What Does a Personal Representative Do in Arizona?

When Does Someone Become the Personal Representative?

Being named in a will does not, by itself, make someone the acting personal representative.

Suppose Dad's will says:

“I nominate my daughter, Sarah, to serve as personal representative.”

Dad dies.

Sarah has been nominated for the position, but that does not necessarily mean she can immediately walk into Dad's bank, withdraw the estate's money, sign a deed selling his house, and begin distributing assets.

The probate court generally must appoint the personal representative.

Once appointed, the court issues evidence of that authority, commonly called Letters of Personal Representative.

Those Letters are what banks, title companies, financial institutions, and other third parties may ask to see before recognizing the personal representative's authority.

When Do the Personal Representative's Powers Begin?

Arizona law generally provides that the personal representative's duties and powers begin upon appointment.

There is an important qualification.

Certain beneficial acts performed before appointment can potentially be given effect after the person is appointed, and an appointed personal representative can sometimes ratify appropriate acts performed on behalf of the estate.

A person named as personal representative in a will may also carry out the deceased person's written instructions concerning the body, funeral, and burial before appointment.

But the safest general rule for families is:

Do not assume that being named in the will gives you full authority over the estate before you are appointed.

What Is the Personal Representative's Most Important Duty?

The personal representative is a fiduciary.

That means the personal representative is administering property for the benefit of other people and must comply with legal duties that go beyond the personal representative's own interests.

Arizona law requires the personal representative to settle and distribute the estate according to the effective will, when there is one, and Arizona law.

The personal representative is also expected to administer the estate as efficiently and expeditiously as is consistent with the estate's best interests.

That means the personal representative should not unnecessarily delay the probate.

But it also means the personal representative should not rush distributions merely because beneficiaries want their money.

The job is to administer the estate correctly and efficiently.

Does the Personal Representative Work for the Beneficiaries?

Not exactly.

The personal representative has fiduciary obligations in administering the estate, but the personal representative is not simply an employee of the beneficiaries.

A beneficiary cannot necessarily order the personal representative to:

Sell the house

Keep the house

Pay a particular creditor

Make an immediate distribution

or

Take some other action simply because the beneficiary wants it.

At the same time, the personal representative cannot ignore the beneficiaries' legal rights.

The personal representative has to administer the estate according to the will, Arizona law, creditor rights, and the rights of other interested persons.

Does the Personal Representative Have to Follow the Will?

Yes, if there is a valid will that has been admitted to probate.

The personal representative does not get to rewrite the estate plan.

Suppose Mom's will leaves:

50% to her son

and

50% to her daughter.

The daughter serves as personal representative.

The daughter cannot decide that she deserves 75% because she did more work for Mom during Mom's lifetime.

Serving as personal representative gives the daughter authority to administer the estate.

It does not give her authority to change Mom's beneficiaries.

If compensation for serving as personal representative is appropriate, that is a separate issue from inheritance.

What If There Is No Will?

Then the personal representative administers the probate estate according to Arizona's intestacy laws.

The personal representative still does not decide who should inherit.

Arizona law does.

For example, the personal representative cannot give the house to the child who “needs it most” if Arizona's intestacy statutes provide that several heirs are entitled to the estate.

The personal representative administers the law.

The personal representative does not create a new estate plan for the person who died.

Does the Personal Representative Own the Estate Property?

No.

This is a critical distinction.

Arizona gives a personal representative very substantial power over estate property.

But that power is held in trust for creditors and others interested in the estate.

The personal representative may have authority resembling that of an owner for purposes of administering estate property, but the personal representative does not become the beneficial owner simply because of the appointment.

If Dad owned a $500,000 house, appointment as personal representative does not mean the house suddenly belongs to you.

You have authority and responsibility concerning the asset because you are administering Dad's estate.

What Should the Personal Representative Do First?

The exact order depends on the estate, but early priorities often include:

Locate the original will and estate-planning documents

Obtain certified death certificates

Identify probate and nonprobate assets

Secure estate property

Determine whether real estate is insured

Identify bank and investment accounts

Determine whether mortgage and other critical payments are current

Identify heirs and beneficiaries

Locate important financial records

and

Begin identifying debts and creditors.

If a house is vacant, protecting that property may be much more urgent than sorting through every old bill.

If someone is already removing estate property, that may require immediate attention.

Every estate has its own priorities.

Does the Personal Representative Have to Notify the Family?

Arizona imposes specific notice obligations.

Generally, no later than 30 days after appointment, a personal representative must provide information concerning the appointment to heirs and devisees whose addresses are reasonably available, subject to statutory exceptions.

The notice includes information such as the personal representative's name and address, the court where the estate proceeding is pending, and whether a bond has been filed.

This notice requirement is separate from simply telling your siblings:

“The court appointed me.”

Probate has formal notice requirements that should be followed.

Does the Personal Representative Have to Prepare an Inventory?

Yes, in an ordinary probate administration.

Generally, within 90 days after appointment, the personal representative must prepare an inventory of property owned by the deceased person at death.

The inventory identifies estate property with reasonable detail and generally includes:

The property's fair market value as of the date of death

Whether the property is community or separate property

and

The type and amount of any encumbrance affecting the property.

For example, an inventory might include:

Bank account — $42,000

Vehicle — $18,000

Arizona residence — $475,000, subject to mortgage

and other estate assets.

The inventory is an important part of understanding what the estate actually contains.

Does the Inventory Have to Be Filed With the Court?

Not necessarily.

Arizona provides alternatives concerning the inventory.

The personal representative may file the original inventory with the court and provide it to interested persons who request it.

Alternatively, the personal representative may elect not to file the inventory with the court and instead provide copies as required by statute to the heirs or devisees and other interested persons who request it.

The important point is that choosing not to file the inventory publicly does not mean the personal representative can simply skip preparing it.

What If We Find Another Asset Later?

That happens frequently.

Maybe the family discovers:

Another bank account

A forgotten investment account

Mineral rights

A vehicle

A refund

or some other asset after the original inventory was prepared.

Arizona law provides for a supplementary inventory when additional estate property is discovered or when information in the original inventory turns out to be erroneous or misleading.

Probate administration should adjust when new information is discovered.

Does the Personal Representative Have to Get an Appraisal?

Not for every asset.

Some values are relatively easy to establish.

A bank account has a date-of-death balance.

Publicly traded securities generally have readily ascertainable values.

Other assets may be more difficult.

Arizona law allows a personal representative to employ a qualified and disinterested appraiser when the fair market value of an asset is reasonably in doubt.

Real estate, businesses, collectibles, jewelry, unusual vehicles, and other assets may require professional valuation depending on the circumstances.

Is the Personal Representative Responsible for the House?

If the house is estate property under the personal representative's control, protecting it can be one of the most important responsibilities in the probate.

Arizona law requires the personal representative to take reasonably necessary steps to manage, protect, and preserve estate property in the personal representative's possession.

That can include dealing with:

Insurance

Mortgage payments

Property taxes

Utilities

HOA obligations

Necessary repairs

Security

Occupants

and

Maintenance.

A personal representative should not allow a valuable house to become uninsured or suffer preventable damage simply because probate is pending.

Can the Personal Representative Take Possession of Estate Property?

Arizona law gives the personal representative significant rights concerning possession and control of estate property.

Real property and tangible personal property may sometimes remain with the person who is presumptively entitled to it.

But if the personal representative determines possession is necessary for estate administration, the personal representative can request delivery of the property.

This can become important when a family member has:

The deceased person's vehicle

Jewelry

Financial records

Valuable personal property

or

Possession of the house.

Being a beneficiary does not necessarily give someone the right to prevent the personal representative from obtaining estate property needed for administration.

What If Someone Took Dad's Property?

The personal representative may have authority to recover estate property.

Suppose Dad dies and, before probate is opened, one child removes:

Dad's vehicle

Firearms

Jewelry

Cash

and

Other valuable property.

The fact that the person is Dad's child does not necessarily make those assets that child's property.

The personal representative may need to determine whether the property belongs to the estate and, if necessary, seek its return.

Arizona law provides procedures that can be used when estate property is believed to have been concealed, embezzled, conveyed, disposed of, or improperly retained.

Does the Personal Representative Handle Creditors?

Yes.

Creditor administration is one of the personal representative's important responsibilities.

The personal representative may need to:

Identify known creditors

Publish notice to creditors

Provide appropriate notice to known creditors

Review claims

Determine whether claims should be allowed or disallowed

and

Pay valid claims according to Arizona law.

The personal representative should not simply pay every bill that arrives.

Some claims may be untimely.

Some may be invalid.

And if the estate does not have enough money to pay everyone, Arizona law establishes priorities among different categories of claims.

Should the Personal Representative Pay Dad's Credit Cards Immediately?

Usually, there is no reason to panic and start paying ordinary unsecured debts before understanding the estate.

The personal representative should first determine:

What assets exist

What expenses of administration will be required

What creditor claims exist

Whether the estate is solvent

and

What statutory priorities apply.

Arizona gives costs and expenses of administration higher priority than ordinary unsecured claims such as typical credit-card debt.

Paying creditors in the wrong order can create problems.

Does the Personal Representative Have to Pay the Beneficiaries Immediately?

No.

Beneficiaries understandably want to know:

“When do I get my inheritance?”

But appointment of the personal representative does not mean the estate should immediately be emptied.

Before final distributions, the personal representative may need to address:

Creditor periods

Estate expenses

Taxes

Real-estate issues

Disputed claims

Reserves

and

Other administration obligations.

A personal representative who distributes too much money too early can create a serious problem if the estate later needs those funds.

Can the Personal Representative Make Partial Distributions?

Potentially.

An estate does not always have to remain completely undistributed until the final day of probate.

When the personal representative has enough information to determine that certain funds or property can safely be distributed while maintaining an appropriate reserve for remaining obligations, partial distributions may sometimes be appropriate.

But this is a judgment call.

The personal representative should not make an early distribution merely because a beneficiary is pressuring the estate for money.

Can the Personal Representative Sell Estate Property?

Arizona gives personal representatives broad authority to administer estate assets, subject to the will, applicable law, fiduciary obligations, and any court restrictions.

Depending on the circumstances, a personal representative may have authority to:

Sell real estate

Sell personal property

Manage assets

Make repairs

Lease property

Invest estate funds

Compromise certain obligations

Employ attorneys, accountants, appraisers, and other professionals

and

Take other actions reasonably necessary for administration.

In an unsupervised probate, the personal representative generally does not have to return to court for permission for every ordinary act of administration.

But broad power does not eliminate fiduciary responsibility.

Does the Personal Representative Need the Beneficiaries' Permission to Sell Something?

Not necessarily.

Beneficiaries do not automatically have a veto over every administrative decision.

For example, if selling an estate asset is appropriate and within the personal representative's authority, unanimous beneficiary consent may not be required merely because the beneficiaries would prefer something else.

But the will matters.

The nature of the asset matters.

The beneficiaries' legal rights matter.

And the personal representative must act as a fiduciary.

This becomes particularly important with real estate, which we discuss separately in our Arizona probate guide concerning the sale of estate property.

Can the Personal Representative Hire a Lawyer?

Yes.

Arizona law expressly permits a personal representative, acting appropriately for the estate, to employ professionals such as:

Attorneys

Accountants

Auditors

Investment advisers

Appraisers

and

Other agents

to assist with administration.

Being appointed personal representative does not mean you are expected to personally know probate law, prepare tax returns, value unusual assets, sell real estate, and resolve every legal dispute without professional assistance.

The personal representative's responsibility includes knowing when professional assistance is appropriate.

Who Pays the Personal Representative's Lawyer?

When legal services are appropriately incurred for administration of the estate, attorney fees are generally an estate administration expense rather than automatically the personal representative's personal expense.

That does not mean the estate pays for every legal dispute a personal representative might choose to pursue.

The nature of the legal work, the personal representative's conduct, good faith, and applicable Arizona law can matter.

But ordinary legal assistance necessary to properly administer the probate is generally an expense of estate administration.

Can the Personal Representative Get Paid?

Yes.

Arizona law provides that a personal representative is entitled to reasonable compensation for services.

There is no automatic percentage that every Arizona personal representative receives.

Some personal representatives take compensation.

Some waive it.

If compensation is paid, it must be reasonable, and interested persons may have the ability to ask the court to review its reasonableness.

The personal representative should keep good records of substantial work performed on behalf of the estate.

Does the Personal Representative Have to Keep Records?

Absolutely.

Good recordkeeping is one of the best ways to avoid probate disputes.

The personal representative should be able to document estate transactions such as:

Money received

Bills paid

Property sold

Professional fees

Reimbursements

Mortgage and property expenses

Creditor payments

Distributions

and

Other significant estate transactions.

Estate money should be treated as estate money.

Mixing estate funds with personal funds is an invitation to disputes and accounting problems.

Should the Personal Representative Open an Estate Bank Account?

In many probate estates, yes.

Once the personal representative has the necessary authority and tax identification information, an estate account can provide a clean way to receive estate funds and pay estate expenses.

For example:

Dad's individually owned bank account may be transferred into the estate account.

Proceeds from selling Dad's vehicle may go into the estate account.

The net proceeds from selling estate real property may go into the estate account.

Estate bills can then be paid from the estate account.

This creates a much cleaner financial record than running estate money through the personal representative's personal checking account.

Can the Personal Representative Use Estate Money Personally and Pay It Back Later?

That is a bad practice and can create serious fiduciary issues.

Estate money is not a temporary personal line of credit.

The personal representative should maintain a clear separation between estate assets and personal assets.

If the personal representative is entitled to reimbursement or compensation, it should be properly documented and handled as an estate transaction.

Can the Personal Representative Buy Estate Property?

This requires special caution.

Transactions involving the personal representative personally acquiring estate property can create conflicts of interest.

Even if the personal representative believes the transaction is fair, interested beneficiaries may later claim that the personal representative used fiduciary authority for personal advantage.

Self-interested transactions should be evaluated carefully before they occur.

The fact that the personal representative has authority to sell estate property does not mean the personal representative should simply sell the best asset to himself or herself on whatever terms the personal representative chooses.

Can a Personal Representative Be Personally Liable?

Yes, in some circumstances.

A personal representative is not automatically personally responsible for every estate obligation merely because of the appointment.

For example, Arizona law generally protects a personal representative from individual liability on a contract properly entered into in a fiduciary capacity when the representative capacity and estate are properly disclosed.

But personal liability can arise from the personal representative's own conduct.

Arizona law provides that a personal representative can be liable to interested persons for damage or loss resulting from a breach of fiduciary duty.

Personal fault can also matter for certain obligations or torts arising during administration.

The safest approach is to remember:

Authority and responsibility come together.

What Are Examples of Mistakes That Can Create Problems?

Potential problems include:

Distributing the estate too early

Paying creditors without considering statutory priority

Allowing estate property to become uninsured

Failing to protect a vacant house

Using estate money for personal purposes

Selling estate property to yourself on questionable terms

Ignoring beneficiaries entirely

Failing to maintain financial records

Taking estate property without accounting for it

Making distributions inconsistent with the will or intestacy law

and

Allowing the probate to sit unnecessarily for long periods without administration.

Not every mistake creates personal liability.

But the personal representative's fiduciary role should be taken seriously.

Does the Personal Representative Need Court Permission for Everything?

Usually not in an unsupervised Arizona probate.

Arizona's probate system generally allows a personal representative to proceed with estate administration without obtaining a separate court order for every decision, unless the estate is under supervised administration, the will or law imposes a restriction, or a court order requires otherwise.

That flexibility can make Arizona probate much more efficient.

But it also places substantial responsibility on the personal representative.

The absence of constant court supervision does not mean there are no rules.

Can the Personal Representative Ask the Court for Help?

Yes.

Even though an unsupervised personal representative ordinarily administers the estate without asking the judge to approve every act, Arizona law allows the personal representative to invoke the court's jurisdiction when an issue concerning the estate or its administration needs to be resolved.

That may become important when there is a genuine legal dispute concerning:

Ownership of property

Interpretation of the will

Creditor claims

Beneficiary rights

Sale or distribution issues

or other administration questions.

Can a Personal Representative Be Removed?

Potentially.

Appointment does not give someone an unconditional right to remain personal representative regardless of conduct.

Serious fiduciary breaches, failure to administer the estate, conflicts, mismanagement, or other statutory grounds can lead an interested person to seek court intervention and potentially removal.

Family disagreement alone does not necessarily mean removal is appropriate.

But a personal representative who treats estate property as personal property or refuses to perform the job can create substantial legal problems.

Is Being Personal Representative Just an Honorary Position?

No.

Sometimes a parent names the oldest child because it seems natural.

But serving as personal representative can involve substantial responsibility.

You may be responsible for administering hundreds of thousands—or millions—of dollars of someone else's property.

You may need to make decisions that your siblings dislike.

You may need to tell a beneficiary that an immediate distribution is not appropriate.

You may need to sell property.

You may need to reject a creditor claim.

You may need to recover property from a family member.

And throughout the process, you must act as a fiduciary rather than simply as another beneficiary.

What If I Don't Want to Serve?

Being nominated in a will does not mean you must accept the position.

If you do not want the responsibility, another qualified person may potentially serve.

It is often better to recognize at the beginning that you do not want the job than to accept appointment and then fail to administer the estate.

What Should I Do If I Have Just Been Appointed?

A useful starting checklist is:

Read the will carefully.

Understand who the heirs and beneficiaries are.

Identify and secure estate assets.

Protect real estate and maintain insurance.

Create a system for estate records.

Establish an estate bank account when appropriate.

Calendar the 30-day notice requirement.

Calendar the 90-day inventory requirement.

Begin the creditor-notice process.

Identify tax and accounting needs.

Do not make premature distributions.

and

Ask for professional assistance when an issue is outside your experience.

The Personal Representative Has Authority—But Also Responsibility

An Arizona personal representative can have broad authority over estate property.

That authority exists so the personal representative can efficiently settle the deceased person's affairs, protect estate property, address creditors, and ultimately transfer the remaining estate to the people legally entitled to receive it.

It is not authority to treat the estate as personal property.

The best personal representatives understand both sides of the job:

They have the power to act.

And they have a fiduciary duty to act properly.

The Law Offices of Jeffrey D. Lynch helps Arizona personal representatives understand their responsibilities, administer probate estates efficiently, address difficult estate issues, and move the estate toward proper distribution and closing.

This page provides general information about Arizona probate law and is not legal advice. A personal representative's duties and authority can be affected by the will, the type of probate proceeding, court orders, estate assets, creditor issues, beneficiary disputes, and the particular circumstances of the estate.