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Probate is a legal proceeding by which a deceased person's affairs are settled.At this time, all property is accounted for, debts are paid, and all remaining property is distributed to the rightful heirs. The term probate means "to prove the will" through a proceeding that usually occurs in court. In the event that a will does not exist or is not available, there are state laws to deal with the orderly distribution of assets to those who are entitled to inherit them. The probate process can be long, daunting, expensive and at times overwhelming. Yet probate can be concluded responsibly and efficiently given the right options. The information contained on this page is meant to give you an overview of the process and is not legal advice.
What is Involved in Settling an Estate?
A Notice of Petition to Administer Estate is filed with the court and the court appoints a Personal Representative (Executor / Executrix) to administer the Probate of the decedent's estate. This process involves accounting for the assets, liabilities and taxes. The decedent's property is said to be owned by the "estate" of the deceased person and must remain so until the judge or other court-appointed person says it may be distributed. It is often necessary to sell property to satisfy estate debts and close probate.
The timing for the entire probate process will differ depending upon the size and complexity of the estate. The minimum time an estate will likely be open is probably from six months to a year, and is often open longer for medium to large estates.
Duties & Liabilities of Personal Representative
When the court appoints you as Personal Representative of an Estate, you become an officer of the court and assume certain duties and obligations. Below you will find a general list of the Personal Representative's responsibilities in Maricopa County, Arizona. The list is not exhaustive and this site does not provide legal advice. An attorney is often sought to advise on these matters and you may wish to have a probate attorney review your case. At a minimum, you should understand the following:
Managing the Estate's Assets- Prudent investments. You must manage the estate assets with the care of a prudent person who is dealing with someone else's property. This means that you must be cautious and may not make any speculative investments.
- Keep estate assets separate. You must keep the money and property in this estate separate from anyone else's, including your own. When you open a bank account for the estate, the account name must indicate that it is an estate account and not your personal account.
Never deposit estate funds in your personal account or otherwise mix them with your or anyone else's property. Securities in the estate must also be held in a name that shows they are estate property and not your personal property. - Interest-bearing accounts and other investments. Except for checking accounts intended for ordinary administration expenses, estate accounts must earn interest.
You may deposit estate funds in insured accounts in financial institutions, but you should consult with an attorney before making other kinds of investments. - Other restrictions. There are many other restrictions on your authority to deal with estate property. You should not spend any of the estate's money unless you have received permission from the court or have been advised to do so by an attorney. You may reimburse yourself for official court costs paid by you to the county clerk and for the premium on your bond. Without prior order of the court, you may not pay fees to yourself or to your attorney, if you have one.
If you do not obtain the court's permission when it is required, you may be removed as personal representative or you may be required to reimburse the estate from your own personal funds, or both. You should consult with an attorney concerning the legal requirements affecting sales, leases, mortgages, and investments of estate property. - Inventory of Estate Property
- Locate the estate's property. You must attempt to locate and take possession of all the decedent's property to be administered in the estate.
- Determine the value of the property. This can be done yourself or you can consult a professional to assist you.
- File an inventory and appraisal. Within four months after letters are first issued to you as personal representative, you must file with the court an inventory and appraisal of all the assets in the estate.
- Notice to Creditors
You must mail a notice of administration to each known creditor of the decedent within four months after your appointment as Personal Representative. - Insurance
You should determine that there is appropriate and adequate insurance covering the assets and risks of the estate. Maintain the insurance during the entire period of the administration. - Record Keeping
- Keep accounts. You must keep complete and accurate records of each financial transaction affecting the estate. You will have to prepare an account of all money and property you have received, your expenses, and the date of each transaction. You must describe in detail the remainder after the payment of expenses.
- Court review. Your account will be reviewed by the court. Save your receipts because the court may ask to review them. If you do not file your accounts as required, the court will order you to do so. You may be removed as Personal Representative if you fail to comply.
