Nonprobate Transfer

Probate & Legal

The passage of assets at death outside probate through beneficiary designations, trusts, POD accounts, or similar arrangements.

A nonprobate transfer is any asset that passes directly to a named recipient at death. It does not go through probate. Common examples include life insurance policies and retirement accounts with named beneficiaries. Pay-on-death bank accounts, revocable living trust assets, and beneficiary deeds also qualify.

Why Nonprobate Transfers Matter

Arizona law (A.R.S. § 14-6101) classifies these transfers as nontestamentary. They operate separately from a will. The beneficiary designation on the account controls who receives the asset. It does not matter what the will says. This is why estate planners recommend reviewing beneficiary designations regularly.

Creditor Liability

Nonprobate transfers do not always shield assets from the deceased person's debts. Under A.R.S. § 14-6102, creditors can reach nonprobate transferees in some cases. This happens when the probate estate cannot cover allowed claims and statutory allowances. Creditors can collect up to the value each transferee received. The principal trust transferee bears liability first. Other transferees share liability proportionally after that.