How Good-Faith Payments Protect Debtors and Property Holders
When a person dies in another state but has assets in Arizona, someone here may owe money to the estate or hold personal property that belonged to the deceased. This statute addresses a practical concern: can the debtor or property holder safely hand over the assets to a foreign personal representative without worrying about legal exposure?
Payment or delivery made in good faith on the basis of the proof of authority and affidavit releases the debtor or person having possession of the personal property to the same extent as if payment or delivery had been made to a local personal representative.
A.R.S. § 14-4202The answer is yes, provided the foreign personal representative presents valid proof of authority and a proper affidavit under A.R.S. 14-4201. Once those conditions are met, the person making the payment or turning over property gets a full discharge. They are treated exactly as if they had dealt with a personal representative appointed by an Arizona court.
Why This Matters for Arizona Residents
This protection is important for banks, employers, tenants, and anyone else in Arizona who might hold funds or property connected to a nonresident's estate. Without this statute, they might refuse to release assets out of fear that a different claimant could come forward later. The good-faith discharge removes that uncertainty and keeps estate settlement moving efficiently across state lines.
If a local administration is later opened in Arizona, different rules may apply. But for transactions completed in good faith before that happens, the discharge stands.