Good Faith Protection for Personal Representatives
Estate administration sometimes involves courtroom disputes. A beneficiary might challenge the will. A creditor might file a claim. A third party might assert rights to real property or other estate assets. In probate cases like these, the personal representative must respond. When they do so in good faith, the estate covers the cost.
If any personal representative or person nominated as personal representative defends or prosecutes any proceeding in good faith, whether successful or not he is entitled to receive from the estate his necessary expenses and disbursements including reasonable attorneys' fees incurred.
A.R.S. § 14-3720The key phrase is "in good faith." The personal representative does not have to win. They simply need to have acted reasonably and with honest intentions. If a creditor files an inflated claim and the representative fights it, the estate pays for that defense. This is true even if the court ultimately sides with the creditor.
Why This Matters for People Considering the Role
Without this protection, few people would agree to serve as personal representative. The risk of paying thousands in legal fees out of pocket would make the role too burdensome. Court filing fees alone can add up in contested matters. When you factor in what attorneys charge per hour, the size and complexity of the estate can drive costs even higher. Fees in Arizona for contested probate cases vary widely depending on the issues involved.
This statute removes that barrier by making sure the estate absorbs litigation costs incurred in good faith.
How Litigation Costs Affect the Family
The protection also extends to someone merely nominated as personal representative who has not yet been formally appointed. If they face legal proceedings related to the estate during that interim period, they can still seek reimbursement.
For family members waiting to receive their inheritance, estate litigation means delays and reduced assets. Legal fees come out of the estate before distributions are made. The more complex the dispute, the less there may be left to distribute. Understanding how the complexity of the estate affects potential costs can help families plan ahead.
Keeping good records and communicating openly with beneficiaries can reduce the likelihood of disputes. When disagreements do arise, resolving them early often costs less than a full court proceeding.