First Things First: Why This Matters to Families
Losing a loved one is overwhelming. Families in Arizona often come to us in the hardest time of their lives — juggling grief, bills, and decisions they never expected to face… all while trying to manage their own everyday life.
One of the first questions we hear is:
“Do we need probate, or can we just use an affidavit?”
When someone passes away, the assets they own in their individual name are essentially frozen. No one can access or transfer them until the law “unfreezes” them — and in Arizona, there are only two ways to do that. If the person owned property in their individual name, a family member or anyone else can’t simply sign their name to transfer ownership. They need legal authority. In probate, that authority comes either from being formally appointed by the court as the Personal Representative of the estate, or through a Small Estate Affidavit, which allows someone to claim ownership when the estate qualifies for this simplified process.
With Arizona’s new law raising the limits on affidavits to $300,000 for real estate and $200,000 for personal property, the answer is more confusing than ever. On paper, affidavits sound simple. In real life, they often create more headaches.
This guide breaks it down in plain English — with real stories, timelines, and tools to help your family avoid costly mistakes.
Quick Takeaways
- New law effective Sept. 26, 2025: Affidavit limits jump to $300K (real estate) and $200K (personal property).
- Affidavits seem faster and cheaper, but in practice they can often drag out 6–7 months and expose heirs to personal liability.
- Probate often finishes in 6–7 months, with stronger protections.
- Title companies and banks can reject affidavits, even if they meet legal requirements.
- If there are multiple heirs, debts, minors, or stepchildren — probate is almost always safer.
Probate vs. Small Estate Affidavits
Probate = Authority
Probate is court-supervised. The Court appoints one Personal Representative with Letters of Appointment, giving them full legal power to:
- Sell real estate and all other assets
- Close bank accounts
- Pay debts and taxes
- Distribute assets fairly
- Protect the estate with court oversight
Bottom Line: Probate gives families one decision-maker with legal authority.
Affidavit = Ownership
A small estate affidavit is a sworn statement saying “I have the right to own this property.” No court oversight. After filing the affidavit, each person that signs the affidavit becomes an owner, but:
- Everyone must agree on every decision
- No one has authority to act alone
- Creditors can sue heirs personally if not paid
Bottom Line: Affidavits work only when everything is simple.
Arizona’s Expanded Small Estate Law
- Personal property limit: $200,000 (up from $75,000)
- Real estate limit: $300,000 (up from $100,000)
Key Rule: New limits apply to affidavits filed on or after Sept. 26, 2025.
How Property Values Are Calculated
Personal Property A.R.S. § 14-3971(B)
- Includes bank accounts, vehicles, stocks, bonds, etc.
- Secured loans are subtracted to determine if the affidavit can be used.
- Valued as of date of death for 30-day affidavits, OR as of affidavit date if a personal representative was discharged more than one year ago.
Real Property A.R.S. § 14-3971(E)
- Based on the “full cash value” listed on the county tax assessment roll for the year of death.
- Liens and mortgages are subtracted.
- For liens like a mortgage, the value is the unpaid principal balance due on the debt at death.
Example:
- Home tax-assessed (full cash value) at $460,000
- Mortgage balance: $190,000
- Net equity = $270,000 → qualifies under the new $300,000 real estate limit.
Probate vs. Affidavit at a Glance
| Factor | Probate | Affidavit |
|---|---|---|
| Authority | One representative with legal power | All heirs must act together |
| Timeline | 6–8 months | 30 days (personal property), 6 months (real estate), often 7–8 months total |
| Attorney Fees/Costs | ~$5,500 | ~$2,000 |
| Creditor Protection | Strongest | None — heirs personally liable |
| Family Disputes | Court resolves | Any dispute blocks the process |
| Title Companies | Always accepted | Possibly rejected |
| Best For | Complex or risky estates | Single heir, no debt |
Real-World Stories (When Probate Protects Families)
Missing Original Will
Linda in Mesa had only a photocopy of her mother’s will leaving the house to her. She tried to use an affidavit, but Arizona law requires the original will. The Court refused to allow her to file the affidavit to transfer the ownership of the property. Probate was the only way to validate the copy and transfer the ownership to herself.
No Original Death Certificate
Terry and Rebecca were under contract to sell their mother’s house 3 years after she died. They tried to file the affidavit to transfer their interest in their mother’s house to them to close escrow, but they could not locate the original death certificate. As a result, the Court denied the filing of the affidavit and they lost the buyer. Had they filed a probate (without the death certificate) and gotten appointed as the representatives, they could have kept the deal alive.
The Stepchild Veto
Sarah in Tucson thought she would inherit her $275K home outright when her husband died without a will — they were married, after all. She wanted a fresh start and decided to sell the house. But he had two adult children from a prior marriage. With an affidavit, Sarah and the stepchildren would all become co-owners, but they refused to speak with her and sign the affidavit. The standoff dragged on for months and the sale was lost. Probate would have avoided the conflict by giving Sarah clear authority to sell the property, but she would have needed to hold 50% for the step children in a probate account.
The Three Sibling Standoff
A Lake Havasu father left his $240K home to his three children in his will. One wanted to keep it, one wanted to sell, and the third wanted to turn it into a rental. With an affidavit, they all became equal owners — but no one had authority to act. After months of deadlock after the affidavit was filed, a partition lawsuit was filed to force the sale, costing another $10,000 in attorney fees. Probate would have avoided the standoff by giving one Personal Representative clear authority.
The Forgotten Debt Surprise
James in Prescott used an affidavit to claim his dad’s $70K bank account. Months later, a $60K hospital bill surfaced. Because he skipped probate, creditors came after him personally. Probate would have shielded him from personal liability.
The Minor Child Roadblock
Tammy and Sandra were under contract to sell their dad’s property, but their other sister previously passed away leaving a child (Angela was 16-year-old). Tammy and Sandra could not use the affidavit because Angela was a minor. Probate was required to sell the house and a court process called conservatorship was necessary to hold the funds for Angela.
The Mortgage Roadblock
Maria in Lake Havasu inherited a $290K home with a $180K mortgage. She filed the affidavit and did everything right, but the lender refused to talk without probate authority because she did not sign the mortgage (her mom did). Six months and $15K in carrying costs later, she gave up and filed probate.
The Family Business in Limbo
Robert’s three kids tried to run his Phoenix HVAC company with affidavits. Banks and vendors refused to cooperate. The business collapsed before probate gave them authority.
Eviction of Tenants
Tom had recently moved a friend into the house to help offset the cost-of-living expenses shortly before he passed away. After his death, Tom’s children asked the friend to leave, but the friend refused stating, “Tom told me I could stay as long as I wanted.” Tom’s children could use the affidavit to transfer the property, but they did not want to wait the 6 months to become owners of the property. They decided to open up probate and they were appointed as personal representatives, which allowed the eviction process to get started immediately.
Probate was open 8 months ago
Thomas was going to use the affidavit to transfer property to himself after his mother died as the sole heir, but the probate registrar denied his filing because he had just closed probate 8 months ago. The law does not allow the affidavit to be used unless more than 1 year had passed, so he had to re-open probate.
Bottom Line: These are not rare stories — they’re the norm when families try affidavits in complex situations.
Real Estate Carrying Costs During the Affidavit Wait
When families choose the affidavit route, they often forget about carrying costs during the 6-month waiting period. Those bills add up fast:
Monthly Expenses While Waiting 6 Months:
- Mortgage: $2,200/month
- Insurance & utilities: $400/month
- Total = $15,600
Maria’s Real Numbers
- Inherited a $290,000 home with a $180,000 mortgage
- Affidavit path: $15,600 carrying costs + $2,000 legal fees = $17,600
- Probate path: $5,500 total cost, completed in 5 months
- Maria saved $12,100 by choosing probate
Arizona Requirements Still Apply (A.R.S. § 14-3971)
Even with the new higher limits, the fundamental affidavit rules remain unchanged.
Basic Rules:
- Funeral expenses and last illness costs must be paid first
- No personal representative can already be appointed anywhere
- All legitimate heirs must be properly identified
- Assets must be valued according to statutory methods
- Personal property affidavits: certified death certificate required
- Real property affidavits: certified death certificate and original will (if one exists) must be attached
- Federal estate tax requirement: “No federal estate tax is due on the decedent’s estate” (real property affidavits only)
Court Filing Requirements:
- Personal property affidavits: presented directly to banks, DMV, or asset holders
- Real property affidavits: must be filed with the probate court under A.R.S. § 14-3971(F), and the registrar issues a certified copy for county recording
Why Affidavits Can Take Longer Than Probate
On paper:
- 30 days for personal property
- 6 months for real property
In real life:
- 6-month wait for real estate, even if urgent sale needed.
- Every heir must sign — out-of-state heirs, notary issues, mailing can delays weeks/months.
- Title company reviews can result in rejections.
- Hidden debts surface months later, exposing heirs to liability.
- Mistakes force families back into probate after months of delay.
Bottom Line: Affidavits are “wait first, fight later.” Probate is “act now, resolve under court supervision.”
| Green Light (Affidavit May Work) | Red Light (Probate Required) |
|---|---|
| Estate well below thresholds | Estate above limits $300K real / $200K personal |
| Simple family dynamic | Family: blended, minors, incapacitated heirs |
| Original will available (or no will) | Missing original will (only copy exists) |
| All heirs local and cooperative | Multiple heirs who disagree or can’t be located |
| All debts paid, no hidden bills | Debts, IRS liens, or medical bills not resolved |
| No urgent property sale required | Need to sell now |
| No business, LLC, or digital assets | Business assets, LLC shares, or cryptocurrency involved |
| Title/bank willing to accept | Title company or bank refuses affidavit |
Bottom Line: Even one “Red Light” means probate is safer and usually faster.
Notes From the Attorney
“After 750+ cases, the #1 mistake families make is assuming affidavits are always simpler.
Probate gets a bad reputation, but in Arizona, it’s designed to be efficient. In most cases, it’s the safer, clearer path.”
Next Steps: Protect Your Family
At Rahnema Law, we’ve guided hundreds of Arizona families through probate. Choosing the right path at the start can save months of stress and thousands of dollars. We solve probate problems- that’s all we do.
If you’re unsure whether probate or affidavit is right for your family: visit www.rahnemalaw.com
Check out our 113 FAQ’s. Click here.
This blog is for educational purposes only and does not constitute legal advice. Every case is unique — consult with a qualified Arizona probate attorney before making decisions.