Q: How to handle intestate estate and tax liabilities in Arizona?
My father passed away intestate in Arizona and owned a small manufacturing business that makes cabinets and does epoxy floor coatings. He had an unspecified tax liability and no other significant assets, except for a small personal bank account. How should I proceed with handling his estate and resolving the tax liabilities?
A: The first step is to determine the value of the assets in your father's estate and also the amount of the debts. Your father's CPA may be able to help. Or you may need to hire a business appraiser or business broker to determine the business value. If there is no real property and the value of the estate assets is under $75,000.00, your father's estate might be administered simply by a small estate affidavit. But it is more likely that the estate's value will be greater and, if so, a probate might be needed to administer his estate. Before taking any action, I recommend discussing your findings concerning assets and debts with a probate attorney. The attorney will make recommendations as to whether a probate is appropriate. If so, the attorney can assist you in being court appointed as Personal Representative (PR). The PR has the authority to sell assets, negotiate debts and fully administer the estate. As you note, part of estate administration would be the handling of taxes. For small estates, taxes are usually not a large concern. Your father's CPA will know what is needed and can handle that aspect of estate administration for you.
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