Bill Text: AZ HB2512 | 2013 | Fifty-first Legislature 1st Regular | Engrossed
Bill Title: Trusts; beneficiary suits against settlor
Spectrum: Partisan Bill (Republican 1-0)
Status: (Vetoed) 2013-04-16 - Governor Vetoed [HB2512 Detail]
Download: Arizona-2013-HB2512-Engrossed.html
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Senate Engrossed House Bill |
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State of Arizona House of Representatives Fifty-first Legislature First Regular Session 2013
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HOUSE BILL 2512 |
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AN ACT
amending title 14, chapter 11, article 2, Arizona Revised Statutes, by adding section 14-10206; relating to the trust code.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 14, chapter 11, article 2, Arizona Revised Statutes, is amended by adding section 14-10206, to read:
14-10206. Beneficiary suits against family grantor, trustee or agent; damages by beneficiary; alternative dispute resolution; definitions
A. A beneficiary may not claim damages from a gift of property that is made through a governing instrument by a grantor who is a member of the beneficiary's family.
B. Property that is obtained by a beneficiary through a governing instrument from a grantor who is a member of the beneficiary's family is presumed to be a gift. This presumption may be rebutted by clear and convincing evidence.
C. A beneficiary's claim arising from a governing instrument against a grantor who is a member of the beneficiary's family is limited to the value of property, if any, the beneficiary contributed to the governing instrument.
D. Unless it is found by clear and convincing evidence to be contrary to the grantor's intent, a beneficiary who violates subsection a of this section:
1. Is deemed to have predeceased the grantor for the purposes of all governing instruments between the grantor and beneficiary.
2. Shall pay all damages caused by the civil action, including reasonable attorney fees and costs.
E. This section applies to a civil action brought by a beneficiary against the grantor's trustee or agent who is acting in good faith to carry out the instructions of the grantor.
F. A dispute concerning a governing instrument in which the grantor is a member of the beneficiary's family may be resolved at any time by mandatory alternative dispute resolution procedures that are consistent with the grantor's intent without the consent of the beneficiary.
G. For the purposes of this section:
1. "Governing instrument" means a deed, a will, a trust, a custodianship, an insurance or annuity policy, an account with pay on death designation, a security registered in beneficiary form, a pension, a profit sharing, retirement or similar benefit plan, a family limited partnership, an instrument creating or exercising a power of appointment, a power of attorney, an estate planning document or a dispositive, appointive or nominative instrument of any similar type.
2. "Grantor" means an individual who transfers property to a beneficiary through a governing instrument.
Sec. 2. Applicability
Section 14-10206, Arizona Revised Statutes, as added by this act, applies to any governing instrument regardless of whether it was executed before or after the effective date of this act.
