Arizona Estate Planning Checklist 2024

It is never too early to begin creating your estate plan. Doing so is a loving thing to do for your family members so that there is a plan in place for how your estate will be distributed after you pass away. However, there are a lot of things to consider when creating your estate plan if you live in the state of Arizona, such as what estate planning documents you need to include. It can be helpful to have an Arizona estate planning checklist.

Understanding Estate Planning in Arizona

Before creating an estate plan, you must think about how your estate will be overseen before being transferred to beneficiaries. If you need an executor, then naming the right one will be beneficial to you. Or, if you have a revocable living trust, having a reliable trustee can also be extremely helpful.

A major part of an estate plan includes preparing your estate to be passed to others upon your death. This includes passing your assets, bank accounts, or other property onto your beneficiaries.

By having this plan in place, you are ensuring that the individuals you wish to inherit your assets will be given those assets. You can also potentially keep your assets from undergoing the probate process, as well as planning for medical treatment in the event that you become seriously ill or injured.

If you reside in Arizona, keep in mind the legal requirements regarding the probate process as well as creating a will, rights involving inheritance, and handling estate taxes, if applicable.

The Document Checklist: The Typical Documents Necessary for an Estate Plan

To create an effective estate plan, you should include several documents such as a will (or a last will and testament), a healthcare power of attorney, a trust, and beneficiary deeds. Creating a complete estate plan should include certain documents, like the ones listed below:

Last Will and Testament: This kind of will is essentially the foundation of your estate plan as it should outline the distribution details of your assets, how you plan to care for your spouse and/or children after your death, who will care for your children if you were to die while they are minors, and assigning an executor to care for your estate. A legally valid will gives you and your family peace of mind that your assets will be divided as you want them to be.

Healthcare Power of Attorney: This document is especially important in the event that you are suddenly unable to make medical decisions for yourself. Instead, it gives clear directions on who will make those medical choices for you on your behalf. When you choose a healthcare agent, they can speak with healthcare providers about the care you are receiving, have access to your medical records, and make end-of-life choices for you.

Durable Financial Power of Attorney: A durable financial power of attorney gives an agent the authority to manage multiple financial matters such as bank accounts, investments, paying certain bills, taking care of taxes, buying or selling property, and handling insurance policies and retirement accounts.

This document is very important to your estate plan as it ensures that your financial matters will be taken care of after your passing, or ensure that your financial matters will continue to be attended to if you can no longer handle them yourself.

Living Will (including an Advance Healthcare Directive): A living will gives instructions on how to handle circumstances regarding the end of your life. This can include if you want any life-sustaining treatments, if you wish to take particular pain medications, and if you wish to donate organs.

Revocable Living Trust: Including a revocable living trust in your estate can be helpful in many ways, as it usually prevents assets within the trust from undergoing probate. It also allows for your estate to maintain privacy, as trusts are not included in a public record. You will also have the capability of maintaining these assets while you are alive.

FAQs

What Is the Difference Between a Revocable and Irrevocable Trust?

There are several differences between a revocable and irrevocable trust. A revocable trust is able to be managed by the grantor during their lifetime. An irrevocable trust, however, does not allow the grantor to make any modifications to the trust. Once the grantor of a revocable trust passes away, it becomes irrevocable.

What Assets Must Go Through Probate in Arizona?

There are several assets that must go through probate in Arizona. Some of these include certain bank accounts, brokerage accounts, real estate properties, and particular personal pieces of property like jewelry, valuable pieces of artwork, and vehicles. These assets must undergo probate because the deeds must be transferred into another person’s name (the beneficiary’s name).

What Happens If You Die Without Having a Will in Arizona?

If you die without having a will in Arizona, the assets within your estate will be divided according to Arizona’s intestacy laws. Following the laws, it will give your children and spouse a certain amount of the estate, then be divided amongst other living relatives. If you have no other living relatives but your spouse, then your entire estate will be transferred to them.

What Are the Two Key Documents Used to Prepare an Estate Plan?

The two key documents used to prepare an estate plan typically include a last will and testament and a trust. Other important documents include a power of attorney and a living will. A will is essential to preparing an estate plan because it gives instructions on how you want your assets to be divided. Having a trust is also essential, as your assets can avoid probate and should easily transfer to your beneficiaries.

Consult with an Arizona Estate Planning Lawyer

Planning your estate can start as early as you wish. Creating an estate plan helps your family know that there is a plan in place for caring for them after you have passed away. There are several things to consider when preparing your estate plan. If you live in the state of Arizona, consider what documents are most important to include. Contact CDM Law Firm, for help with your estate planning.