Distributing Smaller Estates in Arizona
October 7, 2008
Depending on your situation, Probate may not be needed.
Any estate that contains under $50,000 of value in personal property or real estate valued at less than $75,000 may be able to take advantage of Affidavits of Succession, A.R.S 14-3971.
WAGES/SALARY
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 DEBTS AND TANGIBLE PERSONAL PROPERTY
Thirty days after the death, the beneficiary may draft an affidavit that obliges anyone holding personal property owned by the deceased to be turned over. This also includes stock. This is also true for any legally binding debt that is owed. There are two exceptions:
1) That the total value of the combined personal property value and indebtedness not exceed $50,000 and;
2) That there is not a probate proceeding pending in court.
AUTOMOBILES
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.
Affidavits regarding personal property and debts do not have to be filed with the Court. They do not need a Judge’s signature or the stamp of the Probate Registrar to be legal. It may be prudent to present a copy of the statute when presenting the affidavit in case the possessor of the asset has a concern about the legality of the process.
REAL ESTATE
No sooner than six months after the date of death a successor may file in the court in which the decedent was domiciled at the time of death or if the decedent was not domiciled in Arizona then in the county in which the real estate is located an affidavit, subject to penalties of perjury, describing the property and the interest of the decedent in that property along with the following affirmations:
1) There isn’t a current probate proceeding for the deceased in any court.
2) That the value of the property, less liens and encumbrances, does not exceed $75,000 as valued at the date of death.
Property value is assessed by using the cash value as shown in the assessment rolls of the year when the individual died (unless there is debt secured by a lien on the real estate. In which case, the property value is set by the unpaid principal balance due on the individual’s date of death.)
3) All funeral expenses, and expenses of last illness, and all unsecured debts of the decedent have been paid.
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 recording the certified copy in the county in which the real estate is located the successor puts the world on notice that he/she is now the legal owner of the property.
Affidavits of Succession are a great alternative to probate. They are quick and easy and can be prepared by a competent paralegal or certified legal document preparer.
Comments
Got something to say?