What Counts as an Advancement in Arizona
Parents often help their children financially during their lifetime. A down payment on a house, a cash gift for a business, or property transferred early. The question is whether those gifts should reduce what the child receives from the estate after the parent dies.
In Arizona, the answer depends entirely on documentation. A lifetime gift is only treated as an advancement against an heir's intestate share if there is written proof.
Property the decedent gave during the decedent's lifetime to a person who, at the decedent's death, is an heir is treated as an advancement against the heir's intestate share only if the decedent declared in a contemporaneous writing or the heir acknowledged in writing that the gift is an advancement.
A.R.S. § 14-2109(A)Without that written declaration, the gift is simply a gift. It does not reduce the heir's share of the estate.
Valuation and What Happens If the Heir Dies First
When a gift does qualify as an advancement, it is valued at the time the heir received it or the time of the parent's death, whichever comes first. This prevents inflation or market changes from distorting the calculation.
If the heir who received the advancement dies before the parent, the gift is not counted against that heir's descendants unless the parent's writing specifically says otherwise. This protects grandchildren from being penalized for a gift their parent received.
For families where one child received significant help during the parent's lifetime, having a clear written record prevents disputes. A properly drafted estate plan can address these situations directly, making the parent's intentions unmistakable.
