What Assets Go Through Probate in Arizona?

When an Arizona resident passes away, state probate laws determine the process for administration of the person’s estate. Some assets in an estate are required to go through the probate process. Other estate assets do not go through probate. When settling a loved one’s estate or determining distribution of your own assets in an estate plan, understanding the difference between probate assets and non-probate assets is crucial.

Probate in Arizona

Probate is a court-supervised procedure established by state laws. Arizona has several types of probate, as well as an affidavit process for small estates. Probate is not required for every estate. Whether an estate must go through probate is determined by the nature and circumstances of the estate.

Even when probate is required, some assets in an estate may be categorized as non-probate assets or non-probate property, which do not go through the probate process. Assets that are required to go through the process are referred to as probate assets or probate property. Consulting with an experienced probate lawyer is the best approach to determining whether an estate must go through probate and what assets are subject to the process.

Assets Subject to Arizona Probate

The status of an asset as probate or non-probate property is independent of whether a person dies with or without a will. Generally, property required by law to go through the probate process includes assets that are solely owned by the deceased person and do not have a beneficiary or survivorship designation. Examples of probate property include:

• Any real estate (including a home) that is titled solely in the decedent’s name, when there is not a recorded beneficiary deed
• Motor vehicles or other property with a title, when there is no co-owner or death transfer provision
• Bank accounts without a payable-on-death (POD) designation
• Financial investment accounts and assets without a transfer-on-death (TOD) instruction
• Personal property, including household goods and collectibles without title documents
• Business assets titled solely in the deceased person’s name
• Other solely owned assets that are part of the estate

These types of probate property must complete the probate process, even if the decedent left a will that distributes the assets. A will only determines how property is distributed; it does not avoid the probate process. If the person died without a will, the same requirements apply to property in the intestate estate.

Assets Not Subject to Arizona Probate

Probate is a time-consuming and costly process. It also is a public process, through which personal and financial details about the estate become publicly available. For those reasons, individuals often take steps to avoid probate by getting help from a knowledgeable estate planning attorney and using available strategies and tools.

Establishing a revocable living trust is a strategy that many individuals use to avoid probate. This type of trust is not suitable for everyone, but if it is properly created and funded, property placed in the trust during an individual’s lifetime does not go through the probate process. To set up a living trust, it is essential to talk with an experienced estate planning attorney, who helps determine whether a trust is appropriate for your estate planning goals. If you decide to create a trust, your attorney also makes certain that the trust is properly established and funded.

In addition to property in a living trust, there are other types of non-probate property that do not go through the probate process, including:

• Property or assets owned as community property or in a joint tenancy with a right of survivorship, which pass automatically to the surviving owners
• Accounts with named beneficiaries (other than the estate), such as life insurance policies, Individual Retirement Accounts (IRAs) and other retirement accounts, and annuities
• Assets designated as Pay-On-Death (POD) and Transfer-On-Death (TOD), like bank accounts and securities
• Real estate for which there is a beneficiary deed

All of these types of property transfer after death without going through the probate process.

A carefully structured estate plan can ensure that all property and assets avoid the probate process. However, it is essential to get help from an experienced estate planning attorney to ensure that your estate plan is effective in avoiding probate, while achieving your other estate planning goals and needs. You should never attempt to make your own estate plan or try to avoid probate of your estate without assistance from a knowledgeable lawyer. The do-it-yourself (DIY) approach has substantial risks and can create significant legal problems that may not be discovered until it is too late to fix them.

Schedule a Free Consultation With an Experienced East Valley Estate Planning Attorney

At Peterson Law Offices, our estate planning practice includes assisting with strategies to avoid the probate process. There is no charge for your initial consultation with us. We provide top-quality services at affordable prices and welcome inquiries from clients throughout the East Valley, including Queen Creek, San Tan Valley, Gilbert, Mesa, and Chandler. Schedule your free initial consultation by calling 480-878-5998 or using our online contact form.