{"id":1094,"date":"2019-02-26T18:08:52","date_gmt":"2019-02-26T18:08:52","guid":{"rendered":"https:\/\/www.jacksonwhitelaw.com\/arizona-estate-planning\/?page_id=1094"},"modified":"2022-08-31T22:58:41","modified_gmt":"2022-08-31T22:58:41","slug":"basic-estate-plan","status":"publish","type":"post","link":"https:\/\/www.jacksonwhitelaw.com\/arizona-estate-planning\/blog\/basic-estate-plan\/","title":{"rendered":"Setting Up a Basic Estate Plan in Arizona"},"content":{"rendered":"

Introduction<\/h2>\n

Everyone needs an estate plan. Whether you\u2019re rich or poor, married or single, have a house full of kids or an apartment full of cats is irrelevant — a failure to plan is a plan to fail.<\/p>\n

The good news is that it\u2019s easy to set up a basic estate plan. You\u2019ll need an estate planning attorney<\/a> to prepare the necessary legal documents and answer your estate planning questions, but it\u2019s quicker and more affordable than you think. In the end, it\u2019s worth a small investment of time and money to ensure your wishes are known and your loved ones will be properly cared for.<\/p>\n

What is an Estate Plan?<\/h2>\n

In its simplest form, an estate plan is a road map for others to follow when you\u2019re not able to express your wishes and preferences in person. The most obvious circumstance is when you pass away, providing direction on how to handle your funeral, care for your dependents, and transfer your assets to beneficiaries. A proper estate plan should also address what will happen if you become incapacitated. Who has the right to act on your behalf to sign legal documents, cash paychecks, and pay your bills? What treatment options would you approve or deny when this individual confers with your healthcare providers?<\/p>\n

In short, a basic estate plan should answer important questions today that may be asked in the future, and establish one or more trusted individuals to handle the matters that you didn\u2019t directly plan for. Don\u2019t worry about what happens if you change your mind or your life circumstances change — you can always adjust and adapt your estate plan when necessary. The important thing is to set up a basic estate plan today in case the unexpected happens tomorrow.<\/p>\n

How to Set Up an Estate Plan<\/h2>\n

Let\u2019s start by addressing one of the first questions on people\u2019s minds — \u201cdo I need an estate planning attorney?\u201d While some individuals with limited assets and a simple estate may be able to get away with a DIY approach, it helps to work with an experienced estate planning attorney who can guide you through the process and ensure you end up with the best possible plan. Even the simplest estate plans have special issues that require expert assistance. At the very least, a good attorney can make the process much easier than if you were to try it on your own.<\/p>\n

With that in mind, the first step in the estate planning process is to find a suitable estate planning attorney. Experience and expertise are relevant, but it\u2019s even important to find someone you\u2019re comfortable working with. When you meet with a prospective attorney for an introductory consult, ask yourself if you can see yourself working with this attorney, sharing private information and trusting them to secure your most valuable possessions. Be sure to ask about their fees, and feel free to shop around to ensure they\u2019re offering fair rates.<\/p>\n

Once you\u2019ve found a suitable attorney, the two of you will begin working on your estate plan. For the purpose of our discussion today, a basic estate plan includes the following pieces:<\/p>\n

Durable Power of Attorney<\/h3>\n

A durable power of attorney<\/a> legally authorizes an agent to act on your behalf. You can choose to authorize your agent immediately, or place a contingency that power is only granted when you become mentally incapacitated. In either case, this individual — your spouse, an adult child, a parent, a close friend, or a trusted advisor — will have the requisite authority to manage your financial accounts, sign legal documents, pay your bills, and ensure everything runs as smoothly as if you were running things yourself.<\/p>\n

Advance Healthcare Directive<\/h3>\n

Sometimes referred to as a living will<\/a>, an advance healthcare directive clearly stipulates your healthcare preferences on important matters like life support, palliative care, resuscitation, and chemotherapy. Should you become incapacitated and unable to communicate your preferences to a doctor or family member, your doctor will follow the wishes outlined in this document. Your advance healthcare directive may also authorize a family member to serve as your healthcare proxy, though this authority can be conveyed through your durable power of attorney, too.<\/p>\n

Beneficiary Designations\u00a0<\/span><\/h3>\n

With proper planning, most assets can be positioned to avoid probate and transfer to beneficiaries<\/a> immediately after your death. This is accomplished through beneficiary designations on bank accounts, investment accounts, life insurance policies, annuities, and trusts.\u00a0<\/span><\/p>\n

Last Will and Testament<\/h3>\n

If you have property that\u2019s required to transfer to beneficiaries through probate, you\u2019ll need to address these assets in your will. In addition to naming beneficiaries for these assets, your will should nominate an executor to serve as your estate\u2019s personal representative<\/a> from the time you pass away until your estate is closed. If you have any minor children, your will should also designate a guardian in case you and your spouse pass away simultaneously.<\/p>\n

Letter of Intent<\/h3>\n

A letter of intent doesn\u2019t have the same legal implications as an advance healthcare directive, power of attorney, or last will and testament, but it plainly establishes your wishes in a form that attorneys and judges are inclined to follow should the issue go to court. While there are many topics your letter of intent may address and your attorney will advise you on what to include, every estate plan should include a letter of intent regarding the decedent\u2019s funeral and burial plans. This information may also be included in your will, but it\u2019s not uncommon for a decedent\u2019s will to be read after the funeral — in which case the decedent\u2019s funeral and burial plans would be too late.<\/p>\n

Benefits of Estate Planning<\/h2>\n

It\u2019s impossible to understate the importance of estate planning. Whether you\u2019re a minimum wage-earning employee or a retired millionaire, the benefits of estate planning far outweigh the time and money the process requires. When you\u2019re done, you\u2019ll enjoy peace of mind knowing that:<\/p>\n