In the state of Arizona, probate<\/a> is only required if the decedent has any assets that did not transfer automatically upon their death. These assets tend to be titled individually in the decedent\u2019s name and will require a probate court to transfer the title of ownership to the intended beneficiary.<\/p>\n The following assets are subject to probate:<\/p>\n These assets (sometimes known as probate assets) cannot pass to the decedent\u2019s heirs until a judge transfers title of ownership through probate. As long as the decedent has a will, their probate assets will transfer to their intended beneficiaries. If the decedent died without a will (known as intestacy<\/a>), their probate assets will transfer to their legal heirs according to the state\u2019s laws of intestate succession. Unfortunately, intestate succession does not leave family members with much say in the distribution of assets, and it can significantly lengthen the probate process.<\/p>\n In Arizona, intestacy laws give preference to the surviving spouse and children (ARS 14-2102<\/a>). If the decedent was single and did not have children, the estate can pass to the decedent\u2019s parents, siblings, or other extended family members (ARS 14-2103<\/a>). In rare cases where there are no immediate or extended family members to claim the assets, the state can claim the estate (ARS 14-2105<\/a>).<\/p>\n Probate can be a long and costly process, so it\u2019s always best to avoid probate court as much as possible. Fortunately, most assets can transfer to beneficiaries outside of probate with proper planning. Assets that include a contractual beneficiary are designed to automatically transfer to the intended owner upon the decedent\u2019s death. The financial institution holding the assets will usually transfer the assets as soon as they receive a copy of the death certificate. These assets (sometimes called non-probate assets) include:<\/p>\n If the decedent has properly positioned all of their property as non-probate assets, probate will not be required. That said, even if all of your assets are positioned to bypass probate, it may still be wise to draft a will, so it\u2019s important to discuss your needs with a qualified estate planning attorney.<\/p>\n The state of Arizona allows small estates to transfer probate assets outside of probate court under the following conditions:<\/p>\n Under the small estate exemption, a family member will need to submit an affidavit<\/a> with the county court. The affidavit will list an inventory of the decedent\u2019s assets, the names and addresses of family members, and a copy of the will. Once granted, the estate\u2019s personal representative will be free to transfer the assets with a simple rubber-stamp approval from a probate judge.<\/p>\n There are 5 important steps in the probate process:<\/p>\n If the decedent left a will, the probate court will need to validate the document. Specifically, the court needs to ensure the testator was over 18 and of sound mind (ARS 14-2501<\/a>), and that the testator was not subject to undue influence. They\u2019ll also check to make sure the document is properly signed and dated by the testator and at least two witnesses (ARS 14-2502<\/a>). If the will isn\u2019t notarized, the judge may summon the witnesses to testify as to the document\u2019s authenticity; if the will is notarized, it\u2019s consider self-proved<\/a> and will not require calling the witnesses.<\/p>\n If the decedent nominated an executor in their will, this individual will serve as the estate\u2019s personal representative<\/a>. In the absence of a will, a family member can petition the court to be appointed as personal representative. If the judge cannot find a qualified family member, or if there is too much discord among family members to agree on a personal representative, the judge can appoint a third-party special administrator<\/a> to handle the estate\u2019s affairs.<\/p>\n The personal representative will be asked to take an inventory of the decedent\u2019s assets. This includes collecting account statements for liquid assets, and hiring professional appraisers to determine the fair market value of illiquid assets such as real estate, art, jewelry, etc.<\/p>\n Once the personal representative has an inventory of the assets, he or she will need to use the assets to satisfy any outstanding liabilities in the following order:<\/p>\n In most cases, the personal representative will use the liquid assets (bank accounts, brokerage accounts, cash, etc.) to cover the estate\u2019s liabilities. If there aren\u2019t enough liquid assets, the personal representative is authorized to sell assets to cover the debts. If there are more liabilities than assets, the estate is considered insolvent, and all of the assets will be liquidated to cover as much of the liabilities as possible.<\/p>\n When the liabilities have been settled and the final distribution is approved by the court, the personal representative can finally transfer any remaining assets to the decedent\u2019s beneficiaries. As long as there is a valid will, the distribution will be dictated by the decedent\u2019s instructions. In the absence of a will, the distribution will proceed according to the laws of intestate succession.<\/p>\n Informal probate<\/a> takes place when there are no contests to the will or objections to the distribution. Informal probate allows the personal representative to manage their responsibilities with minimal court supervision, so it tends to be faster and more cost-effective. Generally speaking, informal probate proceedings can wrap up in 4 \u2013 6 months.<\/p>\n If anybody contests the will or objects to any aspect of the probate process, the proceedings will shift to formal probate. With formal probate, the court will hold additional hearings to address the contests and objections, and the judge will need to supervise the personal representative\u2019s actions. Formal probate proceedings can take up to a year or longer.<\/p>\nWhich Assets Are Subject to Probate?<\/h4>\n
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Which Assets Are Not Subject to Probate?<\/h4>\n
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Is It Possible for Probate Assets to Bypass Probate Court?<\/h4>\n
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What Happens During the Probate Process?<\/h4>\n
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Validate the Will<\/h4>\n
Appoint a Personal Representative<\/h4>\n
Gather the Assets<\/h4>\n
Settle the Liabilities<\/h4>\n
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Distribute the Assets<\/h4>\n
Formal vs. Informal Probate<\/h4>\n
Do You Need Help with Probate Matters?<\/h4>\n