Arizona adopted the Uniform Trust Code, so standard UTC rules apply as your baseline. What makes Arizona distinctive is the combination of community property rules, a 500-plus-year trust duration, and its position as one of the most popular destinations for retirees moving from California. If you're moving to Arizona with a California trust, the compliance differences are significant, and your trust almost certainly needs a review.
This guide applies to both revocable and irrevocable trusts in Arizona.
Where Arizona trust law lives
The Arizona Trust Code is in Arizona Revised Statutes sections 14-10101 through 14-11102. Arizona is also a community property state, governed by A.R.S. Title 25 for marital property matters.
Accounting and notice requirements
Arizona follows the standard UTC framework. Trustees must notify qualified beneficiaries within 60 days of accepting trusteeship and when the trust becomes irrevocable. Annual accounting to qualified beneficiaries is required under the UTC duty to inform.
Trustee duties
Arizona follows the standard UTC duties: good faith administration, loyalty, impartiality, and prudent investing. Diversification is required under the prudent investor framework unless the trustee reasonably determines the trust is better served otherwise.
Trustee compensation
Arizona uses the "reasonable under the circumstances" standard. No statutory fee schedule. Professional trustees typically charge 0.5% to 1.5% of trust assets annually.
What makes Arizona different
Community property state. Arizona is one of nine community property states. Property acquired during marriage is presumed to belong to both spouses equally, regardless of whose name is on the title. This has major implications for trust funding. When a married couple puts community property into a trust, the characterization needs to be preserved correctly to maintain the double stepped-up basis benefit when one spouse dies. Mischaracterizing community property as separate property in the trust can cost the surviving spouse significant capital gains taxes.
500-plus-year trust duration. Under A.R.S. section 14-2901, Arizona allows trusts to last over 500 years. This is less aggressive than Nevada's 365 years (which is effectively perpetual given the economic reality), Ohio's unlimited duration, or New Jersey's 1,000 years, but it's far longer than the traditional lives-in-being-plus-21-years rule that states like New York still follow.
Major destination for California retirees. The California-to-Arizona move is one of the most common trust migration patterns in the country. The differences are significant: California is non-UTC with mandatory annual accounting, a 120-day contest window, and 13.3% top income tax. Arizona is UTC-based with standard accounting, no specific contest window framework, and no state income tax on trusts for nonresidents. If you moved from California, your trust needs a review to ensure it's compliant under Arizona law and optimized for the change.
If your trust designates California law as governing, California rules may still apply even after you move to Arizona. Moving your physical residence doesn't automatically change which state's law controls your trust. You may need to formally amend the trust to change the governing law and situs.
No state estate tax. Arizona has no state estate tax, which is one of the financial incentives for the California-to-Arizona migration pattern.
TrustHelm tip: TrustHelm identifies whether your trust was created under another state's law and flags when a review is needed after a move. For Arizona trusts, the platform tracks your community property assets separately and ensures correct characterization in the trust.
The most common Arizona trust mistakes
Not updating a California trust after moving to Arizona. The most common mistake for new Arizona residents. Your California trust may still be governed by California law, with California's stricter notice, accounting, and tax requirements.
Mischaracterizing community property. When funding a trust with community property, the assets must be properly characterized to preserve the double stepped-up basis. Getting this wrong can result in significant capital gains taxes for the surviving spouse.
Not funding the trust. The universal mistake. Any assets not titled in the trust go through probate.
Assuming the trust automatically follows you. Moving to Arizona doesn't automatically change your trust's governing law. A formal amendment or situs transfer may be required.
Missing the 60-day notice deadline. Standard UTC requirement that applies when a new trustee takes over or the trust becomes irrevocable.
When to talk to an attorney
You should consult an Arizona trust attorney if you recently moved from California (or any other state) and need your trust reviewed, you need to ensure community property is correctly characterized in your trust, you want to explore the 500-year dynasty trust option, or you're a successor trustee taking over after a death.
For finding a qualified estate planning attorney in your area, visit TrustHelm's Find an Attorney directory.
This guide is for educational purposes only and does not constitute legal advice. Consult a qualified attorney for decisions about your trust.