What steps are needed to include real property into the estate successfully in Arizona?

Disclaimer

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a licensed attorney to discuss your specific situation.

Detailed Answer

Under Arizona law, including real property in your estate requires clear title and proper documentation. Follow these steps to ensure the property passes to your heirs or beneficiaries as you intend:

1. Confirm Current Title and Ownership.

   Obtain a copy of the deed from the county recorder’s office to verify how you hold title (sole ownership, joint tenancy, community property, etc.).

2. Choose a Transfer Method.
   • Last Will and Testament. Devise the property by will. Ensure it meets the formal requirements under ARS §14-1202 (witnesses, signature).
   • Revocable Living Trust. Create a trust and transfer title via grant or quitclaim deed into the trust. A properly funded trust keeps property out of probate (ARS §14-901 et seq.).
   • Transfer on Death Deed. Use a beneficiary deed under ARS §33-405 to name a beneficiary who takes title at death without probate.
3. Prepare and Execute the Deed.

   Work with a title company or attorney to draft the appropriate deed (grant, quitclaim, or beneficiary deed). Sign before a notary public, as required by ARS §33-402.

4. Record the Deed.

   File the signed deed with the county recorder in the county where the property lies. Recording perfects your transfer and provides public notice.

5. Execute a Pour-Over Will (if Using a Trust).

   Include a pour-over will to catch any assets not titled in the trust. Ensure it meets the formalities under ARS §14-1202.

6. Initiate Probate or Trust Administration (if Needed).

   If you did not use a beneficiary deed or fully funded trust, file a probate petition in superior court under ARS §14-3901. The court will supervise asset collection, creditor notice, and distribution.

7. Serve Notice and Inventory Assets.

   Under probate rules (ARS §14-3132), provide notice to heirs and file an inventory listing all estate assets, including real property.

8. Distribute Title to Beneficiaries.

   Once debts and expenses are settled, the court or trustee transfers title to beneficiaries per the will, trust agreement, or beneficiary deed.

Helpful Hints

• Review title on all property every few years to catch errors or unintended ownership changes.
• Keep copies of recorded deeds, trust documents, and wills in a safe place accessible to your executor or trustee.
• Update beneficiary deeds and estate plans after major life events (marriage, divorce, birth of a child).
• Consult a real estate title company for deed preparation and recording procedures.
• Meet Arizona’s notary and witness requirements to avoid challenges to your estate plan.