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Rule 45. Conservator's Inventory, Budget, and Account

Arizona Revised Statutes AnnotatedArizona Rules of Probate ProcedureEffective: January 1, 2023

Arizona Revised Statutes Annotated
Arizona Rules of Probate Procedure (Refs & Annos)
Part VII. Rules that Apply Only to Guardianships and Conservatorships
Effective: January 1, 2023
17B A.R.S. Rules Probate Proc., Rule 45
Rule 45. Conservator's Inventory, Budget, and Account
Currentness
(a) Court Authority. The court may order a variation of this rule's requirements for an inventory, budget, or account, or the form thereof, if the court finds the variation is consistent with prudent management and oversight of the case.
(b) Date of Conservator's Appointment. For purposes of this rule, the conservator's appointment is the date the court first issues letters of appointment.
(c) Conservator's Inventory.
(1) Timing. A conservator must file an inventory of a protected person's estate no later than 90 days after the date of the conservator's appointment.
(2) Contents. The inventory must contain the information specified in A.R.S. § 14-5418(A).
(3) Required Attachments.
(A) Bank and Securities Accounts. For each bank or securities account listed in the inventory, the conservator must attach to the inventory a complete copy of the statement that shows the balance of such account as of the date of the conservator's appointment.
(B) Real Property. For each parcel of real property listed in the inventory, the conservator must attach to the inventory document(s), such as an appraisal or a broker price opinion, showing the fair market value of the real property as of the date of the conservator's appointment.
(C) Tangible Personal Property. If the value of any tangible personal property listed in the inventory is based on an appraisal conducted by someone other than the conservator, the conservator must attach that appraisal to the inventory.
(4) Amendments. If, after filing the inventory but before filing the conservator's first account, the conservator discovers an additional asset or discovers that the value of an asset on the inventory, whether appraised or not, is erroneous or misleading, the conservator must file an amended inventory. If the conservator files an amended inventory because the conservator has discovered an additional asset and if the additional asset is not already subject to a court-ordered restriction, the conservator must, with the amended inventory, file a petition requesting the court to either increase the amount of the conservator's bond or enter an order restricting the sale, conveyance, or encumbrance of the additional asset.
(5) Consumer Credit Report. The conservator must file the consumer credit report required by A.R.S. § 14-5418(A) with the inventory.
(d) Conservator's Budget.
(1) Necessity and Timing. The conservator must file an initial budget no later than the date the conservator's inventory is due. The conservator must file a subsequent budget with each account.
(2) Contents and Format. The budget must include a reasonable estimate of all anticipated income and expenditures related to the protected person's estate. The conservator must use Form 5, 6, or 7, as applicable.
(3) Amendments. The conservator must file an amended budget no later than 30 days after reasonably projecting the expenditures for any specific category will exceed the budget by a threshold stated in the instructions to Form 5.
(4) Copies to Interested Persons. The conservator must a provide a copy of the budget, including any amended budget, to all persons entitled to notice of the conservator's accounts under A.R.S. § 14-5419(C).
(5) Presumptions, Objections, and Court Action.
(A) Presumption; Objection. A timely filed budget is presumed reasonable unless there is an objection. An interested person may file an objection no later than 14 calendar days after the budget or amendment was filed.
(B) Hearings and Resolving Objections. The court may summarily overrule the objection, order the conservator to file a response, or set a hearing on the objection. The court may set a hearing even in the absence of an objection. The conservator has the burden of proving that a contested budget item is reasonable, necessary, and in the best interests of the protected person.
(C) Court Action. If the court reviews the budget, it may approve, disapprove, or modify the budget to further the protected person's best interests.
(e) Conservator's Account.
(1) Timing. The conservator must file an annual account on or before the anniversary date of the issuance of the conservator's permanent letters of appointment.
(2) Required Attachments.
(A) Bank and Securities Account. For each bank or securities account listed on the ending balance schedule, the conservator must attach to the account a complete copy of the statement that shows the ending balance of such account.
(B) Real Property. For any real property that was sold during the account period, the conservator must attach to the account the final HUD-1 or final HUD-1A settlement statement or similar final settlement statement for the sale.
(3) Sustainability. The account must state whether the conservatorship's recurring expenses exceed its recurring income, and
(A) if so, whether the assets available to the conservator less the estate's liabilities are sufficient to sustain the conservatorship for the protected person's foreseeable needs; and
(B) if the estate is not sustainable, the conservator must include a discussion of the available options.
(4) First Account. The conservator's first account must reflect all activity relating to the conservatorship estate from the date of appointment through, and including, the last day of the 9th month after the date the conservator's letters of permanent appointment were issued, or other date set by the court.
(5) Later Accounts. All later accounts must reflect all activity relating to the conservatorship estate from the ending date of the most recently filed account through, and including, the last day of the 12th month thereafter, or other date set by the court.
(6) Final Account. Except as provided in A.R.S. § 14-5419(F) or as ordered by the court, the conservator must file a final account of the protected person's estate no later than 90 days after protected person's death or court order terminating the conservatorship. The final account must reflect all activity between the ending date of the most recently approved account and the date of termination of the conservatorship. The court may extend the date for filing the account or relieve the conservator from filing a final account.
(7) Format of Account. The conservator must use Form 6, 7, or 8, as applicable, unless the court allows the conservator to use Form 9. Nothing in this rule precludes the court from requiring an alternative form of account or, in appropriate circumstances, waiving an account.
(f) Motion for Additional Time. If the conservator is unable to comply with a deadline established by this rule or court order, the conservator must file a motion for additional time before the deadline. The motion must state why the conservator needs additional time and how much additional time is needed.
(g) Confidentiality. The court must maintain the inventory, the consumer credit report, the budget, and the account as confidential documents under Rule 8.

Credits

Added Dec. 12, 2019, effective Jan. 1, 2020. Amended Aug. 29, 2022, effective Jan. 1, 2023.
17B A. R. S. Rules Probate Proc., Rule 45, AZ ST PROB Rule 45
State Court Rules are current with amendments received through April 1, 2024. The Code of Judicial Administration is current with amendments received through April 1, 2024.
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