Ariz. Rev. Stat. § 14-10802 – Duty of loyalty

A. A trustee shall administer the trust solely in the interests of the beneficiaries.
B. Subject to the rights of persons dealing with or assisting the trustee as provided in section 14-11012, a sale, encumbrance or other transaction involving the investment or management of trust property entered into by the trustee for the trustee's own personal account or that is otherwise affected by a conflict between the trustee's fiduciary and personal interests is voidable by a beneficiary affected by the transaction unless either:
1. 1. The transaction was authorized by the terms of the trust.
2. 2. The transaction was approved by the court.
3. 3. The beneficiary did not commence a judicial proceeding within the time allowed by section 14-11005.
4. 4. The beneficiary consented to the trustee's conduct, ratified the transaction or released the trustee in compliance with section 14-11009.
5. 5. The transaction involves a contract entered into or claim acquired by the trustee before the person became or contemplated becoming trustee.
C. A sale, encumbrance or other transaction involving the investment or management of trust property is presumed to be affected by a conflict between personal and fiduciary interests if it is entered into by the trustee with:
1. 1. The trustee's spouse.
2. 2. The trustee's descendants, siblings or parents or their spouses.
3. 3. An agent or attorney of the trustee.
4. 4. A corporation or other person or enterprise in which the trustee, or a person that owns a significant interest in the trustee, has an interest that might affect the trustee's best judgment.
D. A transaction between a trustee and a beneficiary that does not concern trust property but that occurs during the existence of the trust or while the trustee retains significant influence over the beneficiary and from which the trustee obtains an advantage is voidable by the beneficiary unless the trustee establishes that the transaction was fair to the beneficiary.
E. A transaction not concerning trust property in which the trustee engages in the trustee's individual capacity involves a conflict between personal and fiduciary interests if the transaction concerns an opportunity properly belonging to the trust.
F. An investment by a trustee in securities of an investment company or investment trust to which the trustee, or its affiliate, provides services in a capacity other than as trustee is not presumed to be affected by a conflict between personal and fiduciary interests if the investment otherwise complies with the prudent investor rule of article 9 of this chapter. The trustee may be compensated by the investment company or investment trust for providing those services out of fees charged to the trust if the trustee at least annually notifies the persons entitled under section 14-10813 to receive a copy of the trustee's annual report that the bank or trust company provides services for and receives fees from the investment company or investment trust. This notification may be made in the trustee's statements of the fiduciary account.
G. In voting shares of stock or in exercising powers of control over similar interests in other forms of enterprise, the trustee shall act in the best interests of the beneficiaries. If the trust is the sole owner of a corporation or other form of enterprise, the trustee shall elect or appoint directors or other managers who will manage the corporation or enterprise in the best interests of the beneficiaries.
H. This section does not preclude the following transactions, if fair to the beneficiaries:
1. 1. An agreement between a trustee and a beneficiary relating to the appointment or compensation of the trustee.
2. 2. Payment of reasonable compensation to the trustee.
3. 3. A transaction between a trust and another trust, decedent's estate or conservatorship of which the trustee is a fiduciary or in which a beneficiary has an interest.
4. 4. A deposit of trust money in a regulated financial service institution operated by the trustee.
5. 5. An advance by the trustee of money for the protection of the trust.
I. The court may appoint a special fiduciary to make a decision with respect to any proposed transaction that may violate this section if entered into by the trustee.