Arizona: Enforcing or Disputing an Oral Agreement to Divide Wrongful Death Proceeds | Arizona Probate | FastCounsel
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Arizona: Enforcing or Disputing an Oral Agreement to Divide Wrongful Death Proceeds

Enforcing or Disputing an Oral Agreement to Divide Wrongful Death Proceeds in Arizona

Short answer: In Arizona, who can settle or divide wrongful death proceeds and how to enforce or challenge an oral agreement depends on (1) whether the agreement involved the personal representative (executor/administrator) or only family members/beneficiaries, (2) whether the agreement was actually carried out, and (3) what evidence exists to prove the agreement. You can ask the probate court to enforce an agreement or to reopen or contest distributions, or you can sue for breach of contract or seek a declaratory judgment. The process involves probate petitions, civil litigation, and careful attention to evidentiary and timing rules.

Disclaimer

This article is for general informational purposes only and is not legal advice. I am not a lawyer. For advice about a specific situation, talk to a licensed Arizona attorney.

How Arizona law treats wrongful death claims and who speaks for the estate

Under Arizona law, wrongful death and survival claims are statutory actions brought in particular ways. The wrongful death statute governs actions for death caused by the wrongful act of another; the personal representative normally brings survival claims and controls litigation on behalf of the estate. See Arizona wrongful death statutes: A.R.S. §12-611 and §12-612 (wrongful death and survival actions). You can read the text of those statutes on the Arizona Legislature website: A.R.S. §12-611 and A.R.S. §12-612. The probate code (Title 14, Arizona Revised Statutes) governs the duties and powers of a personal representative and how estate assets are administered: A.R.S. Title 14 (Probate).

Key issues when the agreement was oral

  • Who agreed? An oral agreement with the estate’s personal representative is stronger than one just between beneficiaries. The personal representative has a fiduciary duty; their binding commitment may be enforced by the probate court or through a civil action if it amounts to the estate’s direction.
  • Is the oral agreement enforceable? Oral agreements can be enforceable in Arizona, but they carry evidentiary and statute-of-frauds risks. Whether the agreement is subject to the statute of frauds depends on the subject (agreements dealing with an interest in land generally must be in writing; most personal-property distributions do not). Proving an oral contract requires credible witnesses, contemporaneous communications, emails, texts, or partial performance that confirms the deal.
  • Was there full or partial performance? If parties partially performed the oral agreement (for example, the estate paid part of the proceeds relying on the agreement), courts may enforce the agreement under doctrines like part performance or equitable estoppel.
  • Did the personal representative follow probate procedures? The personal representative must properly report, file accountings, and get court approval for distributions in many cases. Beneficiaries can contest an accounting or ask the court to approve or disallow distributions.

Practical step-by-step process to enforce or dispute an oral agreement

  1. Gather evidence immediately. Save communications (texts, emails), witnesses’ names, notes of calls or meetings, bank records showing distributions, and any documents referencing the agreement.
  2. Identify the decision-maker. Check probate filings to confirm who the personal representative is and whether they had authority to settle and divide the wrongful death proceeds. You can find filings at the county probate clerk’s office where the estate is open.
  3. Ask for an accounting and documentation. Under Arizona probate rules, beneficiaries can request the personal representative provide accountings and show how proceeds were allocated. If the rep fails to provide records, you can petition the probate court.
  4. Try negotiated resolution first. If practical, propose a written settlement that reflects the oral deal. A written, signed agreement avoids future disputes.
  5. If negotiations fail, file a probate petition. If distributions already occurred or the personal representative refused to follow the oral agreement, file a contest in probate court asking the judge to (a) enforce the agreement, (b) set aside an improper distribution, (c) surcharge the personal representative for breach of fiduciary duty, or (d) order an accounting. Probate petitions are usually the fastest way to get the court’s involvement in estate distributions. See general probate rules under A.R.S. Title 14: A.R.S. Title 14.
  6. Consider civil litigation (breach of contract/declaratory judgment). If the dispute involves beneficiaries or third parties who are outside probate or if the personal representative refuses court oversight, you may sue for breach of contract, unjust enrichment, or seek a declaratory judgment to determine parties’ rights to the proceeds.
  7. Be mindful of timing and statutes of limitation. Arizona limits the time to bring different claims; acting promptly preserves rights. (Consult an attorney about the specific limitation period for your claim.)
  8. If you suspect misconduct, seek removal or surcharge. If the personal representative acted dishonestly or negligently, beneficiaries can move to remove the representative and ask the court to surcharge (financially penalize) them for losses to the estate.

Common outcomes courts consider

  • Whether the personal representative had authority and whether the court previously approved a settlement.
  • The strength and credibility of evidence proving the oral agreement.
  • Whether the estate or beneficiaries reasonably relied on the agreement and whether partial performance took place.
  • Whether enforcing the oral agreement would contradict statutory distribution priorities or court-approved orders.

Illustrative hypothetical

Suppose a decedent dies, and family members orally agree that wrongful death settlement proceeds will be split three ways. The estate’s personal representative accepts the settlement and disburses funds to two family members but not the third. The third family member gathers text messages and a witness who heard the oral agreement, then files a petition in probate court asking the judge to (a) order an accounting of the settlement, (b) require the personal representative to pay the third member, and (c) surcharge the personal representative if they distributed funds without court approval. The court will weigh the evidence of the oral agreement, whether the personal representative acted within their powers, and any prior court approvals before deciding relief.

Helpful Hints — what to do next

  • Preserve all communications. Save texts, emails, voicemails, and notes about oral discussions.
  • Get the agreement in writing. If you reach a settlement or allocation, reduce it to a signed writing approved by the personal representative and, if appropriate, by the probate court.
  • Request the estate accounting early. Ask the personal representative for formal accountings and documentation of how wrongful death proceeds were handled.
  • Act quickly. Time limits and changing circumstances (distributions, bank closures) can complicate enforcement.
  • Consider mediation. Probate judges often encourage mediation to resolve family disputes quickly and reduce legal costs.
  • Talk to an Arizona probate or civil litigator. A lawyer can (a) review whether the oral agreement is likely enforceable, (b) prepare petitions or complaints, and (c) protect your statute-of-limitations rights.
  • Check local probate court rules. Rules and forms differ by county—visit the county probate clerk or the Arizona Judicial Branch website for local procedures.

If you want, I can outline the specific paperwork used to contest a distribution in your county probate court or give a sample list of evidence that strengthens an oral-agreement claim.

The information on this site is for general informational purposes only, may be outdated, and is not legal advice; do not rely on it without consulting your own attorney.