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A.R.S. § 14-3807

Payment of Claims Against an Arizona Estate

Verified April 4, 2026 • 57th Legislature, 1st Regular Session

Once the deadline for creditors to file claims has passed, the personal representative begins paying allowed claims in order of priority. Before paying creditors, the representative must first set aside funds for family protections like homestead allowance, exempt property, and family allowance.

Title 14, PROBATE OF WILLS AND ADMINISTRATION

azleg.gov

When Payment Begins

The personal representative cannot start paying creditors the moment claims arrive. Arizona law requires waiting until the claim filing deadline has expired. Only then does the representative proceed to pay allowed claims, and even then, certain obligations come first.

On the expiration of the earlier of the time limitations prescribed in section 14-3803 for the presentation of claims, the personal representative shall proceed to pay the claims allowed against the estate in the order of priority prescribed, after making provision for allowance in lieu of homestead, exempt property and family allowance, for claims already presented which have not yet been allowed or whose allowance has been appealed, and for unbarred claims which may yet be presented, including costs and expenses of administration.

A.R.S. § 14-3807(A)

Family protections take priority. The surviving spouse and dependent children are entitled to homestead allowance, exempt property, and family allowance before any creditor receives payment. The representative must also reserve funds for claims that are still being reviewed and for potential claims that have not yet been filed but are not yet barred.

Paying Claims Before the Deadline

A personal representative can pay a valid claim before the filing deadline expires, even without a formal presentation. But this flexibility comes with personal risk. If early payment leaves the estate unable to pay other creditors who filed on time, the personal representative may be personally liable for the shortfall.

The personal representative at any time may pay any just claim which has not been barred, with or without formal presentation, but the personal representative is personally liable to any other claimant whose claim is allowed and who is injured by such payment.

A.R.S. § 14-3807(B)

This is why careful estate administration matters. A personal representative who pays claims out of order or too early risks being held responsible out of their own pocket. Working with an experienced probate attorney helps avoid these costly mistakes.

A. On the expiration of the earlier of the time limitations prescribed in section 14-3803 for the presentation of claims, the personal representative shall proceed to pay the claims allowed against the estate in the order of priority prescribed, after making provision for allowance in lieu of homestead, exempt property and family allowance, for claims already presented which have not yet been allowed or whose allowance has been appealed, and for unbarred claims which may yet be presented, including costs and expenses of administration. By petition to the court in a proceeding for the purpose, or by appropriate motion if the administration is supervised, a claimant whose claim has been allowed but not paid as provided in this section may secure an order directing the personal representative to pay the claim to the extent that funds of the estate are available for the payment. B. The personal representative at any time may pay any just claim which has not been barred, with or without formal presentation, but the personal representative is personally liable to any other claimant whose claim is allowed and who is injured by such payment if either: 1. The payment was made before the expiration of the time limit stated in subsection A of this section and the personal representative failed to require the payee to give adequate security for the refund of any of the payment necessary to pay other claimants. 2. The payment was made, due to the negligence or wilful fault of the personal representative, in such manner as to deprive the injured claimant of the claimant's priority.
View on azleg.gov

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.

Related Questions

What is probate, and how long does it take in Arizona?

Probate is a court-supervised process that validates a will, pays debts, and distributes assets. In Arizona, it typically takes 8 to 12 months and costs $10,000 to $15,000 in fees.

How do probate attorney fees and retainers work in Arizona?

Probate attorneys in Arizona require a retainer of $1,000 to $5,000 or more upfront. The family pays out of pocket because estate assets are frozen until the court grants authority. Total probate costs typically run $10,000 to $15,000.

How can I prevent family conflict over my estate plan?

The most effective way to prevent conflict is to put your intentions in writing with clarity. Spell out who receives what, who manages the estate, and explain your reasoning if shares are unequal.

Related Statutes

§ 14-3101How Property Passes at Death Under Arizona Probate Law
§ 14-3102Why a Will Must Be Probated to Transfer Property in Arizona
§ 14-3103Why a Personal Representative Must Be Appointed in Arizona Probate
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