Use of Small Estate Affidavit for Bank Accounts

I often get asked by an adult child if he or she can close out a small bank account using the "Affidavit for Collection of Personal Property." (The one that is authorized by A.R.S. 14-3971(B).) This works IF the person signing the affidavit is actually entitled to receive the property. The tricky part happens when the decedent had multiple children (or a surviving spouse and children). No one person can then sign that Affidavit.

If fewer than all people entitled to receive the estate sign the Affidavit, then it could be construed as theft (and I have actually seen that happen before).

If there is a pourover will that transfers the estate (including the small bank account) to a trust, then at least an argument could be made that the trustees can sign the Affidavit in their capacity as trustees. This seems technically correct, but I have not had very good luck actually getting banks to accept this.

I would certainly welcome any input on this issue.

I hope this information is helpful. Paul Deloughery
(You can contact me directly by email at paul@delougherylaw.com or phone at 602-443-4888. For more information, visit www.delougherylaw.com)

The information in this blog is general in nature and is not intended to address any particular situation.