When Heirs Want to Divide Things Differently
A will might leave everything equally to three children. But those children may have their own preferences. One wants the house. Another wants the investment accounts. The third prefers cash. This statute gives them the flexibility to work it out on their own terms.
Subject to the rights of creditors and taxing authorities, competent successors may agree among themselves to alter the interests, shares, or amounts to which they are entitled under the will of the decedent or under the laws of intestacy, in any way that they provide in a written contract executed by all who are affected by its provisions.
A.R.S. § 14-3912The agreement must be in writing and signed by every person whose share is affected. Once that is in place, the personal representative is bound to follow the agreement when distributing estate assets. This gives families the power to tailor distributions to their actual needs rather than relying on a rigid formula.
Important Limits on These Agreements
The flexibility is not unlimited. Creditors and taxing authorities come first. No private agreement among heirs can reduce what creditors are owed or avoid estate taxes. The personal representative still has a duty to pay all debts, taxes, and administrative expenses before honoring the agreement.
The agreement also cannot affect successors who are not parties to it. If a trust is created under the will, the trustee is treated as a successor for purposes of this statute, but the trustee still owes fiduciary duties to trust beneficiaries. A private agreement cannot override those duties.
When family members are on good terms and willing to communicate openly, this statute provides a practical tool for avoiding the cost and delay of formal court proceedings. Partner attorneys can help draft these agreements to make sure they satisfy legal requirements and protect everyone involved.