Broad Authority with Two Hard Limits
Supervised administration does not strip the personal representative of authority over the decedent's estate. They keep all the powers that any personal representative holds during the probate process. They can pay bills, manage investments, collect debts owed to the estate, and handle routine business. The court does not need to approve every action.
Unless restricted by the court, a supervised personal representative has, without interim orders approving exercise of a power, all powers of personal representatives under this title, but all sales of real property shall be subject to court confirmation and the personal representative shall not exercise his power to make any distribution of the estate without prior order of the court.
A.R.S. § 14-3504The two exceptions matter most to interested parties. First, any distribution to beneficiaries or heirs requires a court order. The personal representative cannot hand over assets based on their own judgment alone. Second, real estate sales must go through court confirmation. This gives the court a chance to review whether the sale price and terms serve the interest of the estate.
Additional Restrictions Must Be on the Record
The court can impose limits beyond the two defaults. It might restrict the personal representative from selling certain assets, borrowing against estate property, or taking other specific actions. But there is a safeguard built in. Any extra restriction must be endorsed on the letters of appointment.
If a restriction is not written on the letters, it has no effect against third parties who deal with the personal representative in good faith. Banks, title companies, and other institutions can rely on what the letters say. This protects both the decedent's estate and the people doing business with it. The personal representative must also continue to file estate tax returns and meet all other obligations during the supervised period.