Disclaimer: This article is for informational purposes only and does not constitute legal advice.
Detailed Answer
In Arizona, the personal representative (formerly called the executor) manages estate expenses and ongoing bills during probate. After the court appoints the representative, they collect assets, notify creditors, and pay valid debts using estate funds. Under ARS §14-3708, the representative may use estate assets to cover administration costs, funeral expenses, taxes, and creditor claims. See ARS §14-3708: Payment of expenses of administration.
Key steps include:
- Inventory and valuation. File a complete inventory with the probate court and determine which assets are liquid. (ARS §14-3708)
- Creditor notice. Publish or mail notice to known creditors to limit unexpected claims. See ARS §14-3801: Presentation of claims.
- Prioritize payments. Pay funeral costs, administration fees, and taxes first. Then address secured debts (e.g., mortgage) and unsecured debts.
- Use estate bank accounts. Deposit estate funds in a separate account to pay ongoing bills like utilities, insurance, and property taxes.
- Sell assets if needed. If cash is insufficient, request court approval to sell real or personal property under ARS §14-3708.
The representative must act in good faith, maintain accurate records, and obtain court orders before significant transactions. Failure to comply can result in personal liability and delays.
Helpful Hints
- File creditor notices within 30 days to limit claims.
- Maintain a dedicated estate bank account for all receipts and disbursements.
- Keep detailed payment records and retain all receipts.
- Secure court approval before selling estate property.
- Consult a probate attorney for complex estates or creditor disputes.