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A.R.S. § 14-3807

Payment of Estate Claims

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

Once the deadline for creditors claims passes, the personal representative begins paying allowed claims in order of priority. Family protections like homestead allowance and exempt property must be set aside first. Early payments carry personal risk.

Title 14, PROBATE OF WILLS AND ADMINISTRATION

azleg.gov

When Payment Begins

The personal representative cannot start paying creditor claims the moment they arrive. The law requires waiting until the claim filing deadline has expired.

Only then does the representative proceed to pay allowed claims. Certain obligations come first, including debts and taxes that must be settled in order.

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 receive homestead allowance, exempt property, and family allowance. These must be set aside before any creditor gets paid.

The representative must also reserve funds for claims still being reviewed. This means potential claims not yet filed are also considered.

Paying Claims Before the Deadline

A personal representative can pay a valid claim before the filing deadline expires. They can do this even without a formal presentation. But this flexibility comes with personal risk.

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)

Early payment may leave the estate unable to pay other creditors who filed on time. As a result, the personal representative may be personally liable.

A representative who pays claims out of order or too early risks personal responsibility. Common claims like credit card debt and funeral expenses should still follow the priority rules.

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.

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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