Arizona Estate Planning

Three Must Have Documents Everyone Should Have

There comes a point in every person's life when it is time to sit back and take stock of what you have accomplished. This could be a beautiful family, a lovely home or a thriving business. Whatever the source of your pride, it makes sense to protect it, just like you would any other asset. You protect your home and your business with insurance, but what about yourself and your family?

Protecting yourself and your family doesn't have to be difficult or expensive. But it does need to be done. Here are the three must have documents everybody should have to protect themselves and their families:

1. Last Will & Testament

You probably know what this document is. It disposes of your assets after your death. Without a Will, your state of residence determines how your assets should be divided. But can you really depend on some ambiguous state laws to protect your family? Wouldn't it be better to lay everything out in such a way that ensures your wishes are followed? This is what a Will does for you.

What many people don't know about Wills is that a Will is where you name the guardian for your minor children. Don't have a Will? Now the state gets to pick a guardian for your kids. Do you trust the state to pick the best possible person to raise your children? I don't know many people who would.

Your Will also names the Personal Representative of your estate. This is the person responsible for administering your estate by paying your final taxes, paying any creditors and collecting and distributing your property. Once again, without a Will, the state […]

Richard Keyt2023-02-27T07:02:41-08:00May 22nd, 2012|Estate Planning, FAQ, Healthcare Directives, Powers of Attorney, Wills|

Should Couples Plan Together or Separately?

Forbes: “How married couples and domestic partners structure their estate plans can make the difference between whether a family stays connected or gets blown apart after the first spouse or partner passes away. Things can be even more complicated and volatile in blended families – when there are step and half siblings and stepparents in the mix.

The first issue for all couples to resolve is whether to be represented jointly by the same estate planner or for each of you to have your own lawyer. Joint representation can be more cost-effective, since you only have to pay one set of estate planners, and more efficient–working together enables you to divvy up tasks as you prepare to meet with your estate planners. Another advantage is that it builds greater trust and more open communication between the two of you, and possibly with all of the children in your lives.”

On the Net2012-04-11T08:28:14-07:00April 11th, 2012|Estate Planning, FAQ|

Should I Update My Will?

NJ.com: Q. Our daughter was very young when my wife and I had wills prepared. Our daughter is now married with a different last name. Is it necessary to change our will to reflect this? If yes, must we use a lawyer to make the change?

– BB

A. No, but it might be a smart investment anyway.

Your executor is charged with identifying and notifying your intended beneficiaries, said Frederick Schoenbrodt, an estate planning attorney with Neff Aguilar in Red Bank.

“If there is no ambiguity regarding who you meant when you referred to your daughter in your will – and there probably isn’t – then your executor will make the gift to your daughter, even if she has taken a new surname,” he said.

The will reflects your intent, and the process of settling your estate should facilitate that intent, he said.

“While formalities in will drafting are important, the probate and administration process is not so formalistic that your daughter’s name change as a result of her marriage would frustrate your clearly stated intent,” he said.

But there may be other reasons to revisit your will.

On the Net2012-01-25T08:55:15-08:00January 25th, 2012|FAQ, Wills|

I Made a Will… Now What?

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|

What Is Estate Planning?

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|

What is Community Property?

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|

I Want My Spouse and Kids to Inherit Everything. Do I Need a Will?

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|