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Arizona's Uniform Declaratory Judgments Act (ARS 12-1834) provides heirs, devisees, trust beneficiaries, and other interested parties a route to redress poor or improper management or communication on the part of a trustee or personal representative (executor).
Under the Act, any person interested in the administration of a trust or estate, including an heir or devisee, may file for a declaration of certain rights. These rights include directing the trustee or personal representative to do or abstain from doing a particular act in their fiduciary capacity. They may also ask the court to determine any question arising in the administration of the trust or estate, including the construction of wills and other written documents.
Trustees and personal representatives may avoid being sued under this Act by closely adhering to Arizona law and maintaining clear communication with heirs, devisees, and trust beneficiaries. On the flip side, heirs, devisees, and beneficiaries may use this statute to protect and enforce their interests in the estate. Specific recommendations relating to this act are:
Conformance with Arizona Statutes
Arizona statutes require specific notifications from trustees and personal representatives regarding a change of any significance in the administration of the estate. This may include a change in personal representative or trust administrator, compensation issues, and the addition or removal of heirs, devisees, and beneficiaries. Arizona also requires notification of any current or potential heir, devisee, or beneficiary, requiring the personal representative or trustee to identify any party that may reasonably become an heir, devisee, or beneficiary of the estate.
Compliance with Fiduciary Responsibilities
Trustees and personal representatives should make themselves completely familiar with their obligations, including the stated responsibilities of the trust agreement, will, or other estate documents. Clear and regular accounting reports are an essential responsibility in most trust agreements and under Arizona probate law. Strict compliance by the fiduciary with his or her responsibilities will help to avoid legal action under the Uniform Declaratory Judgments Act. Failure to follow one's legal responsibilities may be viewed as "self dealing" and can expose a fiduciary to a lawsuit.
Clear and Frequent Communication
One of the most frequent complaints about estate administrators is poor communication. The Arizona statutory requirements should be treated as a minimum threshold for a trustee's or personal representative's obligations to communicate with the heirs, devisees, and beneficiaries about any event, threat, modification or other occurrence that will affect the estate. Frequent communication is more beneficial to the fiduciary than the perception that he or she is attempting to conceal relevant information from the heirs, devisees, or beneficiaries.
Outside Legal or Accounting Advice
When applicable, a trustee or personal representative should seek legal and/or accounting advice on issues outside his or her knowledge, including information on how other estates are responding to economic, political or regulatory issues. Seeking outside legal or accounting advice on particular issues may also provide useful support documentation in the event of a lawsuit by an heir, devisee, beneficiary, or other interested person under the Uniform Declaratory Judgments Act. On the other hand, heirs, devisees, and beneficiaries should also seek legal advice about their rights under the Act or other laws when they believe the estate administrator is not meeting his or her fiduciary responsibilities.