In each probate case, a personal representative is either designated by the will, volunteer basis, or assigned by the court. The personal representative plays a very important role in this process. They are required to assess and distribute assets owned by the decedent.<\/p>\n
AZ probate law imposes on personal representatives to give adequate notice.\u00a0 As you can probably guess, this is but one of the many duties that personal representatives have under the Arizona Probate Code.\u00a0 In addition to giving adequate notice, personal representatives must create an inventory of the probate estate to which they are appointed to oversee.<\/p>\n
Creating an inventory is sometimes more difficult than others, depending on the size of the estate and the types of assets that the decedent owned.\u00a0 Regardless of the difficulty, however, personal representatives must make a good faith effort to create an inventory that lists the fair market value of all estate property.\u00a0 With real property, and even some personal property, this might require personal representatives to seek a professional appraisal.<\/p>\n
Upon completing the inventory, personal representatives are required by the Arizona Probate Code to file it with the court, or mail a copy of it to every heir or devisee.\u00a0 Further, if at any time the personal representative learns of an error in the inventory, he or she must make the proper amendments to the official inventory, and provide adequate notice to interested parties.\u00a0 It is not uncommon for personal representatives to have trouble abiding by the inventory requirements, and an Arizona probate lawyer can help them stay on track.<\/p>\n
The court does not take it lightly when personal representatives do not keep their obligations under the Arizona Probate Code.\u00a0 Certain breaches can cause personal representatives to lose their position, or even be held personally responsible to the estate.\u00a0 Personal representatives who have any confusion or concerns about issues such as creating a suitable inventory should consult with an Arizona probate attorney.<\/p>\n
If you are a personal representative, appointed to administer a probate estate under Arizona probate law, you are probably aware that you need to repay the decedent\u2019s creditors.\u00a0 In fact, to make sure that creditors are properly repaid, you have a duty under Arizona probate law<\/strong> to give notice to all creditors that you know exist.\u00a0 When a personal representative is appointed in your probate case, they\u2019re required to send out an official notice to all creditors who may have a claim on the estate. This official notice, known as the Notice to Creditors, allows creditors the chance to assert their rights.<\/p>\n Ideally, a probate estate has enough funds to not only repay creditors, but to also provide the decedent\u2019s heirs with an inheritance.\u00a0 Many times, however, this is not the case, and personal representatives must then decide how to divide and distribute the insufficient funds.\u00a0 If you are in this situation, know that Arizona probate law provides guidance so that you will know precisely how to divide the estate.\u00a0 More specifically, Arizona probate law provides a very specific framework that you must follow if the estate that you are handling has insufficient funds to repay all of the creditors.<\/p>\n Although Arizona probate law is clear on the order in which you should repay creditors, creditors themselves will not line up in an orderly fashion and wait for their disbursement.\u00a0 Rather, they will likely demand immediate payment, and operate under the assumption that the estate has the funds to repay their claim.\u00a0 As such, you should have a game plan of how you will repay creditors well before you make the first payment.\u00a0 To help you establish such a plan, you should work with an Arizona probate attorney who is familiar with this area of the law.<\/p>\n While it sounds simple enough, managing estate finances can actually be very difficult in certain instances.\u00a0 For example, Arizona probate law requires personal representatives to make tax considerations for the estate, which can be particularly complicated in larger estates where several properties are involved.\u00a0 Further, Arizona probate law requires personal representatives to take efforts to preserve the estate, which often requires them to make important investment decisions on the estate\u2019s behalf.<\/p>\n Personal representatives cannot be expected to know everything there is to know about finance.\u00a0 However, personal representatives are expected to inform their decisions wisely to protect the financial health of the estate, and this many times involves seeking the assistance of a qualified Arizona probate attorney.\u00a0 If you have recently been appointed to serve as a personal representative, it will be a tremendous help to seek legal counsel who can make help you keep your duties to the estate.<\/p>\n Under the Arizona Probate Code, personal representatives have a fiduciary duty to act in the best interest of the estate to which they are appointed to oversee.\u00a0 This fiduciary duty prohibits personal representatives from advancing their own interests.\u00a0 Many times, however, personal representatives are also situated to inherit a portion of the decedent\u2019s estate.\u00a0 Because these situations are inherently susceptible to conflicts of interest, the Arizona Probate Code provides specific instructions on how to approach them. \u00a0Under the Arizona Probate Code, the following situations may give rise to a conflict of interest:<\/p>\n Conflicts of interest include any sale or encumbrance to the personal representative, his spouse, agent or attorney, or any corporation or trust in which he has a substantial beneficial interest, or any transaction which is affected by a substantial conflict of interest on the part of the personal representative.\u00a0 A.R.S. \u00a714-3713<\/em><\/a>.<\/p>\n Where a personal representative enters into a transaction that creates a conflict of interest, any person with an interest in the estate can petition to have the transaction voided.\u00a0 This general rule has certain exceptions, however, that an Arizona probate attorney can help you understand. \u00a0To learn more about how to avoid conflicts of interest as a personal representative, or how to challenge a perceived conflict of interest, feel free to contact a probate attorney at JacksonWhite.<\/p>\n The Arizona probate court does not always supervise the probate process.\u00a0 In fact, supervised administration is much less common than unsupervised administration.\u00a0 Unsupervised administration is the usual way that probate estates are administered, so unless the will or the Arizona probate court says otherwise, every estate goes through probate without supervision.\u00a0 Nevertheless, even in an unsupervised administration, any interested person can petition the court for supervised administration to protect his or her interest in the estate.<\/p>\n\n
Duty to Properly Manage Finances<\/h4>\n
\u00a0<\/strong>Avoiding Conflicts of Interest<\/h4>\n
Arizona Probate Court Supervision in Administration<\/h4>\n