Estate Planning in Arizona

Estate planning is the process of arranging the management and transfer of your assets during your life in preparation for future incapacity or death, while minimizing taxes and other expenses for your beneficiaries. It is a crucial process for anyone over the age of 18, regardless of wealth. 

Because of the multifaceted nature of estate planning, most people consult with professionals to help navigate the complexities and ensure compliance with personal goals and legalities. Arizona Fiduciary Services is well experienced at helping in this arena. 

What follows are the key considerations and basic steps toward building a successful estate plan. It goes beyond having a will and typically includes additional legal documentation to ensure your wishes are known and carried out. 

• Last Will and Testament: A will outlines how your property and assets should be      distributed after your death and names an executor to manage the process. It is also where you name guardians for minor children or dependents.
• Trusts: A trust is a legal arrangement that holds assets for beneficiaries and is managed by a designated trustee. Trusts offer more control over how and when assets are distributed (e.g., preventing a spendthrift heir from mismanaging money) and can help avoid probate. A successor trustee is an institution or person that will administer the trust following the passing away or incapacitation of the original trustee. AKA backup trustee. In most cases, the backup is named by the trust creator. 
• Powers of Attorney (POA): These documents designate trusted individuals to make decisions on your behalf if you become incapacitated. A durable financial POA grants someone the authority to manage your financial affairs. A medical POA (or healthcare proxy/agent) allows someone to make healthcare decisions for you.
• Advance Directives (Living Will): A living will specifies your preferences for medical treatments and end-of-life care (like life support), providing guidance to your healthcare agent and doctors.
• Beneficiary Designations: For assets like life insurance policies and retirement      accounts (e.g., 401ks, IRAs), naming beneficiaries directly on the account forms ensures they pass to the intended individuals outside of the will and often avoid probate. 

Estate plans cover alot of financial, medical, and familial territory. Everything is important when you want your wishes to be understood and honored properly. Steps include the following: 

1. Inventory Your Assets and Debts: Compile a comprehensive list of everything you own (real estate, cash, investments, personal property) and any outstanding debts.
2. Identify Key Individuals: Choose people for critical roles, such as executor, trustee, guardians for children, and agents for your powers of attorney.
3. Determine Your Plan: Decide which documents are necessary for your situation (e.g., a simple will, various trusts).
4. Draft and Execute Documents: Work with an attorney or an online service to create the legal documents and ensure they are signed, witnessed, and notarized according to your state's laws.
5. Store Documents Safely: Keep all original, signed documents in a secure location  (like a fireproof safe) and make sure your executor and relevant fiduciaries know where to find them.
6. Review and Update Regularly: Update your plan after major life events such as marriage, divorce, birth of a child, or significant changes in assets or health. A general rule of thumb is to review the plan every three to five years.