Probate is the legal process of transferring a deceased person’s assets to their heirs or beneficiaries. In Arizona, the probate process can be complex, particularly when the deceased person has died without a will, known as “intestate.”
Before diving into the specifics of Arizona’s intestacy laws, it’s important to understand what assets are considered part of the deceased person’s estate and which assets can potentially transfer to heirs without going through probate. In Arizona, if the deceased person was single, their estate consists of all their assets. If the deceased person was married, then their assets are subject to Arizona’s community property laws. Basically, any assets acquired before the marriage, and any assets acquired after a divorce or legal separation, are considered individual property. All property that is acquired during the marriage is considered community property and is shared equally by both parties.
There are several assets that can pass to the deceased person’s beneficiaries without going through probate. These assets have contractual beneficiaries built into the account, and the financial institution holding the assets will automatically transfer them to the beneficiaries as soon as they receive the deceased person’s death certificate. These assets will not be affected by intestacy probate proceedings. Some common examples of non-probate assets include bank and brokerage accounts with a payable-on-death or transfer-on-death beneficiary, life insurance policies, retirement accounts, real property held in joint tenancy or as tenants by the entirety and trusts.
In Arizona, probate proceedings are subject to the Uniform Probate Code (UPC) along with applicable regulations in ARS Title 14 – Trusts, Estates, and Protective Proceedings. To open probate proceedings, a family member or friend will need to file a petition with the county court. During the probate proceedings, the court will notify all interested parties, gather and take an inventory of the deceased person’s assets, pay debts, bills and taxes, distribute the remaining assets to the legal heirs, and close the estate.
It is important to note that in Arizona, the probate process can be simplified with the use of a Pour-Over Will in conjunction with a Living Trust Agreement. This can allow the assets to bypass probate in Arizona and be distributed quickly and privately. It is also worth mentioning that Arizona has a small estate procedure that allows for the transfer of assets worth $75,000 or less for personal property and assets worth less than $100,000 for real property without the need of going through probate.
If you are named as the personal representative of an estate in Arizona or if you are an heir or beneficiary of an Arizona estate, it’s important to seek the advice of an attorney. An attorney can help guide you through the probate process and ensure that all of your rights are protected.
The best way to protect yourself and your family is to have a proper estate plan set up to avoid probate in Arizona.
If you have questions about Real Property related to Probate, I have answers contact me I’m Marvin with ProbateinArizona.com