciary who is subject to the jurisdiction of a court of this state is deemed to have submitted to the jurisdiction of that court even if the delegation agreement provides for a different jurisdiction or venue.
E. A cofiduciary may delegate investment and management functions to another cofiduciary if the delegating cofiduciary reasonably believes that the other cofiduciary has greater investment skills than the delegating cofiduciary with respect to those functions. The delegating cofiduciary is not responsible for the investment decisions or actions of the other cofiduciary to which the investment function are delegated if the delegating cofiduciary exercises reasonable care,  skill and caution in establishing the scope and specific terms of the delegation and in reviewing periodically the other cofiduciary's actions in order to monitor the cofiduciary's performance and compliance with the scope and specific terms of the delegation.
F. Investment in a mutual fund is not a delegation of investment function and neither the mutual fund nor its advisor is an investment agent.
2023 Arizona Revised Statutes › Title 14 - Trusts, Estates and Protective Proceedings › § 14-10908 - Life insurance on settlor; liability of trustee

14-10908.
Life insurance on settlor;  liability of trustee
A trustee may acquire or retain a contract of life insurance on the life of the settlor or the settlor's spouse,  or both,  without liability for a loss arising from the trustee's failure to:
1. Determine whether the contract is or remains a proper investment.
2. Investigate the financial strength of the life insurance company.
3. Exercise nonforfeiture provisions available under the contract.
4. Diversify the contract.
2023 Arizona Revised Statutes › Title 14 - Trusts, Estates and Protective Proceedings › § 14-10909 - Application to existing trusts

14-10909.
Application to existing trusts
A. This article applies to trusts existing on and created after July 20,  1996.
B. As applied to trusts existing on July 20,  1996,  this article governs only decisions or actions occurring after that date.
2023 Arizona Revised Statutes › Title 14 - Trusts, Estates and Protective Proceedings › § 14-11001 - Remedies for breach of trust

14-11001.
Remedies for breach of trust
A. A violation by a trustee of a duty the trustee owes to a beneficiary is a breach of trust.
B. Except as provided in section 14-7404,  to remedy a breach of trust that has occurred or may occur,  the court may:
1. Compel the trustee to perform the trustee's duties.
2. Enjoin the trustee from committing a breach of trust.
3. Compel the trustee to redress a breach of trust by paying money,  restoring property or other means.
4. Order a trustee to account.
5. Appoint a special fiduciary to take possession of the trust property and administer the trust.
6. Suspend the trustee.
7. Remove the trustee as provided in section 14-10706.
8. Reduce or deny compensation to the trustee.
9. Subject to section 14-10706,  void an act of the trustee,  impose a lien or a constructive trust on trust property or trace trust property wrongfully disposed of and recover the property or its proceeds.
10. Order any other appropriate relief.
2023 Arizona Revised Statutes › Title 14 - Trusts, Estates and Protective Proceedings › § 14-11002 - Damages for breach of trust

14-11002.
Damages for breach of trust
A. Except as provided in section 14-7404,  a trustee who commits a breach of trust is liable to the beneficiaries affected for the greater of either:
1. The amount required to restore the value of the trust property and trust distributions to what they would have been had the breach not occurred.
2. The profit the trustee made by reason of the breach.
B. Except as otherwise provided in this subsection,  if more than one trustee is liable to the beneficiaries for a breach of trust,  a trustee is entitled to contribution from the other trustee or trustees. A trustee is not entitled to contribution if the trustee was substantially more at fault than another trustee or if the trustee committed the breach of trust in bad faith or with reckless indifference to the purposes of the trust or the interests of the beneficiaries. A trustee who received a benefit from the breach of trust is not entitled to contribution from another trustee to the extent of the benefit received.
2023 Arizona Revised Statutes › Title 14 - Trusts, Estates and Protective Proceedings › § 14-11003 - Damages in absence of breach

14-11003.
Damages in absence of breach
A. Except as provided in section 14-7404,  a trustee is accountable to an affected beneficiary for any profit made by the trustee arising from the administration of the trust,  even absent a breach of trust. For the purposes of this subsection,  profit does not include:
1. Reasonable compensation to which the trustee is entitled pursuant to section 14-10708.
2. Compensation or fees permitted pursuant to section 14-10802.
3. Reasonable fees or compensation for services rendered that the trustee or an affiliate customarily provides in the normal course of business and that are typical in the geographic area where the trust is administered.
4. Reasonable remuneration for services permitted pursuant to section 6-246.
B. Absent a breach of trust,  a trustee is not liable to a beneficiary for a loss or depreciation in the value of trust property or for not having made a profit.
2023 Arizona Revised Statutes › Title 14 - Trusts, Estates and Protective Proceedings › § 14-11004 - Attorney fees and costs

14-11004.
Attorney fees and costs
A. A trustee or a person who is nominated as a trustee is entitled to reimbursement from the trust for that person's reasonable fees,  expenses and disbursement,  including attorney fees and costs,  that arise out of and that relate to the good faith defense or prosecution of a judicial or alternative dispute resolution proceeding involving the administration of the trust,  regardless of whether the defense or prosecution is successful.
B. A court or arbitrator may order that a party's reasonable fees,  expenses and disbursements pursuant to subsection A be paid by any other party or the trust that is the subject of the judicial proceeding.
2023 Arizona Revised Statutes › Title 14 - Trusts, Estates and Protective Proceedings › § 14-11005 - Limitation of action against trustee

14-11005.
Limitation of action against trustee
A. A beneficiary may not commence a proceeding against a trustee for breach of trust more than one year after the date the beneficiary or a representative of the beneficiary was sent a report that adequately disclosed the existence of a potential claim for breach of trust and informed the beneficiary of the time allowed for commencing a proceeding.
B. A report adequately discloses the existence of a potential claim for breach of trust if it provides sufficient information so that the beneficiary or representative knows of the potential claim or should have inquired into its existence.
C. If subsection A does not apply,  a judicial proceeding by a beneficiary against a trustee for breach of trust must be commenced within two years after the first to occur of:
1. The removal,  resignation or death of the trustee.
2. The termination of the beneficiary's interest in the trust.
3. The termination of the trust.
2023 Arizona Revised Statutes › Title 14 - Trusts, Estates and Protective Proceedings › § 14-11007 - Event affecting administration or distribution

14-11007.
Event affecting administration or distribution
If the happening of an event,  including marriage,  divorce,  performance of educational requirements or death,  affects the administration or distribution of a trust,  a trustee who has exercised reasonable care to ascertain the happening of the event is not liable for a loss resulting from the trustee's lack of knowledge.
2023 Arizona Revised Statutes › Title 14 - Trusts, Estates and Protective Proceedings › § 14-11008 - Exculpation of trustee

14-11008.
Exculpation of trustee
A. A term of a trust relieving a trustee of liability for breach of trust is unenforceable to the extent that it either:
1. Relieves the trustee of liability for breach of trust committed in bad faith or with reckless indifference to the purposes of the trust or the interests of the beneficiaries.
2. Was inserted as the result of an abuse by the trustee of a fiduciary or confidential relationship to the settlor.
B. An exculpatory term drafted or caused to be drafted by the trustee is invalid as an abuse of a fiduciary or confidential relationship unless the trustee proves that the exculpatory term is fair under the circumstances and that its existence and contents were adequately communicated to the settlor.
C. Subsection B does not apply to an irrevocable trust created before January 1,  2009 or to a revocable trust created before January 1,  2009 that is not amended on or after January 1,  2009.
2023 Arizona Revised Statutes › Title 14 - Trusts, Estates and Protective Proceedings › § 14-11009 - Beneficiary's consent, release or ratification

14-11009.
Beneficiary's consent,  release or ratification
A trustee is not liable to a beneficiary for breach of trust if the beneficiary consented to the conduct constituting the breach,  released the trustee from liability for the breach or ratified the transaction constituting the breach,  unless either:
1. The consent,  release or ratification of the beneficiary was induced by improper conduct of the trustee.
2. At the time of the consent,  release or ratification,  the beneficiary did not know of the beneficiary's rights or of the material facts relating to the breach.
2023 Arizona Revised Statutes › Title 14 - Trusts, Estates and Protective Proceedings › § 14-11010 - Limitation on personal liability of trustee

14-11010.
Limitation on personal liability of trustee
A. Except as otherwise provided in the contract,  a trustee is not personally liable on a contract properly entered into in the trustee's fiduciary capacity in the course of administering the trust if the trustee in the contract disclosed the fiduciary capacity.
B. A trustee is personally liable for torts committed in the course of administering a trust or for obligations arising from ownership or control of trust property,  including liability for violation of environmental law,  only if the trustee is personally at fault.
C. A claim based on a contract entered into by a trustee in the trustee's fiduciary capacity,  on an obligation arising from ownership or control of trust property or on a tort committed in the course of administering a trust may be asserted in a judicial proceeding against the trustee in the trustee's fiduciary capacity,  whether or not the trustee is personally liable for the claim.
2023 Arizona Revised Statutes › Title 14 - Trusts, Estates and Protective Proceedings › § 14-11011 - Interest as general partner

14-11011.
Interest as general partner
A. Except to the extent that personal liability is imposed in the contract,  a trustee who holds an interest as a general partner in a general or limited partnership is not personally liable on a contract entered into by the partnership after the trust's acquisition of the interest if the fiduciary capacity was disclosed in the contract or in a statement previously filed pursuant to the uniform partnership act or the uniform limited partnership act.
B. A trustee who holds an interest as a general partner is not personally liable for torts committed by the partnership or for obligations arising from ownership or control of the interest unless the trustee is personally at fault.
2023 Arizona Revised Statutes › Title 14 - Trusts, Estates and Protective Proceedings › § 14-11012 - Protection of person dealing with trustee

14-11012.
Protection of person dealing with trustee
A. A person other than a beneficiary who in good faith assists a trustee or who in good faith and for value deals with a trustee,  without knowledge that the trustee is exceeding or improperly exercising the trustee's powers,  is protected from liability as if the trustee properly exercised the power.
B. A person other than a beneficiary who in good faith deals with a trustee is not required to inquire into the extent of the trustee's powers or the propriety of their exercise.
C. A person who in good faith delivers assets to a trustee need not ensure their proper application.
D. A person other than a beneficiary who in good faith assists a former trustee or who in good faith and for value deals with a former trustee,  without knowledge that the trusteeship has terminated,  is protected from liability as if the former trustee were still a trustee.
E. Comparable protective provisions of other laws relating to commercial transactions or transfer of securities by fiduciaries prevail over the protection provided by this section.
2023 Arizona Revised Statutes › Title 14 - Trusts, Estates and Protective Proceedings › § 14-11015 - Express total return unitrusts; definition

14-11015.
Express total return unitrusts;  definition
A. A unitrust amount may be determined by reference to the net fair market value of the trust's assets in one year or more than one year.
B. Distribution of a fixed percentage unitrust amount is considered a distribution of all of the income of the total return unitrust and is not a fundamental departure from applicable state law,  regardless of whether the total return unitrust is created and governed pursuant to section 14-11014 or by the terms of the governing instrument.
C. An express total return unitrust may provide a mechanism for changing the unitrust percentage similar to the mechanism provided under section 14-11014 based on the factors prescribed in that section and may provide for a change from a unitrust to an income trust similar to the mechanism prescribed pursuant to section 14-11014.
D. If an express total return unitrust does not specifically or by reference to section 14-11014 grant a power to change the unitrust percentage or change to an income trust,  the trustee shall have no such power.
E. A distribution of the fixed percentage of not less than three per cent nor more than five per cent reasonably apportions the total return of a total return unitrust.
F. An express total return unitrust that provides for a fixed percentage payout in excess of five per cent per year is considered to have paid out all of the income of the total return unitrust and to have paid out principal of the trust to the extent that the fixed percentage payout exceeds five per cent per year.
G. The trust document may grant discretion to the trustee to adopt a consistent practice of treating capital gains as part of the unitrust distribution,  to the extent that the unitrust distribution exceeds the net accounting income,  or it may specify the ordering of these classes of income.
H. Unless the terms of the trust specifically provide otherwise,  a distribution of the unitrust amount is considered to have been made from the following sources in order of priority:
1. From net accounting income determined as if the trust were not a unitrust.
2. From ordinary income not allocable to net accounting income.
3. From net realized short-term capital gains.
4. From net realized long-term capital gains.
5. From the principal of the trust estate.
I. The trust document may provide that assets used by the trust beneficiary,  such as a residence property or tangible personal property,  may be excluded from the net fair market value for computing the unitrust amount. This use may be considered equivalent to the income or unitrust amount.
J. For the purposes of this section,  " express total return unitrust"  means a trust that by its governing instrument requires the distribution at least annually of a unitrust amount equal to a fixed percentage of not less than three nor more than five per cent per year of the net fair market value of the trust's assets,  valued at least annually.
2023 Arizona Revised Statutes › Title 14 - Trusts, Estates and Protective Proceedings › § 14-11101 - Electronic records and signatures

14-11101.
Electronic records and signatures
The provisions of this chapter governing the legal effect,  validity or enforceability of electronic records or electronic signatures,  and of contracts formed or performed with the use of such records or signatures,  conform to the requirements of section 102 of the electronic signatures in global and national commerce act (15 United States Code section 7002) and supersede,  modify and limit the requirements of that act.
2023 Arizona Revised Statutes › Title 14 - Trusts, Estates and Protective Proceedings › § 14-11102 - Severability clause

14-11102.
Severability clause
If any provision of this chapter or its application to any person or circumstances is held invalid,  the invalidity does not affect other provisions or applications of this chapter that can be given effect without the invalid provision or application,  and to this end the provisions of this chapter are severable.
2023 Arizona Revised Statutes › Title 14 - Trusts, Estates and Protective Proceedings › § 14-12102 - Definitions

14-12102.
Definitions
In this chapter,  unless the context otherwise requires:
1. " Adult"  means an individual who is at least eighteen years of age.
2. " Conservator"  means a person appointed by the court to manage the estate of an adult protected person,  including a person appointed under chapter 5 of this title.
3. " Court of this state"  or " court in this state"  means the superior court.
4. " Guardian"  means a person who has qualified as a guardian of an incapacitated person pursuant to testamentary or court appointment and includes a person who is appointed under chapter 5,  article 3 of this title. Guardian does not include a guardian ad litem who is appointed pursuant to section 14-1408 or a representative who is appointed pursuant to section 14-10302.
5. " Guardianship order"  means an order appointing a guardian.
6. " Guardianship proceeding"  means a judicial proceeding in which an order for the appointment of a guardian is sought or has been issued.
7. " Incapacitated person"  means an adult for whom a guardian has been appointed.
8. " Person" ,  except in the term incapacitated person or protected person,  means an individual,  corporation,  business trust,  estate,  trust,  partnership,  limited liability company,  association,  joint venture,  public corporation,  government or governmental subdivision,  agency or instrumentality or any other legal or commercial entity.
9. " Protected person"  means an adult for whom a protective order has been issued.
10. " Protective order"  means an order appointing a conservator or other order related to management of an adult's property.
11. " Protective proceeding"  means a judicial proceeding in which a protective order is sought or has been issued.
12. " Record"  means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form.
13. " Respondent"  means an adult for whom a protective order or the appointment of a guardian is sought.
14. " State"  means a state of the United States,  the District of Columbia,  Puerto Rico,  the United States Virgin Islands,  a federally recognized Indian tribe or any territory or insular possession subject to the jurisdiction of the United States.
2023 Arizona Revised Statutes › Title 14 - Trusts, Estates and Protective Proceedings › § 14-12104 - Communication between courts

14-12104.
Communication between courts
A. A court of this state may communicate with a court in another state concerning a proceeding arising under this chapter. The court may allow the parties to participate in the communication. Except as provided in subsection B,  the court shall make a record of the communication. The record may be limited to the fact that the communication occurred.
B. Courts may communicate concerning schedules,  calendars,  court records and other administrative matters without making a record.
2023 Arizona Revised Statutes › Title 14 - Trusts, Estates and Protective Proceedings › § 14-12105 - Cooperation between courts

14-12105.
Cooperation between courts
A. In a guardianship or protective proceeding in this state,  a court of this state may request the appropriate court of another state to do any of the following:
1. Hold an evidentiary hearing.
2. Order a person in that state to produce evidence or give testimony pursuant to procedures of that state.
3. Order that an evaluation or assessment be made of the respondent.
4. Order any appropriate investigation of a person involved in a proceeding.
5. Forward to the court of this state a certified copy of the transcript or other record of a hearing under paragraph 1 or any other proceeding,  any evidence otherwise produced under paragraph 2,  and any evaluation or assessment prepared in compliance with an order under paragraph 3 or 4.
6. Issue any order necessary to ensure the appearance in the proceeding of a person whose presence is necessary for the court to make a determination,  including the respondent or the incapacitated or protected person.
7. Issue an order authorizing the release of medical,  financial,  criminal or other relevant information in that state,  including protected health information as defined in 45 Code of Federal Regulations section 164.504,  as amended.
B. If a court of another state in which a guardianship or protective proceeding is pending requests assistance of the kind provided in subsection A,  a court of this state has jurisdiction for the limited purpose of granting the request or making reasonable efforts to comply with the request.
2023 Arizona Revised Statutes › Title 14 - Trusts, Estates and Protective Proceedings › § 14-12106 - Taking testimony in another state

14-12106.
Taking testimony in another state
A. In a guardianship or protective proceeding,  in addition to other procedures that may be available,  testimony of a witness who is located in another state may be offered by deposition or other means allowable in this state for testimony taken in another state. The court on its own motion may order that the testimony of a witness be taken in another state and may prescribe the manner in which and the terms on which the testimony is to be taken.
B. In a guardianship or protective proceeding,  a court in this state may permit a witness located in another state to be deposed or to testify by telephone or audiovisual or other electronic means. A court of this state shall cooperate with the court of the other state in designating an appropriate location for the deposition or testimony.
C. Documentary evidence transmitted from another state to a court of this state by technological means that do not produce an original writing may not be excluded from evidence on an objection based on the best evidence rule.
2023 Arizona Revised Statutes › Title 14 - Trusts, Estates and Protective Proceedings › § 14-12201 - Definitions; significant connection factors

14-12201.
Definitions;  significant connection factors
A. In this article,  unless the context otherwise requires:
1. " Emergency"  means a circumstance that likely will result in substantial harm to a respondent's health,  safety or welfare,  and for which the appointment of a guardian is necessary because no other person has authority and is willing to act on the respondent's behalf.
2. " Home state"  means the state in which the respondent was physically present,  including any period of temporary absence,  for at least six consecutive months immediately before the filing of a petition for a protective order or the appointment of a guardian or,  if none,  the state in which the respondent was physically present,  including any period of temporary absence,  for at least six consecutive months ending within the six months before the filing of the petition.
3. " Significant-connection state"  means a state,  other than the home state,  with which a respondent has a significant connection other than mere physical presence and in which substantial evidence concerning the respondent is available.
B. In determining under section 14-12203 and section 14-12301,  subsection E whether a respondent has a significant connection with a particular state,  the court shall consider:
1. The location of the respondent's family and other persons required to be notified of the guardianship or protective proceeding.
2. The length of time the respondent at any time was physically present in the state and the duration of any absence.
3. The location of the respondent's property.
4. The extent to which the respondent has ties to the state such as voter registration,  state or local tax return filing,  vehicle registration,  driver license,  social relationship and receipt of services.
2023 Arizona Revised Statutes › Title 14 - Trusts, Estates and Protective Proceedings › § 14-12203 - Jurisdiction

14-12203.
Jurisdiction
A court of this state has jurisdiction to appoint a guardian or issue a protective order for a respondent if any of the following is true:
1. This state is the respondent's home state.
2. On the date the petition is filed,  this state is a significant-connection state and either:
(a) The respondent does not have a home state or a court of the respondent's home state has declined to exercise jurisdiction because this state is a more appropriate forum.
(b) The respondent has a home state,  a petition for an appointment or order is not pending in a court of that state or another significant-connection state and,  before the court makes the appointment or issues the order:
(i) A petition for an appointment or order is not filed in the respondent's home state.
(ii) An objection to the court's jurisdiction is not filed by a person required to be notified of the proceeding.
(iii) The court in this state concludes that it is an appropriate forum under the factors set forth in section 14-12206,  subsection C.
3. This state does not have jurisdiction under either paragraph 1 or 2 of this section,  the respondent's home state and all significant-connection states have declined to exercise jurisdiction because this state is the more appropriate forum and jurisdiction in this state is consistent with the constitutions of this state and the United States.
4. The requirements for special jurisdiction under section 14-12204 are met.
2023 Arizona Revised Statutes › Title 14 - Trusts, Estates and Protective Proceedings › § 14-12204 - Special jurisdiction

14-12204.
Special jurisdiction
A. A court of this state lacking jurisdiction under section 14-12203 has special jurisdiction to do any of the following:
1. Appoint a guardian in an emergency for a term not exceeding ninety days for a respondent who is physically present in this state.
2. Issue a protective order with respect to real or tangible personal property located in this state.
3. Appoint a guardian or conservator for an incapacitated or protected person for whom a provisional order to transfer the proceeding from another state has been issued under procedures similar to section 14-12301.
B. If a petition for the appointment of a guardian in an emergency is brought in this state and this state was not the respondent's home state on the date the petition was filed,  the court shall dismiss the proceeding at the request of the court of the home state,  if any,  whether dismissal is requested before or after the emergency appointment.
2023 Arizona Revised Statutes › Title 14 - Trusts, Estates and Protective Proceedings › § 14-12205 - Exclusive and continuing jurisdiction

14-12205.
Exclusive and continuing jurisdiction
Except as otherwise provided in section 14-12204,  a court that has appointed a guardian or issued a protective order consistent with this chapter has exclusive and continuing jurisdiction over the proceeding until it is terminated by the court or the appointment or order expires by its own terms.