14-7431 - Arizona Statutes

14-7431. Proposed actions; notification; definition A. A trustee may, but is not required to, give notice of a proposed action regarding a matter governed by this article as provided in this section. B. The trustee shall mail notice of a proposed action, by certified, registered or ordinary first class mail, to all beneficiaries who are receiving, or are entitled to receive, income from the trust or to receive a distribution of principal if the trust were terminated at the time the notice is given. The trustee must give notice to any beneficiary under any incapacity pursuant to section 14-1403. C. The trustee is not required to give notice of a proposed action to any person who consents in writing to the proposed action. A person may give consent at any time before or after the proposed action is taken. D. The notice of the proposed action shall state that it is given pursuant to this article and shall contain all of the following: 1. The name and mailing address of the trustee. 2. The name and telephone number of a person who may be contacted for additional information. 3. A description of the action proposed to be taken and an explanation of the reasons for the action. 4. The time within which objections to the proposed action can be made, which shall be at least thirty days after the mailing of the notice. 5. The date on or after which the proposed action may be taken or is effective. E. A beneficiary may object to the proposed action by mailing a written objection to the trustee at the address stated in the notice of proposed action within the time period specified in the notice of proposed action. F. A trustee is not liable to a beneficiary for an action regarding a matter governed by this article if the trustee does not receive a written objection to the proposed action from the beneficiary within the applicable time period and the other requirements of this article are satisfied. If a beneficiary entitled to notice does not object under this section, the trustee is not liable to any current or future beneficiary with respect to the proposed action. G. If the trustee receives a written objection within the applicable time period, either the trustee or a beneficiary may petition the court to have the proposed action taken as proposed, taken with modifications or not taken at all. An objecting beneficiary has the burden of proving that the trustee's proposed action should not be taken. A beneficiary who has not objected may oppose the proposed action in such a proceeding. If the trustee decides not to implement the proposed action, the trustee shall notify the beneficiaries of the decision not to take the action and the reasons for the decision. The trustee's decision not to implement the proposed action does not give rise to liability to any current or future beneficiary. In such circumstances, a beneficiary may petition the court to have the action taken and has the burden of proving that it should be taken. H. For the purposes of this section, "proposed action" includes a course of action or a decision not to take a course of action.