Arizona Wills & Trusts Blog

Film About Trusts Wins Golden Globe for Best Drama

Estate of Denial: “The Descendants,” a family drama set in Hawaii, won the Golden Globe on Sunday night for best drama. George Clooney, who stars in the film as a father coming to grips with his wife’s impending death, won for lead actor in a drama.

Since our review published in November, our fans told us this is the best trust film ever released. The central theme is about a family trust and its trustee-advisor — played by George Clooney, no less – found their way to the silver screen last November in Alexander Payne’s film, “The Descendants.”

This is The Trust Advisor’s favorite film of the season, a depiction of what the trust industry is all about. This is a MUST see for anyone in the trust world.

Every multi-generational trust is a balancing act between the living and the dead, with the trustee in the precarious position of having to weigh the wishes of vanished grantors against the priorities of their heirs.

The film “The Descendants,” by the director of “About Schmidt” and “Sideways,” frames that balancing act against the lush landscape of Kauai, where the fictional King family have lived for decades on acreage held in trust.

Continue reading about “The Descendants”, a film highlighting trusts.

On the Net2016-12-13T20:33:36-08:00January 25th, 2012|Rich & Famous, Trusts|

Lull in Estate Tax May Trap Wealthy Americans

Investment News: Tax changes that President Barack Obama and Congress hammered out in the final days of 2010 discouraged clients from seeking estate-planning advice last year, even though estate lawyers argue there are many planning opportunities that shouldn't be missed.

The legislation that set a $5 million estate tax exemption for 2011 and 2012 has all but eliminated “estate tax avoidance” as a motivating factor for clients, according to 32% of estate-planning lawyers and financial advisers surveyed recently by WealthCounsel LLC.

In fact, tax avoidance dropped from being the No. 1 reason in 2010 that clients sought estate planning to fourth last year, according to the survey of 1,085 professionals.

“The Republican-led Congress has done an effective job of vilifying the estate or “death tax' as unfair,” said Matt McClintock, executive director of WealthCounsel. “So with the $5 million exemption, a lot of people breathed a sigh of relief because they said, “I don't have that much,' and it diminished concern for estate planning as motivated by the estate tax.”

Continue reading about the lull in estate tax trapping the wealthy.

On the Net2016-12-13T20:33:36-08:00January 17th, 2012|Estate Tax|

5 Estate Planning Mistakes You Don’t Want To Make

Mansfield Patch: A wise man once said, “If you don’t die before retirement chances are pretty good you’ll die sometime afterwards”. And while we all know and understand that death is a sad fact of life, we sometimes put off making decisions that will help our loved ones after we’re gone.

When Steve Jobs died last year, many financial pundits wondered whether his advisors had helped him set up an effective estate plan. Given the fact that Jobs famously resisted the advice of his doctors for several months while he explored other alternatives, some wondered if he might have acted similarly when it came to his estate planning. With a net worth estimated at nearly $7 billion, the stakes were large — his estate could have been hit with nearly $2.5 billion dollars in taxes. Further, Jobs was known as a very private person and it was quite possible that all his affairs could have been played out in detail at the probate courts for all the world to see. It turns out that Jobs plans were intact and it appears this helped his estate avoid many taxes, ensured his privacy and made his intentions clear to his surviving family and friends. And while we might not be able to relate to Steve Jobs at all, the reality is that it would be a major mistake to think that estate planning is just for the rich and famous.

Here are five examples of estate planning mistakes you may be making now:

1. You keep putting it off. If you postpone planning until it is too late, you run the risk that your intended beneficiaries — those you love the most […]

On the Net2016-12-13T20:33:36-08:00January 17th, 2012|Common Problems, Estate Planning|

Question: I made a Will, now what do I do with it? Where should I keep it and who should I tell about it?

Answer: You may have the best drafted, most well thought out Last Will and Testament, but it will be useless if no one can find it. There is no central database for Wills or estate plans. This means that the only way your loved ones will know about your Will and where to find it is if you tell them!

First, you should put your original Will and other estate planning documents in a safe place, like a safe deposit box. Tell the appropriate people that you have an estate plan and it can be located in your safe deposit box. You probably want to tell your spouse, children, parents or whoever would be the person searching for your estate plan should something happen to you. We also suggest making copies of your Will and other estate planning documents and giving them to person who you have picked to be responsible for administering your estate (your personal representative). Alternatively, you can scan the documents to your computer and email them to trusted people, or put the documents on a CD and give the CD to trusted people. This is an important step, not only with your Will, but also if you have healthcare directives or powers of attorney. If you created a Healthcare Power of Attorney, make sure you give a copy to the person you designated as your healthcare agent. That way the person knows they have been nominated as your healthcare agent, and know where to find the document giving them authority to make decisions […]

Richard Keyt2016-12-13T20:33:36-08:00January 12th, 2012|FAQ, Healthcare Directives, Powers of Attorney, Wills|

What is a Power of Attorney?

Question: I've heard the phrase Power of Attorney but I don't know what it means. Do I need a Power of Attorney?

Answer: A Power of Attorney is a legal document in which in a person (called a “principal”) delegates decision making authority to another person (called an “agent”). Powers of Attorney can be very broad giving the agent the ability to do every act that you could do yourself if you were able, or Powers of Attorney can be limited to cover only specific decisions and events.

When people refer to a Power of Attorney, they are usually talking about either Healthcare Powers of Attorney or Financial Powers of Attorney. As the name suggests, a Healthcare Power of Attorney allows the named healthcare agent to make medical and healthcare related decisions for the principal if the principal becomes incapacitated and unable to make decisions on their own. As long as you are able to make healthcare related decisions on your own, your healthcare agent will have no authority to make those decisions for you. A Healthcare Power of Attorney only becomes effective if you are incapacitated. A Financial Power of Attorney allows the agent to make financial decisions on behalf of the principal if the principal is unable to make those decisions on their own. This includes the power to manage financial assets, buy and sell property, pay the principal's bills and more. While your Financial Power of Attorney becomes effective if you become incapacitated, it can also become effective immediately if necessary. This may be a good idea for people who will be […]

Richard Keyt2022-11-12T08:11:52-08:00January 12th, 2012|FAQ, Powers of Attorney|

Question: What is estate planning? What documents make up an estate plan?

Answer: Simply put, estate planning is planning for your death or incapacity, including where you want your assets to go after your death.

A comprehensive estate plan should have the following primary documents:

Last Will and Testament: this is a legal document in which you name where you want your property to go after your death. Your Will also names a guardian for minor children, a conservator for the assets to be owned by minor children and/or incapacitated adults, and a personal representative to manage your estate.

Living Trust: like a Will, a Trust specifies how you want your assets to be distributed upon your death. Unlike a Will, a Trust allows you to control the distribution of the assets to your beneficiaries, instead of just giving it to them outright like you would with a Will. Your Trust names an individual or institution to manage the assets placed in trust (called a “trustee”). A Trust will help you avoid probate since the assets owned by the Trust are not part of your estate, so a probate is not required to transfer those assets. A Trust is also beneficial if you become incapacitated, since your trustee can immediately manage the trust and make sure your spouse and dependents are cared for. You can have both a Will and a Trust, or just a Will.

Healthcare Power of Attorney: this is a legal document which permits another person to make healthcare decisions for you if you are unable to do so yourself.

Richard Keyt2017-10-08T09:41:34-07:00January 10th, 2012|Estate Planning, FAQ|

Question: What is community property? Which U.S. states are community property states? What is the difference between community property and separate property?

Answer: Community property and separate property are two different ways that a married individual holds property. Only 9 states in the U.S. recognize community property: Arizona, California, Idaho, Louisiana, New Mexico, Texas, Washington and Wisconsin. Puerto Rico also allows property to be owned as community property.

Arizona Community Property vs. Separate Property

Community property is all property acquired during marriage, except property acquired by gift or inheritance, or property acquired after the service of a petition for divorce, legal separation or annulment if the petition results in a decree of divorce, legal separation or annulment. A.R.S. § 25-211.

Separate property is all real and personal property owned by an individual before marriage. Separate property is also property acquired during the marriage by gift or inheritance, or property acquired during the marriage, but after the service of a petition for divorce, legal separation or annulment provided that the petition results in a decree of divorce, legal separation or annulment. A.R.S. § 25-213.

Richard Keyt2016-12-13T20:33:36-08:00January 10th, 2012|FAQ|

Question: I've heard that my spouse and children will inherit my assets if I don't have a Will. If I want my spouse and children to inherit everything, why would I need a Will?

Answer: The idea that your spouse and children will get everything is just a general guideline, it may or may not happen in your particular situation. And, even where the law provides that your spouse and children will inherit your assets, it might not work like you think.

Arizona's laws of intestate succession generally provide that your spouse and/or children will inherit your assets upon your death. If your children are all children of your surviving spouse, then your surviving spouse would get your entire estate. However, if you have children that are not also children of your surviving spouse, one half of your separate property will pass to your surviving spouse and the other half of your separate property plus your entire one half interest in the community property will pass to your children. This could be a big problem for your surviving spouse. In Arizona, the majority of most married couple's assets are owned as community property. Community property is all property acquired during the marriage, except that property that was obtained via gift or inheritance. If you have children that are not children of your surviving spouse, this means that the bulk of your assets would go to your children, not your spouse. This could have serious financial implications for your surviving spouse. Relying on the laws of intestate succession gets even more dangerous if you have step-children. Arizona law does not provide for step-children, meaning your step-children will inherit […]

Richard Keyt2016-12-13T20:33:36-08:00January 10th, 2012|FAQ, Wills|

Why People Give to Charity

Financial Planning.com: When planners help clients manage their wealth, it is important to help them recognize the deep emotional sources of philanthropy. Hundreds of interviews over the years with philanthropists have led me to the notion of empathy and identifying with others as the key motives behind giving. Ask donors about an important gift and you will hear that the people they help are like themselves, their children, parents or other loved ones. We care for others as extensions of ourselves.

A day usually comes in your clients' lives when acquiring more wealth ceases to be so important. They then face the question of how to live next and impart to their children a moral biography. Most will want to give because giving is a natural source of happiness.

People always tell us they “want to give back.” They speak about how they were helped in life and often remember teachers and others who formed them. We have all received gifts. People who give back recognize twists in their life stories as grace or luck. They notice unmerited, unearned and unpredictable interventions in their life.

The wealthy often worry about how a large inheritance will affect their kids. Our research found they're giving larger percentages to charity, often through a family foundation or involving heirs in philanthropy. Some want to keep businesses or real estate in the family, but more of the wealthy feel the best use of their money is to give less to their kids and more to people who can benefit.

We all seek to shape the world, even if only our small part. We want to make a difference. We see ourselves as agents – […]

On the Net2016-12-13T20:33:37-08:00January 10th, 2012|Giving to Charity|

Financial and Estate Planning For Gay and Lesbian Couples

Delaware Online: For gay and lesbian couples, embracing a life as loving partners can be just as fulfilling, and just as challenging, as a marriage between a man and a woman.

When it comes to finances, though, such relationships can become even more challenging to pull off successfully.

While Delaware's new law allowing civil unions has smoothed over some of the potential pitfalls, gay and lesbian couples remain in something of a legal limbo and face far more peril than married couples when it comes to ensuring that assets pass smoothly to a surviving partner.

“With a same-sex relationship, some of the key things to be aware of are the rights of the partners in the event of the unexpected, addressing ‘What would happen if?' ” said Bridget Erhard, a Newport-based certified financial planner with Ameriprise Financial, which markets its services to same-sex couples.

In response to the new law, some financial planners, attorneys and accountants are tailoring services specifically to the unique and still-uncertain circumstances that arise when domestic partners are not “officially” married in the eyes of the law.

In Delaware, the differences are now not as sharp, thanks to the passage of the Delaware Civil Union and Equality Act, which was adopted last year and took effect New Year's Day. But when it comes to the federal government, the law remains relatively blind to the notion of civil unions, creating a mix of conflicting rules, and potential risks, for couples who want to minimize taxes and protect family assets.

Yet even as the professional community recognizes the market potential of financial planning for gays and lesbians, some couples remain dangerously unconcerned.

“We have […]

On the Net2017-10-07T11:14:46-07:00January 9th, 2012|Estate Planning, LGBT Planning|

Planning for the Future and Reducing Uncertainty

Yuma Sun: When planning for the future, none of us has a crystal ball. We must plan our affairs based on current circumstances while trying to anticipate a whole range of possible future events.

When a couple sits down to plan what they want to happen after their death, they are trying to anticipate events decades down the road. A couple, each age 50, on average has more than 35 years until the death of the survivor of them. Who 35 years ago could have predicted the way our society would change and how events would occur into the 21st century?

Of course, we must plan, even though few, if any of us, have the ability to predict events in the years to come. We can plan for unforeseen events by giving discretion to those who will be there when those events occur. We choose someone we trust to make those decisions and to come as close as possible to what we would have done if we were there to make the decision. When we leave our assets in a trust, a “trustee” is given the responsibility of managing those assets and carrying out our wishes. The trustee can be given broad discretion, which he or she can exercise in light of the circumstances which we could not have foreseen.

Sophisticated estate planning attorneys even use a concept called a “trust protector” or “special co-trustee” to add even greater flexibility. A trust protector is an unbiased, unrelated person. He or she should not be the normal trustee and should not be one of the beneficiaries of the trust. He or she is given the authority to exercise powers which might […]

On the Net2017-10-07T11:14:46-07:00January 9th, 2012|Estate Planning, Trusts|

New Estate and Gift Tax Rules A Game Changer

Yuma Sun: Many of us spent our childhood years playing sports and games. An important part of our development was learning the rules. Once we understood the rules, we could develop creative strategies for winning.

When the rules changed, our strategies needed to adapt. Estate planning is no different. Late in 2010, President Obama signed into law changes to estate and gift tax rules.

If you haven't already, it's important to review the new rules and make adjustments to existing estate planning and gifting strategies. Here are a few of the changes that may affect your plans:

• Estate taxes reinstated — In 2010, for a single year there was no estate tax. During 2011 and 2012, the top estate tax rate will be 35 percent and the estate tax exemption amount will be $5 million. In 2013, these temporary changes will end and we may see a return to higher estate tax rates and lower exemption amounts.

• Generation-skipping transfer tax repealed — Generation-skipping transfers allow one person to reassign ownership of assets to another person who is two or more generations younger. For example, a grandparent might transfer ownership of property, by gift or at death, to a grandchild. Historically, GSTs have been taxed at the highest estate tax rate. However, for 2010, the GST tax was temporarily repealed. As a result, gifts made to grandchildren during 2010 were assessed gift tax and not GST tax.

The GST tax returned in 2011 with the top rate at 35 percent. Executors of estates for those who died during 2010 chose between the estate tax rules for 2010 and those for 2011 by filing an estate tax return […]

On the Net2017-10-07T11:14:46-07:00January 9th, 2012|Estate Planning, Estate Tax|

Why Everyone Needs A Will

Brattleboro Reformer: “I'm not old enough to worry about a will,” said one of my clients recently.

Looking at him, you might agree, At 25, he is as healthy as the horses he shoes. As a Ferrier with his own business, he works hard and plays hard. Life is his oyster right now but if he dies, I reminded him, the state gets everything.

“No way,” he said, in utter disbelief.

But it is true. As a single man with no relatives and no will, the chances are quite high that the state would take everything. Fortunately, my client found religion and immediately did some estate planning, including creating a will. Unfortunately, most people will find every excuse in the book to avoid creating a will. Many individuals feel uncomfortable with the possibility of their own death or they take the attitude that when you're dead, you're dead, so why worry about it.

You may be surprised to know that most states are prepared for that and have effectively written a will for you. They are called statutes and are used to determine your heirs if you die “intestate” (without a valid will). Each state's statutes are different and can have an enormous impact on your heirs, especially your children.

If you die without a will, for example, and have children under 18, the state will control who will care for them. Sure, siblings or grandparents are usually the go to choices as guardians, but not always. There are also many instances where a sister or brother may not agree with the court's ruling. In which case, there ensues a long and costly custody battle with most of […]

On the Net2016-12-13T20:33:37-08:00January 5th, 2012|Wills|

New Years Resolution: Create A Basic Estate Plan

NJ.com: Today Your Legal Corner will address “Basic Estate Planning.”

What will you do with this New Year given? Perhaps you want to lose 10 pounds, make plans for a spring garden, change jobs, travel to Europe or dedicate time to a coveted project. Just think of the possibilities this New Year brings.

One goal to definitely include is to review or create an estate plan. A basic estate plan consists of completing an inventory of present assets, defining goals, relationships, and realities; and then developing a plan of action.

Inventory Assets

Generally, most estate planning begins with an inventory of the assets. If you would like to receive an Inventory Packet, simply request one by email, phone or letter and it will be provided, free of charge.

The Inventory Packet is a guide used to list assets, state where assets are held, and define preferences and relationships. Once completed, the Inventory Packet will aid in deciding what type of estate plan is needed. The Inventory packet should be kept with the will.

Goals, Relationships and Realities

Quite often, the difficult questions have not been answered. While it is difficult to predict the future, estate plans must still be created with goals, relationships and realities in mind. For example, what are your long term goals? Where would you choose to reside as you age? What does retirement look like for you? Will you travel? Will you continue to work? Do you have long-term care insurance?

Each estate plan should address the possibility of nursing home living. At the very least, have a plan in place as to with whom or where you would reside in […]

On the Net2012-01-05T11:09:16-08:00January 5th, 2012|Estate Planning, Healthcare Directives, Powers of Attorney, Wills|

Rosa Parks’ Estate Returned To Friends To Carry On Legacy

Estate of Denial: The Michigan Supreme Court has ordered a judge to return the estate of civil rights icon Rosa Parks to her longtime friend Elaine Steele and the institute the two women founded in 1987 to carry on Parks’ legacy.

In a tersely worded order Thursday, the high court said Wayne County Probate Judge Freddie Burton Jr. and the Michigan Court of Appeals wrongly stripped Steele and the Rosa and Raymond Parks Institute for Self Development of their financial stake in Parks’ estate.

The Supreme Court said Steven Cohen, the lawyer for Steele and the institute, did not divulge details of a 2007 confidentiality agreement that resolved an estate dispute involving the institute, Steele and Parks’ 13 nieces and nephews.

Cohen said Thursday’s decision is a significant victory for his clients.

“They are thrilled and gratified that Rosa Parks’ wishes are finally being honored,” he said.

He said the order requires Burton to return all of his clients’ property and, within 30 days, to remove attorneys John Chase Jr. and Melvin Jefferson Jr., whom Burton put in charge of the estate after Parks died in 2005. They are to be replaced with Steele and retired 36th District Judge Adam Shakoor, whom Parks had designated to handle her estate. Steele is Parks’ longtime friend, assistant and caregiver.

Alan May, who represents Chase and Jefferson, said Friday that he wasn’t aware of Thursday’s decision and needed time to review it. Lawrence Pepper, who represents Parks’ nieces and nephews, agreed.

“We need some time to sort things out and look at this order,” Pepper said, adding that he doesn’t know how realistic it will be for Burton to […]

On the Net2016-12-13T20:33:37-08:00January 5th, 2012|Estate Fights, Rich & Famous|

Arizona Probate Case Records Will Not Be Available Online

Estate of Denial: A newly imposed rule restricting electronic access to Maricopa County Probate Court records means that cases cannot be reviewed without physically going to the clerk of court’s office.

The rule has raised concerns among many of those involved in probate court who say it prevents them from gaining access to their own cases or cases involving relatives. It also has some probate judges and lawyers calling on the state’s highest court to lift the rule, which they described as inconvenient and problematic.

“Apparently these case records were previously provided online in violation of the rule,” Presiding Maricopa County Probate Court Judge Rosa Mroz wrote in a December e-mail. “At this time, however, there is nothing we can do.”

The rule, which prohibits the general public from accessing court records from so-called remote locations, including home and laptop computers, was established in 2009 and has been unenforced for almost two years.

The decision to limit electronic access was based in large part on concerns over identity theft, according to those who served on the Supreme Court advisory committee, which recomended the restriction in 2009.

Officials at the Arizona Supreme Court, which oversees operations of all state courts, said they didn’t become aware that Maricopa County was making judicial orders and minute entries in probate cases available online until last month, when they ordered a halt to the practice.

The restriction also applies to court orders in mental health cases.

The decision to limit access comes after a 2010-2011 investigation by The Arizona Republic that found Maricopa County Probate Court for years allowed the assets of some vulnerable adults to become cash machines for attorneys […]

On the Net2016-12-13T20:33:37-08:00January 5th, 2012|Probate|

NFA Trusts

Class 3 License: “In today’s world, obtaining class 3 weapons can be a real hassle. There are numerous options that crop up when dealing with the BATF and local police concerning the ownership and possession of these weapons. Remember, it is up to you to keep yourself up to date on the laws and regulations involving these restricted firearms. A NFA trust is an estate planning tool which can be used to acquire NFA (Class 3) weapons, suppressors and destructive devices. . . . Unless you are an experience trust attorney that has knowledge of NFA trusts, you will need to hire an attorney to make sure everything is followed to the letter of the law. They are not outrageously expensive, but some people just don’t like working with attorneys. Do yourself a favor and contact a good one – it will save you headaches in the long run.

On the Net2022-10-11T15:44:27-07:00December 29th, 2011|Gun Trusts|

Estate Fight Continues Over “Dragon Tattoo” Profits

Estate of Denial: THE premiere of The Girl With The Dragon Tattoo was a suitably high-profile occasion.

This is, after all, the long-awaited screen version of what has become a publishing phenomenon almost on a par with the Harry Potter series.

Author Stieg Larsson never knew how successful he would be as he died just before his first best-seller was published.

But his heirs have certainly reaped the benefits. More than 50 million people have bought a Stieg Larsson thriller and they’re still buying in droves. If Larsson’s estate makes one pound from each book sold – a conservative estimate – then his heirs have already made around £50million from the novels alone.

The film rights, which have been sold twice, brought in more. The first film adaptation, made by a Swedish company, has generated more than £70million. Sony bought the English-language rights with American producer Scott Rudin and it is their version, directed by David Fincher, which premiered on Monday and will go on general release on Boxing Day.

The fact they spent $100million on it suggests they are confident it will not only recoup its costs but surpass them by some margin.

Shot largely in Sweden, the film stars Bond actor Daniel Craig – suitably Nordic and gloomy as investigative journalist Mikael Blomkvist. Lisbeth Salander, the deeply disturbed computer whizz anti-heroine is played by Rooney Mara, known so far only for a small role as the girlfriend who dumps Facebook founder Mark Zuckerberg at the beginning of The Social Network.

The impressive supporting cast includes Christopher Plummer, Joely Richardson, Steven Berkoff, Stellan Skarsgard and former ER heartthrob Goran Visnjic. With that kind of […]

On the Net2016-12-13T20:33:37-08:00December 19th, 2011|Estate Fights, Rich & Famous|

Why People Fight Over Estates

Estate of Denial: In a WealthCounsel Quarterly post Blood & Money: Why Families Fight Over Inheritance, P. Mark Accettura, J.D., lists what he sees as five reasons of why families end up in estate disputes:

There are five basic reasons why families fight in matters of inheritance: First, humans are genetically predisposed to competition and conflict; second, our psychological sense of self is intertwined with the approval that an inheritance represents, especially when the decedent is a parent; third, we are genetically hardwired to be on the lookout for exclusion, sometimes finding it when it doesn’t exist; fourth, families fight because the death of a loved one activates the death anxieties of those left behind; and finally, in some cases, one or more members of a family has a partial or full-blown personality disorder that causes them to distort and escalate natural family rivalries into personal and legal battles. These sources of family conflict are not mutually exclusive; in most cases, some combination of the five elements present themselves in a combustible cocktail of family rivalry and conflict.

Continue reading this article here.

On the Net2016-12-13T20:33:37-08:00December 19th, 2011|Estate Fights|

Scottsdale Estate Planning Attorneys