Distributing Smaller Estates in Arizona

Is Probate necessary for you? Perhaps there’s an easier way.

If the estate includes less than $50,000 of personal property and less than $75,000 worth of real estate then you may be able to take advantage of A.R.S 14-3971, Affidavits of Succession.

WAGES

After the individual’s date of death, an affidavit may be given to his or her employer at any time. This can authorize the surviving spouse to receive any wages due up to $5,000 (as long as an Application for probate proceeding isn’t pending).

PERSONAL PROPERTY AND DEBT

At any time after 30 days from the date of death an affidavit may be drafted obligating the possessor of any tangible personal property owned by the decedent to be turned over to the successors. Tangible personal property includes stock. The same is true for any legally binding debt owed to the decedent, it must be paid. There are two caveats:

1) That the total value of the combined personal property value and indebtedness not exceed $50,000 and;

2) A Probate proceeding is not currently pending in court.

MOTOR VEHICLES

These fall under personal debts and tangible personal property. An affidavit is drafted and sent to the Dept. of Motor Vehicles, which then provides a new title to the beneficiary.

These personal property/debt affidavits don’t have to be filed with the court, nor do they need a signature from a Judge, nor a stamp from the Probate Registrar to be legal. When providing a possessor of one of these assets with an affidavit, it may also prove smart to supply them with a copy of the statute so they can understand its legality.

REAL ESTATE

Not before 6 months from the date of death may the successor file in court under which the deceased was domiciled at the time of death (or if the deceased wasn’t domiciled in Arizona, then the county in which the real estate is located), subject to penalties of perjury, describing the property and the decedent’s interest in that property along with the following affirmations:

1) No probate proceeding is underway in any jurisdiction for the decedent.

2) That the value of the property, less liens and encumbrances, does not exceed $75,000 as valued at the date of death.

The real estate’s value is established using the value in the assessment rolls for the year when the death occurred. If there is any debt that is secured by a lien on the property, then the value is established by the unpaid principal balance due at the date of death.

3) Expenses relating to the individual’s last illness before death, the funeral costs and all unsecured debts have been paid off.

4) There is no other individual who has rights to the interest of the decedent.

5) There is neither federal or Arizona estate tax due on the estate.

Once the affidavit is in order and filed with the court, the court will issue an Order which requires the Probate Registrar to then issue a certified copy of the affidavit.

By going through this process and recording a certified copy in the county where the real estate is located, the successor puts everyone on notice about whom the new legal property owner is at this time.

Quick, easy and able to be prepared by a competent paralegal (or certified document preparer), Affidavits of Succession are a superb alternative to probate.

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