Arizona Law on Wills, Trusts & Estates
Arizona's estate law allows a person to write a will or create a trust to set forth how her assets should be divided upon her death. However, some property cannot be passed by will or trust. Additionally, if the person dies without a will, any property not passing by trust or other form of inheritance passes according to Arizona's intestate law.
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Trusts
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A person can put his property in trust to control how it passes to the beneficiary after his death. This person, called the grantor, will name the beneficiary, who will receive the property, as well as the trustee, who will control the property. The trustee should be someone the grantor trusts, and someone who will not make risky investments with the trust's assets or use those assets for his own gain. A grantor often chooses to name himself as the trustee initially and names a successor trustee to take over upon his death or if he becomes mentally incompetent.
There are several benefits to putting property in trust. First, it allows the trust property to pass without the sometimes costly and lengthy probate process. Next, it allows a trustee to monitor the trust's assets and distribute them over time, preventing the beneficiary from wastefully depleting the trust. Lastly, if a trust is substantial, it can provide income for one beneficiary's lifetime and then provide for secondary and even tertiary beneficiaries after the primary beneficiary.
Wills
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In Arizona, a testator making a will must be of full mental capacity ("of sound mind") and no less than 18 years old. That will must be in writing, the testator must sign the will and two witnesses who watched the testator sign the will must also sign it. The testator can name anyone as a beneficiary with the right to inherit and can also disinherit anyone, including her spouse.
A testator's will is valid for probate upon death unless changed or revoked. A person can revoke her will entirely by signing a new will or by destroying the old one. She may also make changes by signing a codicil with additions or deletions. A will should be updated to reflect changes in the testator's life, including divorce, marriage, the birth of a child or the sale and purchase of any property.
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Other Property
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Not all property can be passed to a beneficiary by will or trust. For example, if a decedent has life insurance, the beneficiary he chose when he purchased the policy will automatically receive the proceeds after a death certificate is submitted. Additionally, if the decedent owned any property jointly with one or more other owners, those surviving owners will inherit equal shares of the decedent's percentage of ownership upon his death. Lastly, a surviving spouse is entitled to inherit a percentage of the decedent's estate automatically, even before any debts and costs are paid. First, a spouse will receive exempt property with a value of up to $7,000, including household furniture and appliances, an automobile and personal property like jewelry. Next, the spouse inherits an $18,000 homestead allowance, designed to support the spouse and his dependents in the immediate months following the decedent's death. Finally, if a spouse was disinherited (left out of the will), he is entitled to an elective share of $37,000.
Intestacy Law
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If a decedent dies without a will, any property without an eligible beneficiary passes according to Arizona's intestate law. A surviving spouse is entitled to inherit the decedent's entire estate upon her death. If the decedent is not survived by a spouse, the decedent's children will inherit equal shares of the entire estate. If the children are not also the surviving spouse's children, they will inherit any separate property that the spouse is not entitled to, and the spouse will inherit the remaining estate. Parents are the next to inherit if the decedent is not survived by any heirs. If the parents are already deceased, siblings may inherit. If no closer relatives remain, more distant relatives, like cousins, can inherit. The decedent's estate only passes to the state of Arizona if there are no surviving relatives.
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