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A.R.S. § 14-3806

Allowance of Claims in Probate

Verified April 4, 202657th Legislature, 1st Regular Session

When a creditor files a claim, the personal representative decides whether to allow or disallow it. If disallowed, the creditor has 60 days to challenge the decision in court. If the representative takes no action within 60 days after the filing deadline, the claim is treated as allowed.

Title 14, PROBATE OF WILLS AND ADMINISTRATION

azleg.gov

How the Personal Representative Reviews Claims

The personal representative has real authority here. After a creditor submits a claim within the required time limits, the representative reviews it. They then decide whether to allow or disallow it, in whole or in part.

Creditor claims must be evaluated carefully against estate records. If the claim is disallowed, the personal representative mails a notice of disallowance. That notice starts a 60-day clock.

Every claim which is disallowed in whole or in part by the personal representative is barred so far as not allowed unless the claimant files a petition for allowance in the court or commences a proceeding against the personal representative not later than sixty days after the mailing of the notice of disallowance or partial allowance.

A.R.S. § 14-3806(A)

If the creditor misses that 60-day window, the disallowed portion is barred for good. The representative may also do nothing for 60 days after the claim deadline. In that case, silence counts as approval.

Changing Course and Community Property

The representative can change course before paying a claim. Within six months of its presentation, they may rescind a prior allowance. They must then notify the creditor of the change.

Once a court has ordered the claim paid, the allowance cannot be undone.

Unless otherwise provided in any judgment in another court entered against the personal representative, allowed claims bear interest at the legal rate for the period commencing sixty days after the time for original presentation of the claim has expired unless based on a contract making a provision for interest, in which case they bear interest in accordance with that provision.

A.R.S. § 14-3806(E)

For estates involving community property, the representative may classify a claim as payable from community property or separate property. That classification itself counts as a partial disallowance. As a result, it gives the creditor the right to challenge it.

A. As to claims presented in the manner described in section 14-3804 within the time limit prescribed in section 14-3803, the personal representative may mail a notice to any claimant stating that the claim has been disallowed. Every claim which is disallowed in whole or in part by the personal representative is barred so far as not allowed unless the claimant files a petition for allowance in the court or commences a proceeding against the personal representative not later than sixty days after the mailing of the notice of disallowance or partial allowance. Failure of the personal representative to mail notice to a claimant of action on his claim for sixty days after the time for original presentation of the claim has expired has the effect of a notice of allowance. The personal representative of the estate of a deceased spouse may classify a claim as a community claim payable out of community property, or as a separate claim payable out of separate property and the balance of the decedent's half of community property. Either classification constitutes a disallowance in part; failure to give notice of the classification to the claimant as provided in this subsection, or failure to classify an allowed claim, has the effect of allowing the claim as payable out of either separate or community property, whichever is more beneficial to the claimant. B. The personal representative may at any time prior to payment, but not later than six months after presentation of the claim, rescind the allowance of a claim and notify the claimant of the change to a disallowance in whole or in part. The disallowed claim is then subject to bar as provided in subsection A. After allowance of a claim by a court order or judgment, or entry of an order directing payment of an allowed claim, the allowance may not be rescinded by the personal representative. After disallowing a claim, the personal representative may change the disallowance to an allowance prior to expi...

This page provides general legal information about Arizona statutes and is not legal advice. For guidance on how this law applies to your situation, speak with a qualified attorney.

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