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A.R.S. § 14-3815

Multi-State Estate Administration Duties

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

When an estate is managed in Arizona and at least one other state, all Arizona-based assets stay open to valid claims and charges. Creditors with allowed claims receive equal payment across all states.

Title 14, PROBATE OF WILLS AND ADMINISTRATION

azleg.gov

Why Multi-State Estates Get Complicated

People who own property in more than one state often trigger separate estate proceedings in each location. Arizona calls this ancillary probate. As a result, the personal representative must make sure creditors are treated fairly across state lines.

All assets of estates being administered in this state are subject to all claims, allowances and charges existing or established against the personal representative wherever appointed.

A.R.S. § 14-3815(A)

This means Arizona probate assets are not sheltered from debts recognized in another state. A creditor with an allowed claim in any state can reach the Arizona portion of the estate.

Equal Treatment Across States

When the total estate is not large enough to pay everyone in full, state law requires proportional payment. Every creditor with an allowed claim receives an equal share of what they are owed. It does not matter whether the claim was allowed in Arizona or elsewhere.

The law includes a check for creditors who hold preferences or security interests in other states. Those creditors must first apply their out-of-state advantage before collecting from Arizona assets. This prevents double-dipping from the Arizona portion.

Practical Impact on Families

For family members dealing with property in multiple states, the probate process can feel overwhelming. The personal representative must manage the estate in each state.

This may include collecting estate assets and paying debts and taxes. It may also include filing tax returns and distributing assets to heirs.

A bank account in one state and real estate in another may each need a probate court appointment in that state. A properly funded living trust can help avoid ancillary probate. This keeps everything in one place and simplifies the process from the date of death forward.

A. All assets of estates being administered in this state are subject to all claims, allowances and charges existing or established against the personal representative wherever appointed. B. If the estate either in this state or as a whole is insufficient to cover all family exemptions and allowances determined by the law of the decedent's domicile, prior charges and claims, after satisfaction of the exemptions, allowances and charges, each claimant whose claim has been allowed either in this state or in another jurisdiction in administrations of which the personal representative is aware, is entitled to receive payment of an equal proportion of his claim. If a preference or security in regard to a claim is allowed in another jurisdiction but not in this state, the creditor so benefited is to receive dividends from local assets only upon the balance of his claim after deducting the amount of the benefit. C. In case the family exemptions and allowances, prior charges and claims of the entire estate exceed the total value of the portions of the estate being administered separately and this state is not the state of the decedent's last domicile, the claims allowed in this state shall be paid their proportion if local assets are adequate for the purpose, and the balance of local assets shall be transferred to the domiciliary personal representative. If local assets are not sufficient to pay all claims allowed in this state the amount to which they are entitled, local assets shall be marshalled so that each claim allowed in this state is paid its proportion as far as possible, after taking into account all dividends on claims allowed in this state from assets in other jurisdictions.

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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