Heir Rights (AZ)
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As an heir, you likely have questions about the inheritance process in AZ, and your rights.
Overall, if you are entitled to receive an inheritance, you have the right to expect to receive that inheritance ... eventually. While some states attempt to put deadlines on estate settlements, an average estate takes 16 months to settle, and some take years (see Inheritance Timing).
Rights Under AZ Probate
Most estates are settled by an executor appointed by the court (often a family member), under a court-supervised process known as probate. The executor has significant discretionary power, but he or she has a fiduciary duty to act in the best interests of the estate, to follow the law, and to distribute estate proceeds to the rightful heirs.
However, AZ estates must satisfy obligations according to priority (for example, debts take precedence over distributions), so in some cases your inheritance will be less than expected, or even be completely consumed by other estate priorities (which must generally affect all potential heirs proportionately). See Estate Expenses, Fees, and Taxes for more information, and note that for your protection, estate executors must document all estate transactions and make these records available to the courts ... and in some states, must proactively deliver these records in a Final Accounting to the heirs as well.
Your rights as an heir include:
- Notice: Many states have laws that require an estate executor to notify you of the death and the estate proceeding if you are mentioned in the will, if there is no will and you are entitled to inherit by intestate succession, or even if there is a will that doesn't mention you, but you would have been entitled to inherit by intestate succession (i.e., you are an "heir-at-law").
- Estate Information: Many states require the executor to provide you a copy of the estate inventory, as well as a Final Accounting (what happened to the inventory, what estate expenses were incurred, etc.). If the estate is undergoing probate, and the state does not require that the executor directly supply you the information, you can simply make a public records request for the reports filed with the court.
- AZ Family Entitlements: If you are a surviving spouse or dependent child, you likely have additional rights that go beyond anything mentioned in the will or mandated by the laws of intestate succession. Surviving family members often have the right to remain living in the family home for a certain period of time, to automatically receive certain personal possessions, to receive a living allowance from the estate while it is being settled, and to receive certain minimum amounts (see AZ Family Entitlement details for your state).
- Reasonable Timeframe: Unless the asset is one that automatically transfers on death (such as an IRA with a named beneficiary), you can expect the process to take 12-18 months on average, and sometimes considerably longer (see Inheritance Timing). An executor has a duty to settle an estate in a reasonable timeframe, but most states are very lenient about such timeframes, and there are legitimate reasons that some estates take years to settle. On the other hand, some executor simply cannot handle the task, or unreasonably delay, and those can be grounds to ask the court to remove the executor and appoint someone else.
- Court Objections: If the estate undergoes probate (and most do), you have the right to object to the probate court about anything you think is being done incorrectly or improperly. You can object to the appointment of a particular executor, you can object to the validity of a will, you can object to particular distributions (not just your own), you can object to sales of assets, you can object to how long things are taking ... in fact, you can object to almost anything. You just need to make sure you have valid grounds for doing so, and it's important to realize that settling an estate is a difficult task that takes time. See Court to find your particular court.
- Lawsuits: If the probate judge does not respond to your objection as desired, or if there is no probate proceeding, then you can file a civil lawsuit against the estate. Such lawsuits can be expensive, and should be considered only as a last resort.
Additional considerations:
- Expectations: Please keep in mind that although a will may be specific about an intended inheritance, other factors can sometimes intervene to modify or even entirely invalidate the inheritance. See AZ Rules of Inheritance for details.
- Inheritance Taxes: Some states have inheritance taxes for which the executor has the responsibility of paying, out of your share, before giving you your remaining inheritance. If your executor is using EstateExec, it will tell him or her if such taxes apply.
- Executor Discretion: Unless the inheritance is a specific bequest, the executor may have some discretion in deciding how to give you your share of an estate. The executor may decide to liquidate assets and give you all cash (and cash equivalents), or the executor may mix and match assets to equal your share. You have to the right to ask for your share to be given in a certain form, but the executor does not have to respect your wishes. For this reason (and others), it is advisable to try to retain a good relationship with the executor (see Working with Executors).
- Inheritance Receipts: When you receive an inheritance, the executor will likely ask you to sign a receipt, which can be required. However, the executor will often ask you, as a condition of receiving the proceeds, to waive any rights you may to decide to sue the estate or the executor in the future. Such waivers are best practice for an executor, but heirs are not required to waive their rights, so the decision is up to you. It may be best to sign anyway, to preserve the relationship and to receive your inheritance in a timely manner, but your ultimate recourse is to either convince the executor to drop the waiver, or object to the court.
AZ Small Estate Rights
Most states have laws enabling small estates to be settled without full probate, sometimes without any court involvement at all. In such cases, there may be no formally appointed executor, and the heir can directly collect any inheritance to which he or she is entitled, by providing appropriate documentation to the current asset holders.
In Arizona, full probate is not required for "small" estates, enabling executors to save considerable effort and cost, and regardless of estate size, probate is not required if an estate contains only assets exempt from probate.
Small Estates - Personal Property
If an AZ estate contains <$75,000 in personal property (i.e., everything other than real estate), you may be able to use an Affidavit for Collection of Personal Property to skip probate entirely.
In calculating the value of personal property, you should value it as of the date of death, and ignore any debts other than secured liens and encumbrances (such as a car loan). Do not include assets that would not normally go through probate, such as community property with right of survivorship, assets with named beneficiaries (e.g., 401Ks, life insurance policies), and other standard probate exclusions.
Requirements
You can use the small estate affidavit process for personal property if:
- The personal property is worth <$75,000 as calculated above
- The death was more than 30 days ago
- No one has been appointed executor for the estate, and there are no such appointments pending
- The person claiming an asset is entitled to it
- Funeral expenses and any expenses from the last illness have been paid
Process
To use the small estate affidavit process:
- Prepare an Affidavit for Collection of Personal Property (see below)
- Provide a notarized copy of the affidavit to any custodian of estate assets to gain custody of the assets
- Do anything else required to settle the estate (and see Debts below)
- If everything goes smoothly, no court involvement should be necessary at all
Affidavit for Collection of Personal Property
An Affidavit for Collection of Personal Property requires the following information:
- Name and address of decedent
- A statement that all estate personal property is worth <$75,000
- A statement that >30 days have passed since the death
- A statement that you are entitled to collect the property
- A statement that no one has been appointed executor for the estate, and there are no such appointments pending
- A description of the property to be collected (i.e., bank account number)
The affidavit must be notarized, and it may be helpful to attach:
- A certified copy of the death certificate
- A certified copy of the will (if there is one)
See also complete small estate package for Maricopa County.
Vehicles
Vehicles involve an extra step, requiring you to obtain title via the Motor Vehicle Department (MVD) of the AZ Department of Transportation. Simply fill in a Non-Probate Affidavit (Form 32-6901) and deliver it to the MVD.
See ARS § 14-3971-B.
Small Estates - Real Property
If the estate contains <$100,000 in real property (i.e., real estate), you may be able to bypass most probate court interactions (see preceding section for handling personal property).
In calculating the value of real property, you should value it according to the tax assessor's valuation in the year of death, subtracting any secured liens and encumbrances (such as mortgages). Do not include assets that would not normally go through probate, such as community property with right of survivorship, and other standard probate exclusions.
Requirements
You can use the small estate affidavit process for real property if:
- The real property is worth <$100,000 as per above
- The death was more than 6 months ago
- No one has been appointed executor for the estate, and there are no such appointments pending
- The person or persons claiming the property is entitled to it, and no one else is
- All unsecured estate debts have been paid, and no federal estate tax is due
Process
To use the small estate affidavit process:
- Prepare an Affidavit for Transfer of Title to Real Property (see below)
- Submit the affidavit to Probate Registrar at Superior Court and obtain court certification (see Court below)
- Record the certified affidavit with the county recorder in the county where the property is located
- Do anything else required to settle the estate
Affidavit for Transfer of Title to Real Property
An Affidavit for Transfer of Title to Real Property requires the following information:
- Name and address of decedent
- Statements that each requirement listed above has been met
- A description of the property to be collected (i.e., bank account number)
Every person inheriting an interest in the property must sign the affidavit, and you must attach:
- A certified copy of the death certificate
- A certified copy of the will (if there is one)
See also complete small estate package for Maricopa County.
See ARS § 14-3971-E.
Summary Probate Administration
If an Arizona estate contains very little that would have to go through probate, you can short-circuit the probate process via summary administration.
Requirements
To qualify for summary administration, an estate cannot be worth more than the sum of:
- Any family allowances
- Estate administration expenses (including executor fees)
- Reasonable funeral expenses
- Reasonable and necessary medical expenses for the last 60 days of life
In calculating estate value, you should value assets as of the date of death, and ignore any debts other than liens and encumbrances such as mortgages. Do not include assets that would not normally go through probate, such as community property with right of survivorship, assets with named beneficiaries (e.g., 401Ks, life insurance policies), and other standard probate exclusions.
Process
You can settle an estate via summary administration using the following steps:
- Open a probate case with the court
- Immediately collect and distribute assets to the parties entitled to them in accordance with the qualification criteria, ignoring any other creditors
- File a closing statement with the court (see below)
- Send a copy of the closing statement to all distributees, and include a full accounting of estate financials (i.e., the original estate inventory and how it was disbursed)
- Send a copy of the closing statement to all unpaid creditors
Closing Statement
A closing statement must state:
- The estate was not worth more than the items listed above under Requirements
- You have administered the estate by disbursing and distributing it to the persons entitled thereto
- You have sent the notices required above
See ARS § 14-3973 and 3974.
Estate Settlement Considerations
Before paying any debts or making any distributions, be sure to account for any Family Entitlements in AZ, which typically have priority over everything except expenses of the last illness, funeral charges, and any estate administrations expenses.
Even if the estate does not go through probate, you may still be entitled to Executor Compensation in AZ, and this compensation also has priority over most estate debts.
Estate debts have priority over most distributions in turn, so before distributing assets you should resolve any estate debts. If the estate makes any distributions beyond amounts set aside for family entitlements, unpaid creditors have the right to sue the recipients for repayment using those excess distributions. Consequently, even if the settlement process does not require you to publish a Notice to Creditors, you may want to follow AZ probate rules for finding estate debts, since doing so may limit the time creditors have to pursue repayment.
If estate solvency is uncertain, an executor should consider going through official probate for the increased creditor protection it offers. Alternately, such uncertainty can sometimes persuade creditors to forgive a portion of debts, since they will want to avoid legal expenses as well, and may prefer to get something rather than nothing.
See also Making Distributions.
Court
In Arizona, estate probate is handled by a Superior Court in the county in which the decedent lived.
Estate Debts
Finally, note that as an heir, you are NOT responsible for paying the debts of the AZ estate out of your own funds. You do NOT inherit responsibility for paying the debts of parents, for example. If the estate is insolvent (i.e., cannot pay all its bills), then creditors simply end up with less than owed, or even nothing ... as do you.
If an estate ends up being insolvent, and you somehow received a distribution anyway (perhaps through a small estate process), some states allow creditors to sue you to reclaim any amounts they are still owed. So you can't inherit a debt outright, but if you receive a distribution that the estate needed to pay its bills, you may be forced to pay out some or all of that distribution.
Additional Information
For more information about inheritances in general, see EstateExec Heir Guide.
In case you're interested, heir rights in other states can be found here:
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