Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a qualified Arizona probate attorney for guidance on your specific situation.
Detailed Answer
When an executor in Arizona receives a creditor’s settlement demand, they must assemble comprehensive records that verify estate assets, liabilities, and the claim itself. Gathering complete documentation ensures compliance with Arizona’s probate statutes and helps negotiate or contest the demand.
Key documents include:
- Letters Testamentary or Letters of Administration: Official court-issued proof of your authority as executor. See A.R.S. §14-3501 (ars/14/003501.htm).
- Death Certificate: Certified copy to confirm decedent’s date of death for all claim deadlines.
- Notice to Creditors Publication: Proof you published notice in a local newspaper within one month of appointment under A.R.S. §14-3804 (ars/14/003804.htm).
- Creditor Claim Form and Supporting Evidence: The written claim or demand letter, invoices, statements, promissory notes, medical bills, or other documentation showing the nature and amount of the debt.
- Estate Inventory and Appraisement: Detailed list and fair-market valuations of all estate assets filed under A.R.S. §14-3503 (ars/14/003503.htm).
- Asset and Liability Schedules: Up-to-date bank statements, brokerage account records, real estate deeds, vehicle titles, loan agreements, credit card statements, and mortgage statements.
- Payment Records: Receipts or checks showing payments made to valid creditors to date. These help determine whether the claim remains unpaid within Arizona’s four-month claim period (A.R.S. §14-3806, ars/14/003806.htm).
- Insurance Policies and Beneficiary Designations: Declarations pages for life, auto, homeowners, or liability policies that may cover estate liabilities.
- Final Income Tax Returns and Related Documents: Federal and state returns of the decedent and the estate, W-2s, 1099s, and supporting schedules.
- Funeral and Last Illness Expenses: Receipts or statements for funeral home services, cemetery costs, medical providers, and hospice care.
After gathering these materials, compare the claim amount to your records. If you dispute the demand, prepare a written response explaining why the claim is invalid or partially incorrect. If the demand is valid, you may negotiate a reduced settlement or propose a payment plan. Always file a formal allowance or denial of the claim with the court before the four-month deadline.
Helpful Hints
- Organize documents chronologically and by category to speed up review.
- Check each asset’s title and beneficiary designations for discrepancies.
- Verify publication dates to confirm the four-month deadline (A.R.S. §14-3806).
- Consult your probate file regularly for updates on court rulings or requests.
- Keep copies of all correspondence with creditors, including emails and certified mail receipts.
- Use a spreadsheet to track claim amounts, due dates, and payment status.
- Work closely with your estate attorney to ensure compliance with Arizona probate rules.