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Arizona Revised Statutes Title 14. Trusts, Estates and Protective Proceedings § 14-10818. Trust protector

Current as of January 01, 2025 | Updated by Findlaw Staff

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  1 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.

1 Internal Revenue Code sections may be found in Title 26 of U.S.C.A
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Cite this article: FindLaw.com - Arizona Revised Statutes Title 14. Trusts, Estates and Protective Proceedings § 14-10818. Trust protector - last updated January 01, 2025 | https://codes.findlaw.com/az/title-14-trusts-estates-and-protective-proceedings/az-rev-st-sect-14-10818/

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