Arizona Court of Appeals, Division One, holds that statute allowing a decedent’s estate to recover attorneys’ fees does not authorize recovery for trust beneficiaries.

A mother and father created a trust for the benefit of their four children—each child was entitled to a 25% share upon the death of their parents.

By 2019, both parents had died. One of the children began serving as successor trustee. Over the following years, disputes arose regarding the trustee’s administration of the trust, the management of its assets, and the distribution of its property.

Ultimately, two of the children sued the trustee. However, the children ultimately moved to dismiss their claims. The trial court granted the motion, and both the trustee and the children filed competing claims for attorneys’ fees. The court awarded the children attorneys’ fees under A.R.S. § 14-1105(A), which authorizes the recovery of fees where “the court finds that a decedent’s estate or trust has incurred professional fees or expenses as a result of unreasonable conduct.” The trustee moved for a new trial or to alter or amend the attorneys’ fees judgment. The trial court denied the motion, and the trustee timely appealed.

On appeal, the Arizona Court of Appeals reversed. The Court held that, although the children had given proper notice that they would seek attorneys’ fees, they ultimately failed to cite authority that allowed them to do so. The children had sought fees under A.R.S. § 14-1105(A), but the plain language of that statute limited recovery to a decedent’s estate; it did not authorize recovery for a beneficiary of that trust. Because § 14-1105(A) was the basis on which the trial court awarded fees, the Court vacated the award of fees to the children.

Judge Becke authored the opinion, joined by Judges Gass and Brown.

Posted by: Joshua J. Messer