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 who manages the estate has a duty to pay just claims from estate funds. Under Arizona probate law, there are 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. A conservator who overlooks a creditor's letter could find the estate required to pay a debt that might have been contested. In some cases, the conservator may publish notice to creditors to bring all potential claims to light.
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 probate law sets a priority system. Claims for the protected person's care, maintenance, and education come first. Expenses to administer the estate also take priority. Other claims rank lower.
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, the creditor can petition the court for a determination at any time before the statute of limitations runs out. A notice to creditors can help the conservator identify and resolve all outstanding debts in an orderly way. Presenting a claim pauses the statute of limitations for 30 days after disallowance, giving the creditor time to take action.