(What the New $200K / $300K Small-Estate Law Means for Families)
1. Standing at the Desert Crossroads
Navigating a loved one’s estate can feel overwhelming, like standing at a desert crossroads. One path leads to a smooth, quick process, while the other—probate—can be a long, costly journey.
The great news for Arizona families is that probate isn’t always required. In fact, a new law taking effect on September 26, 2025, makes it even easier for more families to avoid court altogether by raising the limits for what qualifies as a “small estate.”
2. When Probate Is Required in Arizona
Probate is mandatory when a person dies with assets only in their name and those assets can’t legally transfer without court approval. Common examples include:
- A house with no joint owner or beneficiary deed.
- Bank or investment accounts with no named beneficiary.
- Cars, businesses, or collectibles owned by one person alone.
Dollar limits before Sept. 26, 2025:
- Personal property: more than $75,000
- Real estate: more than $100,000
Dollar limits after Sept. 26, 2025:
- Personal property: more than $200,000
- Real estate: more than $300,000
(Arizona Revised Statutes § 14-3971)
If the estate crosses those limits, there’s no shortcut—you’re on the “probate required” trail, whether you like it or not.
3. When Probate Can Be Avoided in Arizona
Thankfully, not every estate needs probate. Families can avoid it when assets are:
- Placed in a Revocable Living Trust (a legal plan that skips probate).
- Owned as community property with right of survivorship or joint tenancy.
- Bank, retirement, or brokerage accounts with named beneficiaries.
- Life insurance or annuities with named beneficiaries.
- Under the new small estate limits ($200K / $300K after Sept. 26, 2025).
Think of these as Arizona’s “express checkout lanes.” If you qualify, you don’t have to stand in the long line.
4. Arizona’s Small Estate Affidavit: The Shortcut Explained
An affidavit is a sworn statement in writing. In this case, Arizona law allows heirs to sign a simple form—under oath—saying they are entitled to collect the deceased person’s property without a full probate case. By signing the affidavit, they become the owner of the asset.
- Personal property affidavit: For things like bank accounts or vehicles, if under the limit.
- Real property affidavit: For homes or land, if under the limit.
Do you need a lawyer to do it?
Technically, no. The law does not require an attorney to prepare or file a small estate affidavit. Families can complete the forms themselves.
But be careful:
- The forms must be filled out correctly and filed in the right court or agency.
- Mistakes can delay transfers or even open the door to disputes.
- If there are disagreements in the family, an attorney’s guidance is strongly recommended.
For many families, a lawyer prepares the affidavit to make sure it’s done properly the first time—and to avoid surprises later.
This is the difference between a long desert trek and a smooth drive down the highway.
5. When Probate Sneaks In (Even If You Think It Won’t)
Even with higher limits, probate sometimes becomes unavoidable:
- Selling real estate may require probate to clear title.
- Hidden assets (like old savings bonds or forgotten accounts) need a court-appointed personal representative.
- Family disputes can drag even simple estates into probate.
- Pending lawsuits against the estate usually require court oversight.
In other words, you may think you’re on the easy trail—only to find a locked gate halfway in.
6. Real-Life Stories
The House That Held Things Up
One client’s father carefully set up Payable on Death (POD) accounts, joint ownership, and even created a trust. But a rental house was left out. The family assumed probate wouldn’t be needed—but the sale of that property required it. Result: nearly a year of delay over one missing deed.
The Car That Triggered Probate
Another family thought Dad’s estate was too small for probate. But his classic car was appraised at more than $200,000. That single vehicle tipped the estate into probate.
Lost Original Will
In another estate, siblings thought they had Mom’s original Will, but the Court rejected the Affidavit because it wasn’t the original Will. As a result, they could not use the affidavit procedure and had to do a formal probate.
7. The Emotional and Financial Impact
Probate isn’t just paperwork—it’s waiting. Families often describe it like a monsoon storm: you know it’ll eventually pass, but in the meantime, you’re stuck inside.
Time: A simple Arizona probate often takes 6–12 months. If there are disputes or complex assets, it can stretch to 1–2 years or more.
Money: Probate typically consumes $2,000-$7,500 in court fees, attorney fees, and costs like appraisals and notices.
Stress: Even when uncontested, probate ties up families in deadlines, filings, and court oversight. Disagreements can add months—and thousands of dollars—in extra expenses.
Arizona’s new thresholds will let many families use the faster, cheaper small estate process instead. But when probate is required, the true cost is both financial and emotional.
8. FAQ: Quick Answers for Arizona Families
Q: Does every estate go through probate in Arizona?
No. Assets in Trusts, joint tenancy, Payable on Death(POD)/Transfer on Death(TOD) accounts, or under the new small estate limits can avoid probate.
Q: What are the new Arizona small estate limits (2025)?
As of Sept. 26, 2025: personal property up to $200,000 and real property up to $300,000 can transfer by affidavit.
Q: What happens if an estate has both probate and non-probate assets?
It’s common. Some assets may transfer by affidavit or beneficiary, while others require probate.
Q: Can an estate that qualifies for a small estate affidavit still go through probate?
Yes. Sometimes families choose probate if disputes exist or to formally resolve debts. If you do not have the original Will or original Death Certificate, you will need to go through probate court.
9. Choosing the Right Trail in Arizona Probate
So—is probate always required in Arizona?
- Yes, if assets exceed $200K (personal property) or $300K (real estate) after Sept. 26, 2025—or if assets are titled only in the decedent’s name.
- No, if the estate qualifies under the new small estate limits, or assets were planned with Trusts, joint ownership, or beneficiary designations.
- Sometimes, probate sneaks in because of a single asset—or because family conflict forces it.
At Rahnema Law, we help Arizona families stand at that desert crossroads and pick the right trail. Sometimes it’s the quick path of a small estate affidavit. Sometimes it’s the longer probate road. Either way, we guide you through with clarity, compassion, and as few detours as possible.
Because in probate, as in the desert, having the right guide makes all the difference.
Legal Disclaimer: This information is for educational purposes only and does not constitute legal advice. Arizona probate law varies based on individual circumstances. Always consult with a qualified probate attorney for guidance specific to your situation.