§ 13.5.1 TRUSTEES CAN RECOVER ATTORNEYS' FEES

• Jurisdiction: Arizona

§ 13.5.1 Trustees Can Recover Attorneys' Fees

Prior to the enactment of the Arizona Trust Code, which became effective January 1, 2009, there was no Arizona statute that expressly allowed a trustee to recover its attorneys' fees from the trust, although such recovery was generally allowed by common law. Now, however, there is specific statutory authority for a trustee to recover attorneys' fees expended in a dispute. The new statute also expands who may be ordered to pay such fees to include "any other party" to the dispute, as well as the trust. The new statute reads:

A. A trustee or a person who is nominated as a trustee is entitled to reimbursement from the trust for that person's reasonable fees, expenses and disbursement, including attorney fees and costs, that arise out of and that relate to the good faith defense or prosecution of a judicial or alternative dispute resolution proceeding involving the administration of the trust, regardless of whether the...