What to Do After a Death in Arizona: Complete Checklist

When a parent, spouse or other loved one dies, the person named as successor trustee or personal representative suddenly inherits a long list of legal, financial and tax responsibilities, usually while grieving. Most of those duties are not obvious, many have deadlines, and some carry personal liability if they are done in the wrong order.

This is my checklist of the typical tasks that should be considered, and the actions that may need to be taken, after the death of an Arizona resident who had a revocable living trust. Not every item applies to every family. Use it as a roadmap, and talk to an Arizona probate and trust attorney before you transfer, sell or distribute anything.

1. The First Days After Death

Before any trust administration begins, someone needs to handle the immediate practical matters. If the decedent left written funeral or burial instructions, or prepaid arrangements, follow them.

• Make funeral and burial arrangements. Ask the funeral home to order certified copies of the death certificate. Most families need 8 to 12 copies, because banks, brokerage firms, insurance companies and title companies usually want their own certified copy.
• Secure the home and vehicles. Lock the house, collect keys and garage openers, stop newspaper delivery, and make sure no one removes property before it is inventoried. Do not let a vacant home sit uninsured.
• Secure valuables and records. Jewelry, firearms, cash, coins, precious metals, computers, phones and hardware wallets belong in a safe place until the trustee decides what to do with them.
• Care for pets and perishable property. Arrange temporary care for animals and deal with food, plants and anything that will spoil or be damaged.
• Notify Social Security. The funeral home usually reports the death. Social Security does not pay a benefit for the month of death, so any deposit for that month or later must be returned. Do not spend it.
• Protect against identity theft. Ask Equifax, Experian and TransUnion to place a deceased alert on the decedent's credit file, and cancel credit cards once automatic payments have been moved.

2. Locate and Verify the Trust and Will

• Find the original trust and the original will. The successor trustee must first obtain the decedent's original trust agreement and original pour-over will and determine whether there are any amendments or restatements. A later amendment can change the trustee, the beneficiaries or the distribution plan, so make sure you are working from the current version.
• Deliver the original will if you have it. Under A.R.S. §14-2516, a person who has custody of an Arizona decedent's will must deliver it with reasonable promptness to someone able to probate it, or to the court if no such person is known. Never write on, unstaple or destroy an original will.
• Find the other estate planning documents. Look for beneficiary deeds, vehicle beneficiary designations, life insurance policies, retirement account beneficiary forms, a list of digital accounts and passwords, and any letter of instructions.
• Confirm who the successor trustee is. The trust agreement names the successor trustee and says how a trustee accepts the job. Some trusts require a signed acceptance or a certification of trust before banks will deal with the new trustee.

3. Decide Whether an Arizona Probate Is Needed

A revocable living trust avoids probate only for the assets that were actually titled in the name of the trust, or that pass by a beneficiary designation, beneficiary deed or other non-probate transfer. Any asset still titled in the decedent's individual name at death is a non-trust asset, and a probate may be required to move it into the trust under the pour-over will.

• Small estates may avoid a formal probate. Arizona allows heirs to collect personal property by affidavit when the value of the decedent's personal property subject to probate does not exceed $200,000, and to transfer Arizona real property by affidavit when its value does not exceed $300,000, after waiting periods and other requirements are met. See A.R.S. §14-3971.
• Larger non-trust assets usually require probate, and the court will appoint a personal representative to collect those assets and deliver them to the trustee.
• Sometimes probate is a good idea even when it is not required. A probate lets the personal representative publish notice to creditors. Under A.R.S. §14-3801 and A.R.S. §14-3803, claims of creditors who receive proper notice are generally barred if not presented within four months after first publication. Without that process, creditors generally have up to two years after death. If the decedent had significant debts, a lawsuit or a business with liabilities, that shorter cutoff can be valuable.
• Creditors and the trust. The probate estate is primarily liable for the decedent's debts. If probate assets are not enough, A.R.S. §14-10505 makes the assets of the decedent's revocable trust available to pay the decedent's creditors, administration expenses and funeral expenses.
• Other reasons for a probate. A probate estate is a separate taxpayer, which can help with income tax planning, and a court-supervised process can resolve family disputes and questions about the validity of documents.

Read more in our article about the Arizona probate process.

4. Notify the Trust Beneficiaries

This is the deadline many trustees miss. Under A.R.S. §14-10813, within 60 days after a revocable trust becomes irrevocable because of the trustmaker's death, the trustee must notify the qualified beneficiaries of the trust's existence, the identity of the trustmaker, their right to request a copy of the trust instrument, and their right to receive the trustee's reports.

The same statute requires the trustee to keep the qualified beneficiaries reasonably informed about the administration of the trust and to send reports of the trust property, liabilities, receipts and disbursements, including the source and amount of the trustee's compensation. Send the 60-day notice in writing and keep proof of when and how you sent it.

5. Inventory Every Asset

All assets must be located, valued and preserved, and the trustee should prepare a complete and accurate inventory. The inventory is needed:

• To determine whether a probate is required for non-trust assets.
• To determine whether federal estate tax is due or a federal estate tax return should be filed.
• To identify sources of cash to pay bills, taxes and expenses.
• To divide a married couple's trust into separate trusts, such as a Marital Trust and a Family Trust, if the trust requires it.
• As the starting point for the required appraisals.
• To determine which assets are encumbered by mortgages, liens or other debt.
• To give the surviving spouse, the beneficiaries and the trustee a clear picture of what exists.

Good places to look include the decedent's last two years of income tax returns (the 1099s reveal bank and brokerage accounts), bank statements, mail, email, the county assessor and recorder websites, the Arizona Department of Revenue's unclaimed property search, and the decedent's phone and computer. Under Arizona's version of the Revised Uniform Fiduciary Access to Digital Assets Act, A.R.S. §14-13101 and following, a trustee or personal representative can request access to many online accounts and digital assets.

6. Collect Benefits Owed to the Decedent and Survivors

The surviving spouse or successor trustee should collect the benefits owed to the decedent and to the decedent's survivors. These may include:

• Final wages, accrued vacation or sick pay, bonuses, commissions, and retirement or disability income from Social Security or an employer.
• Funeral and death benefits from Social Security, the Department of Veterans Affairs, unions, fraternal organizations or employment agreements. A surviving spouse, or in some cases a child, may be eligible for the one-time $255 Social Security lump-sum death payment and for monthly Social Security survivor benefits.
• Reimbursement of medical expenses from health insurance or Medicare supplemental insurance, group or association life and disability benefits, and workers' compensation claims.
• Life insurance of every kind: paid-up policies no longer requiring premiums, policies through a bank, credit union or fraternal organization, credit life insurance on a mortgage, car loan or credit card, term riders and accidental death riders on other policies, and accidental death coverage provided by travel insurance or a credit card used to buy a travel ticket.
• Death benefits payable from policies owned by an irrevocable life insurance trust, or from business insurance that funds a buy-sell agreement.
• Retirement accounts and annuities. IRAs, 401(k)s and annuities pass by beneficiary designation, not under the trust, unless the trust is the named beneficiary. Most non-spouse beneficiaries must empty an inherited retirement account within 10 years, and a surviving spouse has special rollover choices. If a trust is the beneficiary, the trustee generally must give the plan administrator a copy of the trust or a list of beneficiaries by October 31 of the year after death.

7. Appraise Assets and Capture the Stepped-Up Basis

An appraisal of the decedent's assets as of the date of death is necessary:

• For the inventory and accounting of any probate estate.
• To value assets for federal estate tax purposes and determine whether estate tax is due.
• To establish the new income tax basis the beneficiaries receive under Internal Revenue Code §1014. When an asset receives a stepped-up basis, the beneficiaries can usually sell it soon after death with little or no capital gain tax.
• To divide assets fairly among beneficiaries and among separate trusts.

The Treasury Regulations under Treas. Reg. §20.2031-1 and following give detailed valuation rules for estate assets. For example:

• Household and personal effects. If jewelry, silverware, art or similar items of artistic or intrinsic value are worth more than $3,000 in total, an expert appraisal is required. Treas. Reg. §20.2031-6.
• Real estate. A professional appraisal by a licensed appraiser is always recommended. A real estate agent's opinion of value is not an appraisal.
• Publicly traded stocks, bonds and mutual funds. Stocks and bonds are valued at the mean between the highest and lowest quoted selling prices on the valuation date. Treas. Reg. §20.2031-2. Brokerage firms will usually provide a date-of-death valuation on request.
• Closely held businesses, LLC interests and partnership interests. A formal business appraisal is required. Treas. Reg. §20.2031-2 and Treas. Reg. §20.2031-3.

8. Protect a Family Business or LLC

If the trust owns a business, an LLC or a partnership interest, the trustee must act immediately to preserve and protect it. A business can lose customers, employees and value in weeks. The trustee should:

• Decide whether to continue, sell or liquidate the business, then take the steps that decision requires.
• Review the operating agreement, partnership agreement, bylaws and shareholder agreements, and talk to the other owners to learn whether a buy-sell agreement or business insurance exists and whether the death triggered a purchase obligation.
• Update the managers or officers and the bank signers so bills, payroll and taxes keep getting paid. For an Arizona LLC, check whether the Arizona Corporation Commission records need to be updated.
• Contact the company's accountant for accounting and tax planning advice, including whether an S corporation election is at risk because a trust now owns the shares.

9. Change Title and Distribute Assets

• Real estate. Where the decedent was a trustee on title and a successor trustee takes over, the trustee usually records documentation, often an affidavit with a certified death certificate, in each county where the trust owns real estate. Arizona real property that passes by a beneficiary deed under A.R.S. §33-405 transfers outside the trust and outside probate.
• Remove the decedent's name from every asset, either as an individual (through probate or a small estate affidavit) or as trustee, unless a surviving co-trustee remains on title. Contact each bank, brokerage firm, insurance company and other asset holder, ask what they require, and provide proof of death and the new trustee's authority.
• Paperwork asset holders usually want. Title insurance companies, banks, life insurance companies and securities firms normally require a certified copy of the death certificate and a certification of trust (sometimes called a memorandum of trust) before they will change title or pay a death benefit.
• Follow the trust's distribution instructions. If the trust distributes real estate outright to a beneficiary, the trustee signs and records a deed from the trust to the beneficiary. The trustee should confirm that every other asset is reregistered in the beneficiary's name, or in the name of a continuing trust, as the trust instructs.
• Surviving spouse as trustee. If a surviving spouse is also a trustee, the asset titles can sometimes stay the same. Title often is changed anyway, for emotional reasons or because the trust requires its assets to be divided into two or more separate trusts at the first death for tax or family planning reasons.
• Do not distribute too early. Keep enough in reserve to pay the decedent's debts, final expenses, income taxes, any estate tax and the costs of administration. A trustee who distributes everything and then cannot pay a valid claim can be personally liable.

10. Income Tax Rules Once the Trust Becomes Irrevocable

While the trustmaker was alive, a revocable trust was a grantor trust that used the trustmaker's Social Security number and reported its income on the trustmaker's personal return. At death, the trust becomes irrevocable and its grantor trust status ends.

• Get a new tax ID number. The irrevocable trust needs its own federal employer identification number (EIN). Give the new number to every bank and brokerage firm so income is reported to the trust, not the decedent.
• File IRS Form 56. Form 56 notifies the IRS of the fiduciary relationship so tax notices go to the trustee.
• File annual fiduciary income tax returns. The trust files federal Form 1041 and Arizona Form 141AZ for each year it has income. A trust is normally a calendar-year taxpayer.
• Consider the §645 election. Under IRC §645, the trustee (and the personal representative, if there is one) can elect to treat the revocable trust as part of the decedent's estate for income tax purposes. The election permits a fiscal year and other estate-only tax benefits, and is made on Form 8855 by the due date of the first Form 1041.

11. Splitting a Married Couple's Trust After the First Death

Many joint living trusts, especially older ones, require the trustee to divide the trust assets at the first spouse's death to minimize the estate tax on the couple's combined estate. This is generally done with a Marital Trust and a Family Trust (sometimes called a Bypass or Credit Shelter Trust).

• The Marital Trust is irrevocable and holds assets that qualify for the marital deduction under IRC §2056. Its assets are generally retitled in its name when it is funded.
• The Family Trust is irrevocable and holds the remaining assets of the deceased spouse, sheltered by the deceased spouse's estate tax exemption.
• Some newer trusts use a disclaimer approach instead, where the surviving spouse decides after death whether to fund a Family Trust by disclaiming assets. A qualified disclaimer generally must be made in writing within nine months after death under IRC §2518 and Arizona's disclaimer statutes, A.R.S. §14-10001 and following. Once the surviving spouse accepts the assets or their benefits, the disclaimer may be lost.

Find more on how a married couple's trust works after the first death in our Arizona Wills, Trusts & Estate Planning Articles.

Pecuniary vs. fractional share funding formulas

The Marital Trust and Family Trust are usually funded using either a pecuniary formula or a fractional share formula. The choice is made in the trust document, and it has real tax consequences.

• Pecuniary formula (a fixed dollar amount). Funding a pecuniary amount with assets that have appreciated after death triggers capital gain. Treas. Reg. §1.1014-4(a)(3). Losses on assets used to fund a pecuniary amount from a trust may be disallowed under IRC §267 unless a §645 election is in effect, and funding with income in respect of a decedent (such as unpaid wages or installment notes) can accelerate the tax on that income under IRC §691.
• Fractional share formula (a fraction of each asset). It does not trigger capital gain or accelerate income in respect of a decedent, but it can be harder to administer because each trust owns a fraction of every asset.

How long after death are the trusts funded?

Funding is not completely final until the values of all assets are fixed, and values are not fixed until they are final for estate tax purposes. That process includes:

• Choosing the valuation date: the date of death, or the alternate valuation date six months after death under IRC §2032. The alternate valuation date is available only if it decreases both the value of the gross estate and the estate tax due.
• Filing the federal estate tax return, Form 706, which is due nine months after death unless an extension is obtained. IRC §6075.
• Waiting for the IRS to accept the return. The IRS now issues an estate tax closing letter only on request and for a user fee; many practitioners rely on an IRS account transcript instead. Values are finally fixed when the statute of limitations for assessment expires, generally three years after the return is filed. IRC §6501.

During the gap between death and final funding, the trustee administers the assets as a single trust, keeps careful records of income and expenses, and allocates income and appreciation among the separate trusts as the trust document requires.

12. Federal Estate Tax, Portability and Payment Options

Arizona has no state estate tax and no inheritance tax. The federal estate tax exemption is $15,000,000 per person for deaths in 2026 under IRC §2010, as amended by the One Big Beautiful Bill Act, and it is indexed for inflation in later years. Most Arizona families will owe no federal estate tax.

If estate tax is due, it is generally due nine months after death. Options for paying it include:

• Section 303 stock redemption. If stock of a corporation included in the estate is worth more than 35% of the gross estate minus certain deductions, the corporation can redeem enough stock to pay death taxes, funeral and administration expenses without the redemption being taxed as a dividend. IRC §303.
• Section 302 redemption. If the §303 test is not met, a redemption may still qualify for sale or exchange treatment under IRC §302, but the family attribution rules make this harder for family businesses.
• Section 6166 installment payments. If a closely held business is worth more than 35% of the adjusted gross estate, the executor can elect to pay the estate tax attributable to the business over as long as 14 years: interest only for up to the first five years, then up to 10 annual installments. Interest is charged at 2% on the tax attributable to an inflation-adjusted first portion of the business value and at 45% of the IRS underpayment rate on the rest. IRC §6166. (Older checklists say 4%. That rate no longer applies.)
• Section 6161 extension. The IRS can extend the time to pay estate tax for reasonable cause, for up to 10 years in some cases. Interest accrues at the IRS underpayment rate. IRC §6161.

Older estate administration checklists also list "flower bonds," which were special Treasury bonds that could be redeemed at face value to pay estate tax. The last flower bonds matured in 1998, so they are no longer an option.

If a Form 706 is required or a portability election is being made, hire a CPA or attorney experienced in preparing estate tax returns. It is not a do-it-yourself return.

13. Other Tax Tasks for the Trustee and the Accountant

• File the decedent's final income tax returns. The decedent's final federal Form 1040 and Arizona Form 140 cover January 1 through the date of death and are due April 15 of the year after death. A surviving spouse can usually file a joint return for the year of death.
• Check for unfiled prior-year returns and any balance owed to the IRS or the Arizona Department of Revenue.
• Estimated tax payments. Determine whether the decedent made quarterly estimated tax payments and whether the surviving spouse should continue them.
• Property taxes. Pay real property taxes on property owned by the trust or the decedent before the due dates. Arizona property taxes are paid in two installments, due October 1 and March 1, and become delinquent after November 1 and May 1.
• Tax ID numbers. Obtain an EIN for every trust that becomes irrevocable or is created at death, including any Marital Trust and Family Trust.
• Cash needs. Determine how much cash will be needed to pay all liabilities, expenses and taxes before making distributions.
• Tax elections. Make any available elections, such as the §645 election, the portability election, the alternate valuation date and the choice to deduct administration expenses on the estate tax return or the income tax return.
• Other trusts. Determine whether the decedent created any charitable trusts, irrevocable life insurance trusts or other trusts that affect the decedent's or the estate's tax liability.
• Unused tax attributes. Determine whether the decedent had unused capital losses, net operating losses or charitable deduction carryovers. Most of a decedent's own carryovers can be used only on the final return and are lost after that, so plan the final return carefully.

14. Insurance, Mail, Lawsuits, Receipts and Reports

• Mail. If there is no surviving spouse, ask the Post Office to forward the decedent's mail to the trustee so that statements, bills and refund checks are not missed.
• Insurance. The trustee is responsible for maintaining the trust assets. Review the homeowner's, auto, rental property, liability, umbrella, business and other insurance to make sure coverage is adequate and stays in force until the assets are distributed. Many homeowner's policies limit coverage on a home that is vacant for 30 or 60 days, so tell the insurer.
• Health insurance. If a surviving spouse or children were covered under the decedent's health plan, make sure their coverage continues, through COBRA if necessary.
• Notify insurers of title changes when assets are retitled to an irrevocable trust or a beneficiary.
• Lawsuits. Determine whether any lawsuits are pending by or against the decedent or a business or property the decedent owned, and whether the estate has a claim for the decedent's wrongful death. These claims have strict deadlines.
• Receipts. Get a signed receipt from every beneficiary who receives a distribution from the trust, and, at the end of the administration, a release where appropriate.
• Reports to beneficiaries. The trustee must keep the beneficiaries reasonably informed and provide reports under A.R.S. §14-10813, including a final report when the trust ends. If continuing irrevocable trusts are created after death, the trust agreement may require regular reports for many years.
• Keep a separate trust bank account. Run every receipt and payment through a trust account. Never mix trust money with the trustee's own money.

15. Common Trustee Mistakes

• Missing the 60-day beneficiary notice under A.R.S. §14-10813.
• Distributing assets before debts, expenses and taxes are paid or reserved for.
• Failing to get date-of-death appraisals, which leaves the beneficiaries unable to prove their stepped-up basis when they sell.
• Skipping the portability election after the first spouse's death.
• Assuming everything is in the trust. Accounts and real estate left in the decedent's individual name may require a probate.
• Letting insurance lapse on a vacant house or an inherited car.
• Commingling trust money with personal money, or paying the trustee without documenting the time spent. Arizona allows a trustee reasonable compensation under A.R.S. §14-10708 unless the trust says otherwise, but it must be reasonable and disclosed in the trustee's reports.
• Treating one beneficiary more favorably than the others. A trustee owes every beneficiary a duty of loyalty and impartiality.

16. Frequently Asked Questions

What should I do first when a loved one dies in Arizona?

Handle the funeral arrangements, order 8 to 12 certified death certificates, secure the home, vehicles and valuables, and find the original trust and will. Do not move money, sell property or distribute anything until you know who has legal authority and what the documents say.

Does a living trust always avoid probate?

No. A trust avoids probate only for assets that were titled in the name of the trust or that pass by beneficiary designation, beneficiary deed or another non-probate transfer. Assets left in the decedent's individual name may require a small estate affidavit or a probate.

What do I do with the original will if there is a trust?

Under A.R.S. §14-2516, the person who has the original will must deliver it promptly to someone able to probate it, or to the court. If no probate is needed, keep the original will in a safe place with the trust records in case it is needed later.

How soon must the trustee notify the beneficiaries?

Within 60 days after the trust becomes irrevocable at the trustmaker's death. The notice must tell the qualified beneficiaries about the trust, the identity of the trustmaker, their right to request a copy of the trust instrument and their right to the trustee's reports.

Will the estate owe federal estate tax?

Probably not. For deaths in 2026, the federal exemption is $15,000,000 per person, and a married couple using portability can shelter up to $30,000,000. Arizona has no estate or inheritance tax.

Should we file an estate tax return if no tax is owed?

If the decedent was married, usually yes. Filing Form 706 and electing portability preserves the deceased spouse's unused exemption for the surviving spouse. Rev. Proc. 2022-32 generally allows a late portability election up to five years after death when no return was otherwise required.

What is a stepped-up basis, and why does it matter?

Most assets a person owns at death get a new income tax basis equal to their value at death. If a beneficiary later sells the asset, capital gain is measured from that new value. In Arizona, both halves of a married couple's community property generally get a new basis at the first spouse's death. Date-of-death appraisals prove the new basis.

Does the trust need its own tax ID number?

Yes. Once the trustmaker dies, the trust is irrevocable and must obtain its own EIN, file Form 1041 and Arizona Form 141AZ for each year it has income, and stop using the decedent's Social Security number.

When is the decedent's final income tax return due?

The final federal Form 1040 and Arizona Form 140 are due April 15 of the year after the year of death. A surviving spouse can usually file a joint return for the year of death.

Who pays the decedent's debts?

The decedent's probate estate pays first. If probate assets are not enough, Arizona law makes the revocable trust's assets available to pay the decedent's creditors, funeral expenses and administration expenses. Family members generally are not personally liable for a decedent's debts unless they co-signed or guaranteed them. A trustee who distributes assets before paying valid claims, however, can become personally liable.

How long does it take to settle an Arizona trust?

A simple trust with a house and a few accounts can often be settled in six to twelve months. Trusts that require a Form 706, own a business, have disputes among beneficiaries or continue for a surviving spouse or children can take years.

Can a surviving spouse leave the trust assets titled the way they are?

Sometimes. If the surviving spouse is already a co-trustee and the trust does not require a split into separate trusts, title may not need to change. If the trust requires a Marital Trust and Family Trust, the assets must be divided and the irrevocable trust must get its own EIN.

Is the successor trustee paid?

Under A.R.S. §14-10708, a trustee is entitled to reasonable compensation unless the trust document says otherwise. Many family member trustees choose to waive compensation. A trustee who is paid must report the compensation to the beneficiaries.

Do I need a lawyer to administer a trust?

The law does not require one, but a trustee is a fiduciary who can be held personally liable for mistakes. An hour or two with an experienced Arizona trust and probate attorney at the start usually prevents the expensive errors on this checklist.

Arizona Probate and Trust Attorney

If you have questions about an Arizona probate, call Arizona probate attorney Richard C. Keyt, attorney and former CPA, at 480-664-7472, or book a free office, phone or Zoom video consultation.

To hire Richard C. Keyt to handle an Arizona probate, complete our Arizona Probate Questionnaire.

If you have not done your own estate plan, do not leave your family a probate and a long to-do list. See the 36 documents and services we provide when we prepare a custom Arizona estate plan with a revocable living trust, or start with our Arizona Estate Plan Questionnaire.

This checklist is general information, not legal or tax advice for your situation. Laws, exemption amounts and deadlines change; consult an Arizona attorney and a qualified tax advisor before acting. © 2026 KEYTLaw, LLC.