Why do I need to create an estate plan?

Ensuring you have an estate plan is crucial for individuals wishing to dictate how their assets are distributed, irrespective of age or health status. We offer expert guidance to help you craft the appropriate estate planning strategies tailored to your objectives. Whether you're focused on securing medical provisions for your later years, navigating potential estate tax implications, supporting charitable causes, or facilitating the seamless transfer of a family enterprise, our team is here to assist you. Reach out to our estate planning law firm today to connect with experienced professionals who can address your specific needs.

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Essential Estate Planning Documents:

Last Will and Testament

An Arizona estate planning attorney will emphasize that your Will forms the cornerstone of your estate plan. It should outline the distribution of your assets upon your demise and designate a guardian for your minor children. Your Will communicates your wishes to your family members and holds significant importance over a revocable living trust.

Health Care Power of Attorney (POA)

In the event of incapacitation due to illness or injury, this document authorizes someone to make medical decisions on your behalf. It is arguably the most critical power of attorney, potentially making the difference between life and death. Having a designated health care agent and medical power of attorney is paramount and should be included in your estate planning checklist when consulting with estate planning attorneys.

Durable Power of Attorney (POA)

Granting authority to manage your finances in case of incapacity, this document enables the management of property, bank accounts, investments, bills, insurance policies, tax returns, government benefits, and other financial affairs.

Revocable Living Trust Agreement

Offering a streamlined and private method of property transfer outside probate court, this agreement expedites the distribution of assets to beneficiaries. However, establishing a trust may not suit all clients depending on their situation, and some assets do not necessarily need to be held in trust to bypass probate.

Additional Components:

Your estate planning process may extend to setting up retirement benefits such as a 401(k) plan or life insurance policy. These financial instruments serve to provide future support to your beneficiaries or dependents.

What is the difference between a Will and Trust?

One big difference between the two is in how and when they take effect. Wills don’t go into effect until you pass away, whereas a Trust is effective immediately upon signing and funding it. 

It may be easier to think of a Will as a “simple” document. Wills allow you to: 

• Name guardians for kids and pets

• Designate where your assets go

• Specify final arrangements

While it is an easier process, the simplicity of a Will does come with some drawbacks. For example, Wills offer somewhat limited control over the distribution of assets. They also most likely have to go through some sort of probate process after you pass away.

A Trust is a bit more complicated, but can provide some great benefits. Trusts: 

• Offer greater control over when and how your assets are distributed

• Apply to any assets you hold inside the Trust

• Come in many different forms and types

Is Future Planning Essential for Everyone?

Regardless of your net worth, individuals residing in Arizona should prioritize estate planning. Having a comprehensive legacy planning checklist is indispensable.

Consider this scenario: Even if you have a modest income or few high-value assets, an estate plan is imperative to ensure that your finances and personal possessions are distributed according to your wishes.

As previously highlighted, your plan should outline arrangements for the care of your minor children in the event of your passing. This becomes particularly critical if the other parent is not involved in your life or the lives of your children. Even if they are involved, specifying guardianship in your will remains essential, as both you and the other parent may pass away simultaneously. Failure to designate guardians for your children will leave the decision to the probate court.

Consider this scenario: Suppose you are single without children. In the absence of an estate plan, your assets will default to your parents. However, by creating a will, you can designate your assets to be inherited by your preferred beneficiary, such as a close friend, partner, or charitable organization.

Why use an Estate Planning Attorney?

While you may be tempted to undertake estate planning on your own, it is advisable to enlist the services of an attorney. An attorney can evaluate your financial circumstances and tailor the most suitable estate planning documents for your specific needs. After all, each client's estate planning requirements are unique.

Moreover, they can periodically review your estate plan to ensure its alignment with evolving regulations and laws that may affect your objectives.

Additionally, your attorney can assist in updating your life insurance and 401(k) documentation over time. It is common for individuals to designate their parents as beneficiaries initially but overlook updating the beneficiaries to their spouse and children after getting married and starting a family.

How can we help?

You don't want to just create estate planning forms, you want to work with an attorney you trust. Schedule a free consultation today if you need help with your estate planning documentation!

Call us today! (520) 437-0030