Arizona Laws 14-3906. Distribution in kind; valuation; method
A. Unless a contrary intention is indicated by the will, the distributable assets of a decedent‘s estate shall be distributed in kind to the extent possible through application of the following provisions:
Terms Used In Arizona Laws 14-3906
- Application: means a written request to the registrar for an order of informal probate or appointment under chapter 3, article 3 of this title. See Arizona Laws 14-1201
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Child: includes a person who is entitled to take as a child under this title by intestate succession from the parent whose relationship is involved. See Arizona Laws 14-1201
- Decedent: A deceased person.
- Devisee: means a person designated in a will to receive a devise. See Arizona Laws 14-1201
- Distributee: means any person who has received property of a decedent from that person's personal representative other than as a creditor or purchaser. See Arizona Laws 14-1201
- Fair market value: The price at which an asset would change hands in a transaction between a willing, informed buyer and a willing, informed seller.
- including: means not limited to and is not a term of exclusion. See Arizona Laws 1-215
- Person: means an individual or an organization. See Arizona Laws 14-1201
- Personal representative: includes an executor, an administrator, a successor personal representative, a special administrator and persons who perform substantially the same function under the law governing their status. See Arizona Laws 14-1201
- Property: includes both real and personal property. See Arizona Laws 1-215
- Will: includes a codicil and any testamentary instrument that merely appoints an executor, revokes or revises another will, nominates a guardian or expressly excludes or limits the right of an individual or class to succeed to property of the decedent passing by intestate succession. See Arizona Laws 14-1201
- Writing: includes printing. See Arizona Laws 1-215
1. A specific devisee is entitled to distribution of the thing devised to him, and a spouse or child who has selected particular assets of an estate as provided in section 14-2403 shall receive the items selected.
2. Any allowance in lieu of homestead or family allowance or devise of a stated sum of money may be satisfied by value in kind if the following are true:
(a) The person entitled to the payment has not demanded payment in cash.
(b) The property distributed in kind is valued at fair market value as of the date of its distribution.
(c) A residuary devisee has not requested that the asset in question remain a part of the residue of the estate.
3. For the purpose of valuation under paragraph 2 securities regularly traded on recognized exchanges, if distributed in kind, are valued at the price for the last sale of like securities traded on the business day prior to distribution, or if there was no sale on that day, at the median between amounts bid and offered at the close of that day. Assets consisting of sums owed the decedent or the estate by solvent debtors as to which there is no known dispute or defense are valued at the sum due with accrued interest or discounted to the date of distribution. For assets which do not have readily ascertainable values, a valuation as of a date not more than thirty days prior to the date of distribution, if otherwise reasonable, controls. For purposes of facilitating distribution, the personal representative may ascertain the value of the assets as of the time of the proposed distribution in any reasonable way, including the employment of qualified appraisers, even if the assets may have been previously appraised.
4. The residuary estate shall be distributed in kind if there is no objection to the proposed distribution and it is practicable to distribute undivided interests. In other cases, residuary property may be converted into cash for distribution.
B. After the probable charges against the estate are known, the personal representative may mail or deliver a proposal for distribution to all persons who have a right to object to the proposed distribution. The right of any distributee to object to the proposed distribution on the basis of the kind or value of asset the person is to receive, if not waived earlier in writing, terminates if the person fails to object in writing received by the personal representative within thirty days after mailing or delivery of the proposal.