Skip to main content
Skip to explanation
A.R.S. § 14-3808

Personal Representative Liability

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

A personal representative is generally not personally liable for contracts entered on behalf of an estate. They must identify themselves as acting in a representative capacity. Personal liability only applies when the representative is personally at fault.

Title 14, PROBATE OF WILLS AND ADMINISTRATION

azleg.gov

Contracts Entered on Behalf of the Estate

Managing an estate often requires signing contracts. These may include hiring appraisers, listing real estate, or retaining contractors.

The personal representative is protected from individual liability on these contracts. However, they must follow one important rule.

Unless otherwise provided in the contract, a personal representative is not individually liable on a contract properly entered into in his fiduciary capacity in the course of administration of the estate unless he fails to reveal his representative capacity and identify the estate in the contract.

A.R.S. § 14-3808(A)

The key is disclosure. The representative must clearly state they are acting on behalf of the estate when signing any contract. Failing to do so can shift the obligation to them personally.

Torts and Ownership Obligations

The personal representative may also face claims tied to estate property. For example, a tenant might get injured on estate-owned rental property.

The question of liability depends on personal fault. Without personal fault, these claims fall against the estate itself.

A personal representative is individually liable for obligations arising from ownership or control of the estate or for torts committed in the course of administration of the estate only if he is personally at fault.

A.R.S. § 14-3808(B)

However, if the representative's own negligence causes the harm, they can be held individually responsible. A court accounting or surcharge proceeding can resolve these disputes.

A. Unless otherwise provided in the contract, a personal representative is not individually liable on a contract properly entered into in his fiduciary capacity in the course of administration of the estate unless he fails to reveal his representative capacity and identify the estate in the contract. B. A personal representative is individually liable for obligations arising from ownership or control of the estate or for torts committed in the course of administration of the estate only if he is personally at fault. C. Claims based on contracts entered into by a personal representative in his fiduciary capacity, on obligations arising from ownership or control of the estate, or on torts committed in the course of estate administration may be asserted against the estate by proceeding against the personal representative in his fiduciary capacity, whether or not the personal representative is individually liable therefor. D. Issues of liability as between the estate and the personal representative individually may be determined in a proceeding for accounting, surcharge or indemnification or other appropriate proceeding.

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.

Get Started Today

Need Help With Your Estate Plan?

Whether you are just getting started or reviewing an existing plan, RJP Estate Planning works hand in hand with experienced estate planning counsel to help you understand your options.

(480) 346-3570