Below the Radar: When an Estate’s Assets Don’t Require Probate

By Kent Berk on October 24th, 2013 in BLOG, ARIZONA, Probate

Editor’s update (September 2026): Arizona non-probate rules have evolved since this 2013 post. For current guidance, try our interactive tool Do I Need to Open Probate in Arizona? and our FAQ What Are Non-Probate Assets — and Can They Still Be Contested?

Arizona real estate - Berk & Moskowitz, P.C. When a person passes away in Arizona, his or her estate typically goes through probate. In the probate process, the person’s assets are collected, any outstanding debts are paid, and what’s left over is distributed to the heirs named in the deceased’s last will and testament. If the person didn’t have a will, the assets are distributed to the surviving spouse and/or heirs. This is done under the oversight of a probate court.

Not all of the assets of a person’s estate have to go through probate, however. Some can pass to the heir without the supervision of the court. These assets may include:

Assets held in a living trust
Property held in joint tenancy
Community property with right of survivorship
Bank accounts that are payable-on-death
Assets registered in a transfer-on-death form
Real estate with a transfer-on-death deed
Retirement accounts with beneficiary designations
Contracts, such as life insurance policies and annuities, that specify a beneficiary

In addition, some estates can avoid the full probate process. Assets from a “small estate” can be transferred using a Small Estate Affidavit.

What counts as a small estate?

Recently, the Arizona Senate amended Senate Bill 1232 to enlarge the definition of a small estate. The senate increased the limit of the value of personal property (e.g. cash, bank accounts, stocks, cars, and jewelry) and real property (e.g. real estate) that can be transferred by affidavit. The limit for personal property increased from $50,000 to $75,000 and the limit for real property from $75,000 to $100,000. Both values are determined after deducting any liens against the personal or real property.

To transfer personal property of a small estate by affidavit, an heir must wait thirty days after the death of the person. To transfer real property, six months must have elapsed, no federal estate tax may be due, and the person’s funeral expenses, expenses of last illness and all unsecured debts must have been paid. More information and forms are available on the Maricopa County, Arizona Superior Court website.

If you have questions about the probate process or transferring small estates, please feel free to give our office a call.