The Instrument of Distribution
Handing someone a set of keys does not transfer legal title to estate property. Arizona requires a formal paper trail. When assets are distributed in kind, the personal representative must execute an instrument or deed that officially assigns the property to the recipient.
If distribution in kind is made, the personal representative shall execute an instrument or deed of distribution assigning, transferring or releasing the assets to the distributee as evidence of the distributee's title to the property.
A.R.S. § 14-3907(A)This document serves as the beneficiary's proof of ownership. Without it, a beneficiary may struggle to sell, refinance, or manage inherited property. Financial institutions, title companies, and government agencies all rely on this documentation to confirm the transfer was legitimate.
Special Requirements for Real Property
Real estate transfers carry an additional requirement. Any deed of distribution that will be recorded with a county recorder must include the names and addresses of each distributee.
The names and addresses of each distributee shall be included in any instrument of distribution transferring title to real property recorded by any county recorder.
A.R.S. § 14-3907(B)This ensures a clear chain of title in the public record. Personal representatives handling real estate distributions should coordinate with an attorney or title company to make sure the deed meets all recording requirements. A properly executed deed of distribution prevents title disputes and makes future transactions with the property much smoother for the beneficiary.