The best way to avoid probate is with proper estate planning and a trust during your lifetime; however, there are a few other alternatives to probate depending on the value of the deceased’s assets.
If the total value of all the real property in the estate is less than $100,000 then a Real Property Affidavit is a substitute for probate. If the total of personal property is less than $75,000 it can be collected by a Personal Property Affidavit.
Real Property Affidavit
In Arizona, a real property affidavit can be filed six months after a person passes away to collect real property from the estate. This ends up being less time consuming and therefore fewer expenses than an informal probate but requires waiting for six months before the property can be collected. Although an informal probate usually takes close to a year to complete, the personal representative receives the authority to act for the estate once the court approves the probate application and issues the personal representative letters which takes approximately 4-8 weeks (2-3 weeks for our office to draft the initial probate documents and 2-5 weeks for the courts to process the documents). If there is a mortgage on the real property it is sometimes necessary to open a probate even if the value is less than $100,000 so the property can be sold in a timely manner.
Personal Property Affidavit
Personal Property Affidavit is a substitute for probate when the total value of personal property in the estate is less than $75,000. This can be filed 30 days after the person passes away and is permissive, meaning that companies can accept this as substitute for Probate and the personal representative letters (also called, letters testamentary or letters of administration), but they are not required to accept it. Usually, if the company has offices in Arizona they are familiar with this probate substitute and will honor it. It is not uncommon for companies not located in AZ to still require Probate and the letters issued from the court to prove the personal representative has the authority to act for the estate.