Disclaimer: This article provides general information under Arizona law. It does not constitute legal advice. Consult a licensed attorney for guidance specific to your situation.
Detailed Answer
When an estate holds real property, the personal representative must bring that asset into the probate estate to settle valid claims. Below are the key steps under Arizona Revised Statutes (A.R.S.):
- File a Probate Petition
The personal representative (executor or administrator) petitions the Superior Court in the county where the decedent lived. This initiates probate. See A.R.S. §14-3106 for appointment procedures. - Issue Letters and Notify Creditors
After appointment, the court issues Letters of Administration or Letters Testamentary. The representative must publish a Notice to Creditors and mail direct notices to known creditors. See A.R.S. §14-3801. Creditors then have four months to file claims. - Inventory and Appraisal
Within 90 days of appointment, the personal representative must file an inventory and appraisal of estate assets, including real property. This establishes current value and notifies the court and beneficiaries of the estate’s holdings. See A.R.S. §14-3802. - Petition to Sell Real Property
To convert real property into cash, the representative files a petition for sale of real property under court supervision. Arizona law grants the representative authority to sell property for the payment of debts and expenses. See A.R.S. §14-3901 and A.R.S. §14-3902 for procedural requirements. - Provide Notice and Obtain Court Approval
The court sets a hearing date and requires notice to all beneficiaries and interested parties. If no objections arise or the court overrules them, it signs an order authorizing the sale. - Sell the Property
The representative lists the property, accepts the highest bid (subject to court approval), and closes escrow. Proceeds deposit into the estate account. - Pay Estate Claims
The personal representative pays administrative expenses, valid creditor claims, and any tax obligations in the priority order outlined in A.R.S. §14-3716. If funds remain, the representative distributes the balance to heirs or devisees per the will or intestacy rules. - Close Probate
After settling debts and distributions, the representative files a final account and petition for discharge. Upon court approval, the estate closes.
Helpful Hints
- Track all deadlines: inventory (90 days), creditor claims (4 months).
- Hire a licensed appraiser for accurate property valuation.
- Keep detailed records of notices, filings and sales documents.
- Communicate with beneficiaries to avoid surprises at hearing.
- Consider estate liquidity options (e.g., short-term loans) to delay sale if market conditions are poor.