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Learn how to complete an Arizona probate inventory, identify probate assets, determine date-of-death values, disclose liens, and meet the 90-day deadline.

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The Arizona probate inventory is one of a personal representative’s most important early responsibilities.

It establishes a record of the property owned by the person who died, the value of that property on the date of death, its classification as community or separate property, and any mortgage, lien, or other encumbrance affecting it.

An Arizona personal representative who is subject to the inventory requirement generally must complete the following work within 90 days after appointment:

1. Identify the property the decedent owned at death.
2. Determine which property belongs to the probate estate.
3. Describe each probate asset with reasonable detail.
4. Determine its fair market value on the date of death.
5. Classify it as community or separate property.
6. Identify the type and amount of any encumbrance.
7. Decide whether to file the inventory with the court or distribute it privately as permitted by statute.
8. Correct or supplement the inventory if new or inaccurate information is later discovered.

The inventory is not a list of the property each beneficiary will ultimately receive. It is also not the final accounting of everything that happens during probate.

It records the estate’s starting assets as of the date of death.

What is an Arizona probate inventory?

Arizona law calls the document an inventory and appraisement.

The inventory must list property owned by the decedent at death with reasonable detail. For each listed asset, it must indicate:

• Fair market value as of the date of death
• Whether the property was community or separate
• The type of any encumbrance
• The amount of that encumbrance

These requirements are contained in A.R.S. § 14-3706.

The inventory provides a financial starting point for the administration.

It can later help the personal representative:

• Protect and manage property
• Evaluate estate liquidity
• Explain assets to interested persons
• Review creditor and tax issues
• Decide whether property should be retained or sold
• Prepare the estate accounting
• Document distributions
• Explain what happened to each probate asset

Arizona treats the personal representative as a fiduciary with duties of care and accounting. A reliable inventory supports those broader responsibilities.

When is the Arizona probate inventory due?

The personal representative generally must prepare the inventory within 90 days after appointment.

The deadline runs from the appointment date. It does not run from the decedent’s death or merely from the date the probate documents were submitted.

The statutory requirement does not apply to:

• A special administrator
• A successor personal representative when the prior representative already discharged the inventory duty

These rules appear directly in A.R.S. § 14-3706.

The personal representative should identify the appointment date immediately and calendar the deadline.

Waiting until the last few weeks can create problems when:

• A bank is slow to provide historical statements.
• The estate owns real estate requiring an appraisal.
• A business interest must be valued.
• Ownership records are incomplete.
• Community-property classification is unclear.
• Assets are located in another state.
• Financial institutions require additional documentation.

The better approach is to begin building the working asset list as soon as the appointment becomes effective.

Arizona Law Note: The 90-day period is a deadline for preparing the inventory. Because the inventory may require institutional records, ownership analysis, and professional valuations, the information-gathering process should begin well before the deadline.

Begin with a broad working asset list

Start by creating a preliminary list of everything the decedent may have owned or had a financial interest in.

Review:

• The decedent’s residence
• Mail
• Email
• Tax returns
• Bank statements
• Investment records
• Deeds
• Vehicle titles
• Insurance records
• Retirement records
• Business documents
• Loan agreements
• Digital files
• Safe-deposit-box information

Information may also come from:

• Family members
• Accountants
• Financial advisers
• Employers
• Business partners
• Property managers
• Banks
• Brokerage firms
• Insurance companies
• Government agencies

Common potential assets include:

• Real estate
• Bank accounts
• Brokerage accounts
• Vehicles
• Business interests
• Household belongings
• Jewelry
• Artwork
• Collections
• Money owed to the decedent
• Tax refunds
• Legal claims
• Digital assets
• Cryptocurrency

Frequently overlooked property may include:

• Unpaid wages or commissions
• Security deposits
• Refunds and rebates
• Promissory notes
• Mineral or royalty interests
• Intellectual property
• Unclaimed property
• Safe-deposit-box contents
• Membership interests
• Closely held stock
• Pending insurance claims
• Funds held by an attorney or escrow agent

The initial list should be broad. An item can later be removed, divided, or reclassified after its ownership and transfer method are confirmed.

Determine which assets belong to the probate estate

Not every asset associated with the decedent belongs in the probate inventory.

Arizona recognizes transfers that occur outside probate through written instruments such as:

• Trusts
• Life-insurance policies
• Retirement plans
• Beneficiary designations
• Account agreements
• Payable-on-death arrangements
• Transfer-on-death registrations
• Beneficiary deeds
• Survivorship provisions

An effective nonprobate transfer generally operates according to the governing instrument rather than through the decedent’s will.

For each potential asset, determine:

1. Who owned the asset on the date of death?
2. How was the asset titled?
3. Did another owner survive?
4. Was a beneficiary designated?
5. Was the asset held in a trust?
6. Did the decedent own the entire asset or only a percentage?
7. Did the asset pass automatically at death?
8. Does any agreement restrict or control the transfer?

A will does not automatically override a valid trust, account agreement, beneficiary designation, or survivorship arrangement.

For example, Arizona law generally provides that funds in a qualifying multiple-party account pass to the surviving party or parties. Funds in a payable-on-death account may pass to the surviving beneficiary, while funds in a single-party account without a payable-on-death designation generally become part of the decedent’s estate.

When ownership is uncertain, investigate the governing records rather than omitting the asset based on an assumption.

The inventory should reflect the probate property the decedent owned at death, not every item mentioned in the will and not every asset that relatives associate with the decedent.

Identify the decedent’s ownership interest

The decedent may have owned only part of an asset.

Examples include:

• A percentage interest in real property
• A partnership interest
• Membership units in a limited liability company
• Shares in a closely held corporation
• A partial beneficial interest
• A joint account without survivorship
• The decedent’s share of community property

The inventory should identify the interest actually attributable to the decedent or probate estate.

If the decedent owned a 50% interest in a parcel of real estate, the inventory should not automatically represent that the estate owns the entire property.

The supporting records should show:

• The total asset
• The form of ownership
• The decedent’s percentage or share
• The value assigned to that interest
• Any valuation adjustment or restriction considered

Arizona law provides that a decedent’s separate property and the decedent’s share of community property devolve at death subject to probate administration and the rights protected by Title 14.

Describe each asset with reasonable detail

Arizona requires property to be listed with reasonable detail.

The description should allow an interested person to understand what the asset is and distinguish it from other estate property.

Real estate

A real-estate description may include:

• Street address
• County
• Property type
• Parcel information when appropriate
• Decedent’s ownership interest

Bank accounts

A financial-account description may include:

• Institution
• Account type
• Limited identifying digits
• Decedent’s ownership interest

Vehicles

A vehicle description may include:

• Year
• Make
• Model
• Limited vehicle-identification information
• Ownership percentage

Investments

An investment description may include:

• Institution or issuer
• Account type
• Security or fund
• Number of shares or units
• Limited account-identification information

Business interests

A business-interest description may include:

• Entity name
• Entity type
• Percentage owned
• Class of ownership
• Applicable ownership restrictions

Descriptions such as “bank account,” “property,” or “personal belongings” may be too vague when several similar assets exist or when an item has material value.

At the same time, the inventory should not unnecessarily disclose:

• Full account numbers
• Social Security numbers
• Passwords
• Complete access credentials
• Other sensitive information unrelated to the statutory requirements

Maintain a separate confidential worksheet containing complete identifiers and supporting details.

Use fair market value as of the date of death

The inventory must state each asset’s fair market value as of the decedent’s date of death.

Fair market value generally means the price property would sell for on the open market between a willing buyer and a willing seller, when neither is required to act, and both have reasonable knowledge of the relevant facts.

The correct inventory value is not necessarily:

• The original purchase price
• The insured value
• Replacement cost
• Sentimental value
• The balance on the inventory-preparation date
• The amount received in a later sale
• A county tax assessment
• An unsupported online estimate

The valuation should reflect the asset and the market conditions that existed on the date of death.

An asset may increase or decrease in value during probate. Those later changes belong in the estate’s accounting and tax analysis rather than being substituted automatically for the original date-of-death value.

Keep the valuation date consistent

The date-of-death requirement applies to every inventory asset.

When gathering information, ask institutions and appraisers specifically for values as of the date of death.

Do not combine:

• A date-of-death bank balance
• A current brokerage value
• A later real-estate sales price
• A vehicle value from a different month

Using different valuation dates can create a misleading picture of the estate’s opening value.

For each asset, preserve:

• The valuation date
• The valuation source
• The method used
• Any assumptions
• Supporting documents
• The person who prepared the valuation

A valuation worksheet can help the representative confirm that every listed figure uses the correct date.

How to value bank accounts

For checking, savings, money-market, and certificate-of-deposit accounts, request a statement or confirmation showing the balance on the date of death.

A current online balance may include:

• Interest posted after death
• Fees charged after death
• Deposits made after death
• Withdrawals made after death
• Automatic payments
• Returned items

Review:

• The official date-of-death balance
• Outstanding checks
• Pending deposits
• Accrued interest
• Ownership percentage
• Survivorship or payable-on-death terms
• Any restrictions or penalties

If the account was jointly owned, determine whether any portion belongs to the probate estate under the account agreement and Arizona law before listing the balance.

Preserve the institution’s written confirmation with the inventory records.

How to value investment accounts

For brokerage accounts, stocks, bonds, mutual funds, and similar investments, obtain a date-of-death valuation from the financial institution when available.

The records should identify:

• Cash balance
• Number of shares or units
• Security names
• Date-of-death market values
• Accrued interest
• Declared dividends
• Ownership interest
• Any transfer-on-death designation

Additional analysis may be required when:

• The date of death fell on a weekend or market holiday.
• A security was thinly traded.
• The account held restricted stock.
• A security had no readily available market price.
• The decedent owned a controlling or minority interest.
• The account contained complex financial products.

A qualified financial or valuation professional may be appropriate when the institution cannot provide a reliable figure.

How to value Arizona real estate

Real estate is often one of the largest assets in an Arizona probate estate.

A qualified appraisal may be appropriate when:

• The property has substantial value.
• The condition is unusual.
• The property is expected to be sold.
• Beneficiaries disagree about value.
• The decedent owned only a partial interest.
• The property has title, access, zoning, or environmental issues.
• Tax consequences may depend on the valuation.

The appraiser or other valuation source should consider the property as it existed on the date of death.

Relevant information may include:

• Location
• Size
• Condition
• Improvements
• Comparable sales
• Deferred maintenance
• Occupancy
• Access
• Ownership percentage
• Restrictions affecting use or sale

A county property-tax valuation is not automatically the same as fair market value. An automated online estimate may also fail to account for the property’s actual condition or ownership issues.

If the decedent owned only part of the property, identify and value the decedent’s interest rather than automatically listing the full property value.

How to value vehicles

A vehicle’s date-of-death value may be supported by:

• Recognized market guides
• Dealer information
• Comparable listings or sales
• A professional appraisal
• Documentation of condition and mileage

Record:

• Year
• Make
• Model
• Mileage
• Condition
• Equipment
• Accident history when relevant
• Ownership percentage
• Loan balance

Photographs and maintenance records may help support the selected value.

The amount originally paid for the vehicle or the remaining loan balance does not establish fair market value.

How to value household goods and personal belongings

Ordinary household property generally should be valued according to reasonable resale value rather than replacement cost.

Used furniture, clothing, kitchenware, electronics, and similar items may have much lower resale values than their original purchase prices.

It may be practical to group ordinary items when:

• No single item has substantial value.
• The items are similar.
• The group description remains understandable.
• The supporting worksheet provides greater detail.

Items that may warrant separate identification or appraisal include:

• Jewelry
• Artwork
• Antiques
• Firearms
• Coins
• Precious metals
• Collectibles
• Musical instruments
• Professional equipment
• Luxury goods
• Valuable furniture

Sentimental importance does not necessarily equal fair market value.

Photograph significant items and record their condition before they are sold, moved, or distributed.

How to value a business interest

A closely held business, partnership interest, professional practice, or limited liability company interest may require a professional valuation.

The amount in the company’s bank account does not by itself establish the value of the decedent’s ownership interest.

The analysis may need to consider:

• Assets
• Liabilities
• Earnings
• Cash flow
• Contracts
• Customer concentration
• Goodwill
• Intellectual property
• Marketability
• Control rights
• Ownership percentage
• Transfer restrictions
• Buy-sell provisions

Review:

• Operating agreements
• Partnership agreements
• Shareholder agreements
• Buy-sell agreements
• Financial statements
• Tax returns
• Capital-account records
• Ownership certificates

A governing agreement may determine whether the interest transfers to the estate, must be sold, or is subject to a contractual valuation method.

Because business values can affect taxes, distributions, and beneficiary disputes, preserve the valuation report and all supporting records.

How to value money owed to the decedent

The estate may own a right to receive money.

Examples include:

• Promissory notes
• Loans made by the decedent
• Unpaid wages
• Commissions
• Royalties
• Accounts receivable
• Settlement proceeds
• Refund claims
• Legal claims

The face amount may not always equal fair market value.

Consider:

• Payment history
• Interest
• Collateral
• Debtor solvency
• Collection costs
• Statute-of-limitations issues
• Disputes or defenses
• Likelihood of recovery

Describe the receivable and preserve the note, contract, correspondence, or other supporting documentation.

When to use a qualified appraiser

Arizona law allows the personal representative to employ a qualified and disinterested appraiser when the fair market value of an asset is subject to reasonable doubt.

Different appraisers may be used for different kinds of property.

When an appraiser is used, the appraiser’s name and address must be indicated on the inventory with the property that person valued.

An appraiser may be appropriate for:

• Real estate
• Business interests
• Artwork
• Jewelry
• Antiques
• Coins
• Collectibles
• Intellectual property
• Unusual equipment
• Partial ownership interests

The appraiser should be:

• Qualified for the asset type
• Independent
• Disinterested
• Asked to use the correct valuation date

Preserve:

• The appraisal report
• The appraiser’s qualifications
• The engagement letter
• The invoice
• Supporting data
• The effective valuation date
• Communications concerning material assumptions

Arizona Law Note: Arizona does not require the same appraiser to value every asset. The personal representative may use different qualified and disinterested appraisers for different property categories.

Identify community and separate property

The inventory must indicate whether each asset is community or separate property.

This requirement is especially important when the decedent was married.

Arizona generally treats property acquired by either spouse during marriage as community property, subject to statutory exceptions. Property acquired by gift, devise, or descent is excluded from the general community-property rule.

A spouse’s property owned before marriage, and property acquired during marriage by gift, devise, or descent, generally constitutes that spouse’s separate property.

The classification may not be clear from the account title or deed alone.

Questions may arise when:

• Separate and community funds were mixed.
• Property was refinanced.
• Title changed during marriage.
• Community funds improved separate property.
• One spouse operated a business.
• Property was acquired while the spouses lived in another state.
• A marital agreement affects classification.
• The spouses were separated or involved in a dissolution proceeding.

Arizona probate law provides that the decedent’s separate property and the decedent’s share of community property pass subject to probate administration. The surviving spouse’s share of community property may also remain subject to administration for a period in connection with community claims.

When classification is uncertain, do not guess. Review the history of the property, source of funds, marital agreements, deeds, statements, and applicable law.

List encumbrances separately

For every listed asset, the inventory must state the type and amount of any encumbrance.

An encumbrance is a financial obligation or legal interest attached to property.

Examples include:

• Mortgage
• Deed of trust
• Vehicle loan
• Judgment lien
• Tax lien
• Home-equity loan
• Secured business loan
• Recorded assessment
• Security interest

The inventory should generally show:

1. The asset’s full fair market value
2. The type of encumbrance
3. The amount of the encumbrance

For example:

• Residence fair market value: $450,000
• Encumbrance type: Deed of trust
• Encumbrance amount: $175,000

Listing only the net equity of $275,000 would not communicate all the information required by the statute.

The personal representative should obtain a balance as close to the date of death as reasonably possible and preserve the supporting statement.

Do not confuse asset value with estate equity

The inventory’s asset value and encumbrance information serve different purposes.

The fair market value identifies what the asset itself was worth on the date of death.

The encumbrance identifies the debt or secured obligation affecting it.

Separating the figures allows interested persons to understand:

• Gross asset value
• Secured debt
• Approximate equity
• Estate liquidity
• Potential sale consequences

The remaining loan balance is not necessarily the same as the reduction a buyer would apply to value. The asset and the debt should be investigated and documented separately.

Decide whether to file the inventory with the court

Arizona gives the personal representative two statutory options.

Option 1: File the inventory

The representative may file the original inventory with the court and send a copy only to interested persons who request it.

Option 2: Do not file the inventory

If the representative elects not to file it, a copy must be delivered or mailed to:

• Each heir in an intestate estate
• Each devisee when a will has been probated
• Any other interested person who requests it

These alternatives are stated in A.R.S. § 14-3706.

Before the deadline, decide which option will be used and preserve records showing:

• Completion date
• Filing date, when applicable
• Mailing or delivery date
• Recipient names
• Recipient addresses
• Delivery method
• Requests received
• Copies provided
• Returned mail

The Arizona Judicial Branch provides generic probate forms that may be accepted statewide, but individual courts may use preferred forms or procedures. Review the instructions for the Superior Court handling the estate.

Arizona Law Note: Electing not to file the inventory does not eliminate the inventory requirement. It changes how the completed inventory must be delivered and maintained.

Protect sensitive information

The inventory should contain enough information to identify the assets without unnecessarily exposing information that could create a security risk.

Avoid including complete:

• Social Security numbers
• Bank-account numbers
• Brokerage-account numbers
• Credit-card numbers
• Passwords
• Login credentials
• Digital wallet keys

Use limited identifying digits when sufficient to distinguish similar accounts.

Maintain a private supporting worksheet with:

• Complete identifiers
• Institution contact information
• Valuation sources
• Ownership documents
• Beneficiary records
• Appraisal details
• Encumbrance statements

Before filing any inventory or supporting document, review applicable court rules and county-specific instructions concerning confidential information and redaction. The Arizona Judicial Branch’s probate portal directs filers to statewide authorities and court resources, but local procedures may still matter.

Preserve the records supporting each value

The personal representative should be able to explain how every material inventory value was determined.

Supporting records may include:

• Date-of-death bank statements
• Brokerage valuations
• Appraisal reports
• Vehicle-value reports
• Real-estate records
• Comparable-sale information
• Business financial statements
• Loan statements
• Photographs
• Institution correspondence
• Ownership agreements
• Beneficiary-designation records

Create a supporting file for each major asset.

The file should answer:

1. Why is the asset included?
2. What interest did the decedent own?
3. What was the valuation date?
4. How was fair market value determined?
5. What encumbrance existed?
6. How was community or separate status determined?
7. Who prepared the valuation?
8. Where is the supporting documentation?

Reliable documentation helps fulfill the personal representative’s fiduciary and accounting responsibilities and makes later sales, distributions, and accountings easier to explain.

What happens if another asset is discovered?

Discovery of an asset after completion of the original inventory does not necessarily mean the personal representative acted improperly.

Estate information often arrives gradually.

Later-discovered property may include:

• A tax refund
• An old bank account
• An investment account
• Unclaimed property
• Mineral rights
• A payment owed to the decedent
• A legal claim
• Intellectual property
• A business interest

Arizona requires a supplementary inventory or appraisement when:

• Property omitted from the original inventory comes to the representative’s attention.
• An original value was erroneous or misleading.
• An original description was erroneous or misleading.

The supplement must provide the new or corrected information, including the date-of-death value and the appraisers or other data relied upon when applicable.

If the original inventory was filed with the court, the supplemental inventory must also be filed.

If the original was not filed, the representative must provide copies of the supplement or information concerning it to persons interested in the new information.

Arizona Law Note: The duty to correct the inventory applies to both omitted assets and materially inaccurate or misleading descriptions or values.

A later sale price does not automatically make the inventory wrong

An asset may later sell for more or less than its inventory value.

That difference does not automatically mean the original inventory was inaccurate.

A later sale price may reflect:

• Market changes
• Repairs
• Deterioration
• Negotiation
• Urgency
• Commissions
• Carrying costs
• New information
• A different buyer market

The relevant question is whether the inventory stated a reasonable fair market value as of the date of death based on the information available.

The later sale should be recorded in the estate accounting, together with:

• Gross sale price
• Selling expenses
• Debt payoff
• Net proceeds
• Gain or loss analysis when applicable

The original inventory should be supplemented when the original value was erroneous or misleading—not merely because the property later sold for a different amount.

Connect the inventory to the estate accounting

The inventory identifies the estate’s opening assets.

The estate accounting later explains what happened to those assets.

Each listed item should eventually be traceable to an outcome such as:

• Retained
• Sold
• Collected
• Transferred
• Distributed
• Lost or damaged
• Determined to be nonprobate
• Used to satisfy an obligation
• Corrected through a supplemental inventory

For example, if the inventory lists a bank account, the accounting should show the collection or transfer of that balance.

If it lists real estate, the records should later show whether the property was:

• Retained
• Sold
• Distributed in kind
• Used to satisfy an estate obligation

A clear connection between the inventory and the accounting reduces questions about missing property or unexplained value changes.

Common Arizona probate inventory mistakes

Common mistakes include:

• Waiting too long to begin
• Missing the 90-day deadline
• Using current values instead of date-of-death values
• Listing nonprobate assets without reviewing ownership
• Omitting partial ownership interests
• Including an entire jointly owned asset without analysis
• Using vague descriptions
• Listing only net equity
• Failing to disclose liens separately
• Failing to classify property as community or separate
• Relying on unsupported estimates
• Failing to identify an appraiser
• Disclosing unnecessary confidential information
• Failing to preserve valuation records
• Failing to supplement the inventory
• Distributing assets before ownership and value are established

Another common mistake is assuming that the will determines which property belongs in the probate estate.

The will generally governs probate assets. It does not automatically defeat a valid trust, beneficiary designation, payable-on-death arrangement, or survivorship right.

A practical Arizona probate inventory checklist

Before completing the inventory, confirm that:

1. The appointment date has been identified.
2. The 90-day deadline has been calendared.
3. Financial, tax, title, and ownership records have been reviewed.
4. A broad preliminary asset list has been created.
5. Probate and nonprobate property have been distinguished.
6. The decedent’s ownership percentage has been determined.
7. Each probate asset is described with reasonable detail.
8. Each value reflects the date of death.
9. The valuation source has been preserved.
10. Community or separate status is identified.
11. Mortgages, liens, and other encumbrances are shown separately.
12. Qualified and disinterested appraisers were used when appropriate.
13. Appraiser names and addresses are included when required.
14. Sensitive identifying information has been limited.
15. The filing or private-delivery option has been selected.
16. Copies and proof of filing, mailing, or delivery are preserved.
17. Supporting valuation records are organized.
18. A process exists for identifying later-discovered assets.
19. A supplementary inventory will be prepared if information is omitted, erroneous, or misleading.
20. Inventory assets can later be traced through the estate accounting.

Build the foundation for the rest of probate

The Arizona probate inventory is more than an early administrative requirement.

It establishes the estate’s financial starting point.

A careful inventory helps the personal representative:

• Understand what the estate owns
• Identify ownership disputes
• Evaluate liquidity
• Protect assets
• Review creditor needs
• Plan sales
• Address tax questions
• Communicate with interested persons
• Prepare the accounting
• Complete distributions

The personal representative should begin early, use date-of-death values, document the source of every material valuation, and correct the inventory when new information becomes available.

Estates involving business interests, uncertain ownership, substantial real estate, community-property questions, valuable collections, unusual investments, or disputed assets may require legal, tax, or appraisal assistance before the inventory is finalized.

Legal Disclaimer: This information is for educational purposes only and does not constitute legal advice. Arizona probate law is complex and varies based on individual circumstances. Always consult with a qualified probate attorney for guidance specific to your situation.

FAQ’s