Disclaimer: This article is for educational purposes only and does not constitute legal advice.
Detailed Answer
In Arizona probate, the personal representative must follow specific steps to ensure estate expenses and creditor claims are addressed before distributing assets to heirs. These procedures protect the estate from unexpected liabilities and ensure fair treatment of creditors and beneficiaries.
1. Appointment of a Personal Representative
After filing the will (if any) with the superior court, the court appoints a personal representative under Arizona Revised Statutes (A.R.S.) § 14-3102. The personal representative has the legal authority to manage estate affairs, including settling debts and taxes.
2. Inventory and Appraisal
The personal representative must inventory estate assets and file an appraisal within 60 days of appointment (A.R.S. § 14-3104). This process establishes the estate’s value, which is essential for paying claims.
3. Notice to Creditors
Within 30 days of appointment, the personal representative must publish a notice to creditors in a newspaper in the county of probate and mail notice to known creditors (A.R.S. § 14-3808). The notice sets a deadline—typically four months from publication—for filing claims.
See A.R.S. § 14-3808: https://www.azleg.gov/ars/14/03808.htm.
4. Review and Allowance of Claims
Creditors must submit written claims before the deadline. The personal representative reviews each claim, approving or rejecting them under A.R.S. § 14-3807.
See A.R.S. § 14-3807: https://www.azleg.gov/ars/14/03807.htm.
5. Payment of Debts, Taxes, and Expenses
Once claims are allowed, the personal representative pays administrative expenses, funeral costs, taxes, and creditor claims in priority order. Arizona law sets the payment hierarchy in A.R.S. § 14-3901.
See A.R.S. § 14-3901: https://www.azleg.gov/ars/14/03901.htm.
6. Final Accounting and Distribution
Before distributing remaining assets, the personal representative must file a final accounting with the court (A.R.S. § 14-3810), showing receipts, disbursements, and payments. After court approval, the representative distributes the balance to heirs under A.R.S. § 14-3971.
See A.R.S. § 14-3971: https://www.azleg.gov/ars/14/03971.htm.
Helpful Hints
- Publish the creditor notice promptly to start the claim period.
- Keep detailed records of all estate transactions and communications.
- Understand the four-month deadline for creditor claims under A.R.S. § 14-3808.
- Verify each claim’s validity before approval or rejection.
- Consult a probate attorney to navigate complex claims or disputes.