{"id":1100,"date":"2019-02-26T18:11:57","date_gmt":"2019-02-26T18:11:57","guid":{"rendered":"https:\/\/www.jacksonwhitelaw.com\/arizona-estate-planning\/?page_id=1100"},"modified":"2024-03-27T23:11:44","modified_gmt":"2024-03-27T23:11:44","slug":"family-estate-planning-in-arizona","status":"publish","type":"post","link":"https:\/\/www.jacksonwhitelaw.com\/arizona-estate-planning\/blog\/family-estate-planning-in-arizona\/","title":{"rendered":"Family Estate Planning in Arizona"},"content":{"rendered":"
Estate planning takes on an entirely different meaning when you have a family. You\u2019re not just planning for yourself anymore — you have a responsibility to ensure your children are properly provided for and cared for in any contingency. That includes addressing what happens if you become incapacitated, what happens when you pass away, who will physically care for your children, and how that caregiver will financially support your children.\u00a0<\/span><\/p>\n When people use the term \u201cfamily estate,\u201d they\u2019re generally referring to community property<\/a> shared with a spouse. Under Arizona\u2019s community property laws, property that\u2019s accumulated from the date of marriage until the date of divorce or legal separation is shared equally between spouses. Each spouse has a 50% claim to the joint assets, and sole claim to separate property<\/a> acquired before marriage or by gift, descent, or device during the marriage.\u00a0<\/span><\/p>\n There are two ways to handle community property in a family estate. The easiest is to position your assets to transfer to your surviving spouse outside of probate by listing them as a joint owner or beneficiary. When handled properly, non-probate assets can pass to your spouse immediately upon your death without waiting to probate your will. Not only does this save time and money, it ensures your spouse has continued means to provide for your family in your absence.<\/p>\n Positioning assets to transfer outside of probate isn\u2019t always an option, however. In these situations, it\u2019s important to cover probatable assets in your last will and testament. It may take a little longer to probate the assets, but it\u2019s far better than leaving your estate subject to state intestacy laws in the absence of a will.<\/p>\n While family estate planning certainly carries unique considerations and contingencies to plan for, the core documents are the same as you\u2019d find in an individual estate plan. You can handle some of these on your own, but most of them will require the assistance of an experienced estate planning attorney.\u00a0<\/span><\/p>\n When you find an attorney you trust and see yourself working with, the attorney will help you prepare the following important documents to form the foundation of your estate plan:<\/p>\n When working on an estate plan for a family with young children, the most important consideration is what happens if you and your spouse pass away before the children reach adulthood. Choosing a guardian can be a challenging decision, but it\u2019s easy to put into action once you make your decision — simply list the guardian (and any backup guardians) in your last will and testament<\/a>. The greater challenge is finding a way to ensure your children have sufficient financial support in your absence.<\/p>\n Whether you choose to provide financial support for your children through personal savings, life insurance, or annuities, you\u2019ll need to carefully structure the gift. Children cannot own property until they reach adulthood, so an outright gift isn\u2019t an option. Depending on the advice your attorney offers, you may want to consider forming a revocable trust<\/a> to provide income until the children reach adulthood. At that point, the trust could liquidate and leave the remaining value to the children, or it could continue to provide income until the trust\u2019s assets are exhausted.<\/p>\n For wealthy families, the greatest obstacle to address with estate planning is estate taxes<\/a>. As of 2019, an individual may leave up to $11.4 million to heirs without triggering estate taxes, while a married couple can shield up to $22.8 million from estate taxes. Anything over these amounts would be subject to a tax of 18% – 40%.<\/p>\n Estate tax planning is a complex process requiring the assistance of an estate planning attorney, tax specialist, and financial advisor. As a team, these professionals will assess the potential future value of your estate and devise a strategy to minimize or avoid estate taxes to the extent the law allows. Some tax strategies you may choose to adopt include:<\/p>\n Blended families often have different financial goals and expectations. Unlike traditional estate plans where all assets transfer to the surviving spouse, it\u2019s not unusual for a spouse in a blended family to gift a portion (or all) of their assets directly to their children. Custody considerations also become an issue, as a step-parent doesn\u2019t have the right to step in as a guardian as long as the biological parent retains parental rights and parenting time.\u00a0<\/span><\/p>\n In this case, establishing a trust for your children is an excellent way to financially provide for their needs while also ensuring a third party (whether it\u2019s a step-parent or estranged biological parent) doesn\u2019t abuse those funds. When you pass away, the trustee could administer the funds for the children\u2019s benefit and monitor the surviving parent\u2019s spending habits. When the children reach adulthood, the trustee could then liquidate the trust and gift the remaining assets directly to the children.<\/p>\n Whatever your family estate planning needs are, JacksonWhite Law can help you plan for your future. Our team of experienced and dedicated estate planning attorneys can help ensure that your assets are in order and your family is protected in the event of your passing. We provide a wide range of estate planning services to Arizona families including power of attorney, living wills, last will and testaments and much more!<\/p>\nWhat is a Family Estate?<\/h2>\n
Core Documents in a Family Estate Plan<\/h2>\n
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Estate Planning for Young Families<\/h2>\n
Estate Planning for Wealthy Families<\/h2>\n
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Estate Planning for Blended Families<\/h2>\n
Receive Help With Your Family Estate Planning in Arizona<\/h2>\n