Good Faith Protection for Personal Representatives
Estate administration sometimes involves courtroom disputes. A beneficiary might challenge the will, a creditor might file a claim, or a third party might assert rights to estate property. When a personal representative defends or pursues one of these proceedings 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 personal representative fights it, the estate pays for that defense 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 far too burdensome. This statute removes that barrier by ensuring the estate absorbs litigation costs incurred in good faith.
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. This ensures that the nomination process itself does not expose someone to unrecoverable costs.