PROBATE IN ARIZONA BECOMES EVEN EASIER
by Elder Law Attorney Lora Johnson, Johnson and Ashworth P.L.L.C.
In a recent legislative session, the Arizona state congress passed, and the Governor signed into law, changes to ARS §14-3971. All states have various thresholds that allow for an expedited probate process depending on the amount of money in an estate that needs to be probated. In one potential example, a refund check for $500 arrives from the hospital after your loved one passes away, but it is written to the decedent. Another example could be that your parents forgot to put a new account holding $70,000 into their Trust, and you cannot access it after their deaths. A third example might be a wrongful death claim that pays out $50,000 for the death of your sister, and you are the beneficiary—but the funds are paid to your sister. In Arizona it is most likely that in each of these situations you would be able to file an Affidavit for Collection of Personal Property in order to collect these assets.
If the assets needing to be probated include real property with equity of less than $100,000, ARS §14-3971 allows for the filing of an Affidavit for Collection of Real Property with the Superior Court. This Affidavit can be certified by the Court and then recorded on the property to verify ownership.
If the assets needing to be probated include assets that are not real estate but personal property (everything but real estate) and the total value is less than $75,000, they can be gathered with an Affidavit for Collection of Personal Property.
However, in the last legislative session an increase in the exemption amounts was voted into law. Effective 90 days after the adjournment of the first legislative session in 2025 the new legislation will be in effect. One can avoid a full probate and file an Affidavit for Collection of Personal Property if the total amount requiring probate is less than $200,000. If the amount of equity in real property requiring probate is less than $300,000 then one would be able to avoid a full probate and file and Affidavit for Collection of Real Property.
Of course, assets that are correctly funded to a Revocable Living Trust or have specific POD (payable on death), TOD (transferable on death), or specific named beneficiaries continue to avoid the probate process. This change in the law is exciting and should significantly drop the amount of full probate filings required within the state.
The best news if that these changes are effective across the board as of the effective date and the date of death of the decedent is not relevant. The amounts are raised for everyone as of the change.