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How to Initiate Arizona Probate Process

Posted by Zach Dana on November 21, 2016

Arizona Probate Process

how-to-initiate-arizona-probate-process

What is probate and how does it affect me?  When you create an estate document such as a will you will nominate a personal representative to carry out your wishes.  He or she will be responsible for seeing your estate through probate.  Depending on the size of the estate and cooperation of the beneficiaries; probate can be a lengthy, expensive, and public process.

If you find yourself in the role of personal representative (known in some states as an executor) it is always in your best interest to research your role and/or seek professional assistance.  Probate can be a very involved process and hiring a legal expert can be enormously helpful.  Your responsibility as an executor or personal representative can be time consuming and burdensome.  You will have legal deadlines and filings to meet.  In addition, your decisions throughout the process can be scrutinized by the court and the estate’s beneficiaries.

  1. Identify which assets need to go through probate

Many accounts and assets can avoid probate altogether. Bank accounts that are established as Paid on Death (POD) or Transfer on Death (TOD) will pass directly to the designated beneficiary.  Many people also utilize a living trust to avoid probate.  Any assets placed in the trust can circumvent the court process.  Life insurance is usually another asset that is not included in probate as well as community property with right of survivorship.

Assets that do not fall into the above categories will most likely need to be presented to the court.  For instance, if a living trust exists but there are assets that were not placed in the trust those funds will be required to go through probate.  Any asset that does not have a clear and legal beneficiary will need to be determined by the court.

  1. Identify which probate process is needed.

The state of Arizona has three types of probate available depending on the needs of the estate.  Informal probate is the easiest of the three.  This is available when a valid and uncontested will is present.  The executor will administer the estate with minimal assistance from the court.  The formal probate process is another option but is a bit more complicated.  This type of probate is used when there are legal issues that need to be resolved such as a contested personal representative or conflicting interpretations of a will.  Finally, there is supervised probate.  This is by far the most complicated of the three.  Supervised probate is entirely supervised by the court.  Every action and decision involving the estate must be submitted and approved by the court.

  1. File the will and petition with the court.

As an estate’s designated personal representative you are responsible for presenting the will of the deceased to the court.  You will also need to file a petition to act as the representative of the estate.  This filing marks the beginning of the probate process.

  1. Obtain a letter of administration

Once a will is submitted, the court will determine its validity.  This is usually a straightforward process. However, if there are multiple wills or a challenge to the will this procedure can become quite complicated.  Once a will is validated and you are approved as the personal representative you will receive a letter of administration.

  1. Notify the heirs.

You, acting as the personal representative, are obligated to notify all the estate’s beneficiaries via mail within 30 days of your appointment.

  1. Notify creditors.

Once you are formally confirmed as the personal representative of the estate, one of your primary obligations is to notify creditors of the deceased’s death.  You will have to communicate directly with all known creditors and publish notification in a local newspaper once a week for three weeks in an attempt to notify any unknown creditors.

  1. Inventory and appraise everything.

Any asset that is included in the probate process needs to be documented and valued.  As the personal representative it is your job to safeguard all estate assets until probate is completed.  Do not retitle any assets to your name or add yourself to any account.

  1. Pay outstanding, verified debts from the estate assets.

As creditors make claims against the estate you will need to make sure each claim is legitimate.  Once a claim has been verified you are responsible for paying that debt from the proceeds of the estate.  It is important to keep meticulous records of all assets, debts and verified payments.

  1. Pay taxes

You are required to file a final tax return and pay all applicable taxes to the IRS and state of Arizona.

  1. Distribute remaining funds as dictated in the will

Once all estate debts have been paid, you will need to distribute the remainder of the funds to the beneficiaries.  You can be held personally liable if the remaining assets are not distributed correctly.

  1. Close the estate

In an informal closing, a Letter of Closing should be filed with the court and sent to all beneficiaries and creditors.  Be certain to keep a copy of the mailing and a list of everyone it was sent to.

Probate can be a very involved and time consuming process even in the best of circumstances.  If you find yourself in the position of personal representative, please seek qualified legal assistance.  As the estate’s representative you are entitled to hire representation at the expense of the estate.  Dana Law Group’s experienced team of professionals can walk you through every step of the probate process and make this transition as painless as possible.  Our experts can help you meet every obligation and deadline and execute your loved one’s estate efficiently.