Arizona Estate Planning

Estate Planning: How to Assess Your Assets

jacksonwhite — Wed, 18 Jul 2012 18:44:53 +0000

Estate planning is not usually high on someone’s to-do list. After all, it may mean facing some uncomfortable decisions and realities. However, there are significant benefits to planning your affairs well ahead of time:

First, you get to choose who handles your affairs and how assets are distributed.
Second, you can set up your estate plan to avoid estate tax issues, if needed.
Third, you can minimize or remove any financial burden placed on your loved ones in the event of your death or disability.

One of the first steps to take when creating an estate plan is to take stock or an inventory of all your assets. These assets include:

Investments
Retirement accounts
Insurance policies
Real estate
Business interests.
Bank accounts
Items of valuable personal property

After you take stock of your assets, you need to decide who you want to inherit them. This is also a good time to choose who you want to take care of your financial affairs and/or medical care should you become incapacitated or ill.

Anticipated legislation and current law may have an impact on the estate planning process as estate and gift-tax rates and estate tax exemption (the amount of money you’re able to leave a loved one free of federal taxes) are at issue.

It is important to have a knowledgeable and competent Phoenix attorney at your side. If you’re ready to assess your assets and begin planning your estate, call (480) 464-1111 to get in touch with attorneys, Dave Weed and Otto Shill, to assist you with the process.

Take Advantage of the Tax Relief Act of 2010 While You Still Can

jacksonwhite — Mon, 04 Jun 2012 10:00:21 +0000

The Tax Relief Act of 2010 allows for much higher exemption rates for estates and gifting for individuals and married couples. However, the Act’s provisions are only scheduled until January 1, 2013, after which the unified tax credit will decrease again. If you have not reviewed your estate plan to reflect this Act and its tax exemptions, don’t wait until the opportunity passes you by. An Arizona estate planning lawyer can help you take advantage of this chance.

Estate, gift, and generation-skipping transfer (GST) taxes are greatly affected by the Act for the rest of the year. In 2012, individuals have an exemption of $5.12 million, and married couples, with proper planning, are allowed $10.24 million in gift, estate, and GST exemptions.

In addition, the Act also allows an individual whose spouse dies before them to inherit any leftover tax credit that their deceased spouse didn’t use.

The table below shows the fluctuating taxes and exemptions relating to estates, gifts, and GSTs from 2010-2013.

RATES AND EXEMPTIONS UNDER TAX RELIEF ACT OF 2010

As of Jan 1	2010	2011	2012	2013
Estate tax rate	35%	35%	35%	55%
Estate tax exemption	$5 million	$5 million	$5 million	$1 million
Gift tax rate	35%	35%	35%	55%
Gift tax exemption	$1 million	$5 million	$5 million	$1 million
GST tax rate	0%	35%	35%	55%
GST tax exemption	$5 million	$5 million	$5 million	$1.35 million

If you want to take advantage of the limited estate, gift, and GST tax exemptions and need to update your estate plan, schedule a consultation with an experienced and knowledgeable Arizona estate planning attorney. Dial (480)-464-1111 to increase your tax exemptions by planning a meeting with estate planning attorney, Dave Weed today.

Even if You Think Your Estate Plan is Perfect, it May Still Need Some Updates

jacksonwhite — Thu, 10 May 2012 10:00:24 +0000

Depending on your investments and your intentions, you may need to take a couple of extra steps to ensure that your assets will be passed on exactly as you intend. Without some precautionary measures, a portion or even a majority of your assets may be passed on in a manner that does not meet your wishes. This may pertain to your 401(k) plan and IRA.

401(k)

Without other planning, your 401(k) assets will automatically transfer to your spouse if you are married when you die. Even if the account was created before your marriage or you have a prenuptial agreement, your spouse may be the only beneficiary to your 401(k) assets the second you are officially man and wife.

If you do not wish to pass on all of your 401(k) assets to your spouse, you should speak with an estate planning attorney to make some necessary changes. Your spouse will need to file a written statement waving his or her rights to your 401(k).

IRA

Similar to your 401(k) assets, your IRA may not be distributed out as you intended in your will. Rather, it will go to the person(s) you listed on your beneficiary designation form. However, if you want to name different persons to receive your IRA assets, you should meet with an estate planning attorney to ensure that your beneficiary designations match your intentions.

If you have some kinks in your estate plan that still need to be worked out, contact an experienced Arizona estate planning attorney who can help. The estate planning attorneys at JacksonWhite have the knowledge and ability to get your estate plan put in place. Call today (480)-464-1111 to schedule a consultation with attorney, Dave Weed

Elements of an Estate Plan

jacksonwhite — Thu, 26 Apr 2012 10:00:22 +0000

Arranging for the management of your estate in the event of your death may seem like an intimidating and confusing task, but with the right help and guidance, estate planning can be relatively simple and painless. There are several basic elements of an estate plan. These include:

Legal Documents
- Wills & Trusts
- Documents which allow your Agent to handle health care, financial, and burial matters
- Deeds to Real Estate

Accounts and Beneficiary Forms
- Joint and Individual Accounts
- Life Insurance Policies
- Retirement Plans
- Gifting
  - Giving Outright or in a Trust
  - UTMAs, UGMAs, and 529 Plans
    - UTMAs and UGMAs are gifts to minors which can avoid attachment to creditors or guardianship proceedings
    - 529 Plans can be used to pay for higher education expenses, including food, housing, and cars. The gifts grows tax deferred and can be withdrawn tax free.

Health and Education Expenses

While the elements of an estate plan may seem complicated, an experienced and knowledgeable Arizona estate planning attorney can guide you through each step. Getting your affairs in order before your death will make it much easier on your family when the time comes, and you can rest assured that your wishes will be followed. Call (480)-464-1111 to schedule a consultation with attorney, Dave Weed today.

What does Dying Intestate Mean?

jacksonwhite — Tue, 20 Mar 2012 10:00:13 +0000

Dying intestate simply means dying without a will. While this may not sound very frightening, the consequences of dying intestate can be very damaging to you and your family.

If you die without a will in Arizona, your property will be divided according to Arizona’s intestacy laws. The laws are complicated, but basically, your property will be divided amongst your heirs, and the amount each heir receives depends on their familial relationship to you. So, if you want to pass a certain amount of your estate on to a particular heir, the laws may not distribute in the exact way that you intended.

Don’t die intestate; make it easy on yourself and your loved ones by creating a detailed will now. An experienced Arizona estate planning attorney can guide you through the entire process. By advising with a professional, you can be assured that your affairs are handled correctly and that your intentions will be followed after you pass. Call 480-464-1111 to schedule a consultation with AZ estate planning attorney, Dave Weed today.

Arizona Estate Planning: Who Should Inherit My Assets?

jacksonwhite — Wed, 07 Mar 2012 10:00:40 +0000

It’s very difficult to decide who will inherit your assets when you die. Who is appropriate to receive an inheritance and which assets are appropriate to leave with your loved ones?

The first important step is to make some sort of written plan that describes your general wishes. This can be in the form of a will or a living trust and will be used in court to divide your assets after you die. If you don’t prepare a written plan, the court will decide who will inherit your assets in accordance with state intestacy laws, and the court’s decision may not be what you would have intended.

The next step is evaluating the type of assets you own. These include:

• Jointly Held Assets
• Individually Owned Assets
• Tax-deferred Assets
• Life Insurance Death Benefits
• Assets in Trusts that You Inherited from a Spouse or Another
• Assets with Pay on Death Beneficiaries

After you have evaluated your assets, it will be easier to see how they can be divided among your heirs.

If you need assistance to start your will or trust, evaluate your assets, or decide who should distribute your assets, I strongly suggest that you consult with an Arizona Estate Planning attorney that can guide you through the process. Working with someone with years of experience can make the process much easier, and will give you the assurance that you’ve handled your affairs properly. Call (480) 464-1111 to schedule a consultation with Arizona estate planning attorney, David Weed today.

Arizona Estate Planning-How Do I Create a Power of Attorney?

jacksonwhite — Tue, 14 Feb 2012 10:00:50 +0000

When creating a power of attorney, the most important step is to understand why you want someone to have control over your legal or financial matters. There are many reasons why people create powers of attorney– the most common being when individuals want someone else to make decisions for them when they lose mental clarity with old age. Maybe you’re in the military and want someone looking over your affairs while you’re deployed. Another good reason to create a power of attorney is to have someone available to act for you if you suffer a devastating medical injury that leaves you unable to handle your affairs.

Whatever your circumstance, it is critical that you understand what power you want your agent to have over your affairs. This will help you decide what type of agreement you desire, when it becomes effective, and how long you want that agreement to last.

Once you have made those decisions, the next step is to decide the person you want to act as your agent under the power of attorney. Your choices of an agent may include a relative, friend, lawyer, or financial adviser. Whomever you choose, you should be sure that the individual is willing and trustworthy, and that they are mentally and physically a good candidate to act on your behalf.

After you have selected someone, you should draft a legal power of attorney document with a lawyer. This document should clearly define what you want your power of attorney to cover and for how long the agreement is valid.

Once completed, the document must be signed by you and also witnessed and notarized. You and your agent should keep copies of the document in a secure place. Anyone dealing with your agent will want to see an original of the power of attorney. It is a good idea to notify your bank after you have created a power of attorney to avoid any confusion.

If you have more questions on how to create a power of attorney, schedule a consultation with an experienced Arizona Estate Planning attorney today. Call (480)-464-1111 to schedule an appointment with JW estate planning attorney, Dave Weed.