Estate planning rules in Arizona

Wills and self-proving affidavits

An Arizona paper will requires a writing signed by the testator, or by another person at the testator's direction and presence. Two witnesses must also sign within a reasonable time after witnessing the signing or acknowledgment.

Arizona 14-2504 allows a will to be executed, attested and made self-proved at once through testator acknowledgment and witness affidavits made before an authorized officer. An already attested will can be made self-proved at any time after execution in the same way. A signature on a self-proving affidavit attached to a will counts as a signature on the will if needed to prove due execution.

A will may be revoked by a revocatory act performed with that intent. Another person may perform the act in the testator's conscious presence and by the testator's direction. The testator is presumed to have intended a subsequent will to replace a previous will if the subsequent will makes a complete disposition of the estate.

A decedent may also use a will to expressly exclude or limit the right of a person or class to succeed to property passing by intestate succession.

Intestacy and the homestead allowance

Under Arizona 14-2102, if the decedent has surviving issue who are not also the spouse's issue, the spouse takes half of the intestate separate property.

Under A.R.S. 14-2103, the rules for parents and other relatives apply to intestate property that does not pass to a surviving spouse. If there is no descendant or parent, it goes to the parents' descendants by representation.

A surviving spouse is entitled to a homestead allowance of $18,000. With no surviving spouse, each minor and dependent child is entitled to $18,000 divided by the number of such children. The allowance is chargeable against any benefit or share passing to that person by will, nonprobate transfer or intestate succession, unless otherwise provided.

Trusts and trustee duties

Arizona's version of the Uniform Trust Code requires a definite beneficiary unless the trust is charitable, for an animal, or for a noncharitable purpose. The code also requires that the trustee have duties to perform, and the sole trustee and sole beneficiary cannot be the same person.

A power to select a beneficiary from an indefinite class is valid in Arizona. If the power is not exercised within a reasonable time, the power fails and the property passes to those who would have taken without it.

Under A.R.S. 14-10813, unless the trust instrument provides otherwise, a trustee keeps qualified beneficiaries reasonably informed about administration and the material facts they need to protect their interests. Within sixty days after acquiring knowledge that an irrevocable trust was created or a formerly revocable trust became irrevocable, the trustee notifies the qualified beneficiaries of the trust's existence.

Arizona also requires at least annual trustee reports to distributees and requesting beneficiaries. The report covers property, liabilities, receipts, disbursements and trustee compensation.

Creditors or assignees generally cannot reach it or a trustee distribution before the beneficiary receives it, except as Arizona law provides.

Nonprobate transfers, beneficiary deeds and pay-on-death accounts

Arizona A.R.S. 14-6101 treats a nonprobate transfer-on-death provision in instruments such as insurance policies, pension plans, IRAs, trusts, deeds and account agreements as nontestamentary, so it needs no will formalities. The provision does not limit creditors' rights under other state laws.

An Arizona beneficiary deed is valid only if executed and recorded as provided by law in the county recorder's office of the county where the property is located before the owner's death. If an owner records more than one beneficiary deed for the same real property, the last one recorded before the owner's death is the effective deed. If the last surviving owner did not execute the beneficiary deed, the transfer lapses and the deed is void.

Under A.R.S. 14-6212, on the death of the sole party or last survivor of a pay-on-death account, sums on deposit belong to the surviving beneficiaries. Two or more survivors take in equal and undivided shares. A pay-on-death designation on a multiple party account without right of survivorship is ineffective, and a tenancy-in-common designation establishes that there is no survivorship.

Creditor claims against an estate

The personal representative publishes a notice to creditors once a week for three successive weeks in a county newspaper of general circulation. The notice tells creditors to present claims within four months after first publication. Claims must be presented within four months after the published notice, or within sixty days after the mailing or other delivery of the notice, whichever is later.

The notice deadlines and the separate limit measured from death both restrict the time for presenting claims. A claim based on a contract with the personal representative must be presented within four months after performance by the personal representative is due. Any proceeding to enforce a mortgage, pledge or other lien upon property of the estate is preserved.

A personal representative is a fiduciary who observes the standards of care applicable to trustees under sections 14-10804 and 14-10806. The same duties of accounting that apply to trustees also apply.

Powers of attorney

Arizona A.R.S. 14-5501 requires a durable power of attorney to contain words showing the principal's intent that the authority be exercisable after incapacity and regardless of elapsed time, unless a definite termination time is stated.

Execution requires a witness other than the agent, the agent's spouse or children, or the notary. It also requires acknowledgment by the principal and a witness affidavit before a notary. Arizona recognizes a power of attorney validly executed in another U.S. jurisdiction under that jurisdiction's law.

Guardianship and conservatorship

Arizona A.R.S. 14-5304 allows a guardian appointment only on clear and convincing evidence of incapacity and need, and that the person's needs cannot be met by less restrictive means, including technological assistance. Courts may appoint a limited guardian and set time limits and limits on the guardian's powers based on the extent of the ward's incapacity.

The petition also states whether the alleged incapacitated person is the principal under a durable power of attorney nominating a guardian. If so, a copy of that power of attorney is attached.

The alleged incapacitated person is entitled to be present at the hearing, to see or hear all evidence on their condition, to present evidence, and to cross-examine witnesses.

Under A.R.S. 14-5401, a court may appoint a conservator only if it specifically finds, by clear and convincing evidence on the record, that the person is unable to manage their estate and affairs effectively for reasons such as mental illness or mental deficiency. The person allegedly in need of protection must also have appeared before the court in person or by virtual means for certain protective orders.

Thresholds and rates change. Check the state's own current figures.

Common questions