{"id":1146,"date":"2019-04-02T21:04:14","date_gmt":"2019-04-02T21:04:14","guid":{"rendered":"https:\/\/www.jacksonwhitelaw.com\/arizona-estate-planning\/?p=1146"},"modified":"2022-08-30T14:18:31","modified_gmt":"2022-08-30T14:18:31","slug":"arizona-intestate-succession-laws","status":"publish","type":"post","link":"https:\/\/www.jacksonwhitelaw.com\/arizona-estate-planning\/blog\/arizona-intestate-succession-laws\/","title":{"rendered":"Arizona Intestate Succession Laws"},"content":{"rendered":"

Introduction<\/h2>\n

When someone passes away without a will, they die \u201cintestate<\/a>,\u201d and the distribution of their estate is subject to the state\u2019s intestacy laws. Intestate succession will vary from case to case, depending on the decedent\u2019s family situation. In Arizona, intestate succession laws give preference to the decedent\u2019s spouse and children<\/a>. If the decedent does not have a spouse or children, the decedent\u2019s parents, siblings, and extended family<\/a> may be entitled to portions of the estate. In rare cases where there are no family members who step forward to claim the estate\u2019s assets, the state<\/a> can step in and claim the assets.<\/p>\n

Following is a brief overview of 7 common family situations, and how intestate succession would affect the distribution of a decedent\u2019s assets through probate.<\/p>\n

If you are married, and you do not have children<\/h3>\n

If you are married without children, your spouse will receive your entire estate. In any case where all of a decedent\u2019s assets are transferred to the spouse, the decedent\u2019s estate is exempt from any applicable estate taxes. When the surviving spouse dies, the estate will be subject to a joint estate tax if the assets are worth more than $22.4 million (as of 2018).<\/p>\n

If you are married, and you have children with only your current spouse<\/h3>\n

As long as all of your children are with your current spouse, your spouse will receive the entire estate. Again, no estate taxes are due until the surviving spouse passes away (if applicable).<\/p>\n

If you are married, and you have children from a former spouse or partner<\/h3>\n

In this situation, your current spouse is entitled to 50% of the estate. Any children from a separate relationship would split the remaining 50% of your estate. For this and all subsequent situations, your estate will be subject to individual estate taxes if the assets are worth more than $11.2 million.<\/p>\n

If you are single, and you have children<\/h3>\n

Absent a spouse, your children will receive your estate. Note that in any case where a minor child receives an inheritance, the court will need to appoint a conservator to administer the assets on their behalf until they turn 18.<\/p>\n

If you are single, and you do not have children<\/h3>\n

This is where intestate succession can get tricky. If you are not married and you do not have any descendants, your assets will be distributed in the following order:<\/p>\n

    \n
  1. Your parents<\/li>\n
  2. If no surviving parents, your siblings (with representation)<\/li>\n
  3. If no surviving parents, siblings, nieces or nephews, your grandparents (with representation)<\/li>\n
  4. If no surviving immediate or extended family, the state can claim your assets<\/li>\n<\/ol>\n

    The term \u201crepresentation\u201d means that a rightful heir\u2019s descendants can claim an inheritance if the heir is deceased. For example, let\u2019s say a decedent\u2019s only sibling is declared the rightful heir to the estate through intestate succession. If the sibling is deceased, their children (the decedent\u2019s nieces and nephews) can claim their deceased parent\u2019s share of the inheritance. Similarly, if there are no surviving parents, siblings, nieces, nephews, or grandparents, then other descendants of the grandparents (the decedent\u2019s uncles, aunts, and cousins) can claim a portion of the estate.<\/p>\n

    If you have a significant other, and you do not have children<\/h3>\n

    Partners, boyfriends, and girlfriends do not have any legal claim to an estate. Under Arizona\u2019s intestate succession laws, the estate would pass to the decedent\u2019s immediate or extended family (as discussed previously).<\/p>\n

    If you have a significant other, and you have children<\/h3>\n

    In this case, your children would receive your estate. Again, minor children would require a court-appointed conservatorship to administer the funds to them until they turn 18.<\/p>\n

    How to initiate intestacy probate proceedings<\/h3>\n

    If you are an interested party to the estate, you can start the probate process by submitting a petition for probate with the court in the county where the decedent lived or owned property. In the petition, you\u2019ll be asked to provide an estimate of the estate\u2019s assets and a list of family members\u2019 names and addresses, so they can be notified. If the other family members don\u2019t object, you can request that the court appoint you to be the estate\u2019s personal representative<\/a> who handles the estate throughout the probate process. If the other family members object to your serving as personal representative, or if the judge does not believe you are qualified for the responsibility, the court can appoint a neutral third-party special administrator<\/a> to handle the case.<\/p>\n

    What constitutes an estate?<\/h3>\n

    The state of Arizona has a community property law that differentiates between separate property<\/a> and community property<\/a>. Any assets that an individual accumulates before marriage, after a divorce, or after legal separation, are considered separate property. Assets that are accumulated during the marriage are shared evenly, with each spouse owning a 50% share. Separate property that is comingled with community property to the point that the assets cannot be distinguished also become community property. When a spouse passes away, their estate consists of their separate property, and their share of the community property.<\/p>\n

    Estate taxes<\/h3>\n

    Individual estates worth more than $11.2 million and joint estates worth more than $22.4 million will be subject to estate taxes. Depending on the final value of the estate, the tax can range from 18% to as high as 40%. When an individual transfers assets to their spouse, those assets are exempt from the individual estate tax, and will instead be subject to the joint estate tax when the surviving spouse passes away. Considering that only 0.1% of Americans make enough to qualify for estate taxes, the vast majority of estates don\u2019t need to worry about estate taxes.<\/p>\n

    Are there any assets that are exempt from intestacy proceedings?<\/h3>\n

    Any assets that have a contractual beneficiary<\/a> are exempt from probate. That means whether or not the decedent had a will doesn\u2019t matter\u2014these assets will pass directly to the beneficiary listed on the account outside of probate court. Such assets include:<\/p>\n