How a Claim Gets Presented and Resolved
A conservatorship does not shield the protected person from legitimate debts. Creditors can present claims against the estate, and the conservator has a duty to pay just claims from estate funds. Arizona law provides two ways for a creditor to present a claim: by mailing or delivering a written statement directly to the conservator, or by filing the claim with the court and sending a copy to the conservator.
A conservator must pay from the estate all just claims against the estate and against the protected person arising before or after the conservatorship upon their presentation and allowance.
A.R.S. § 14-5428(A)Once a claim is presented, the conservator has 90 days to disallow it in writing. If the conservator does not respond within that window, the claim is automatically considered allowed. This timeline matters. A conservator who overlooks a creditor's letter could find the estate obligated to pay a debt that might have been contested.
When the Estate Cannot Cover All Claims
If it becomes clear that the estate will run out of money before all claims are paid, Arizona law establishes a priority system. Claims for the protected person's care, maintenance, and education come first, along with expenses of administering the conservatorship. Other claims take a lower priority.
If it appears that the estate in conservatorship is likely to be exhausted before all existing claims are paid, preference is to be given to prior claims for the care, maintenance and education of the protected person or his dependents and existing claims for expenses of administration.
A.R.S. § 14-5428(C)If a creditor's claim is disallowed by the conservator, the creditor is not out of options. They can petition the court for a determination of the claim at any time before the applicable statute of limitations runs out. Presenting a claim also pauses the statute of limitations for 30 days after disallowance, giving the creditor time to take action.