{"id":958,"date":"2017-12-07T19:14:27","date_gmt":"2017-12-07T19:14:27","guid":{"rendered":"https:\/\/www.jacksonwhitelaw.com\/arizona-estate-planning\/?page_id=958"},"modified":"2024-10-04T21:59:07","modified_gmt":"2024-10-04T21:59:07","slug":"take-care-before-die","status":"publish","type":"post","link":"https:\/\/www.jacksonwhitelaw.com\/arizona-estate-planning\/blog\/take-care-before-die\/","title":{"rendered":"Things to Take Care of Before You Die"},"content":{"rendered":"

Introduction<\/h2>\n

Estate planning isn\u2019t just for the wealthy, and it goes far beyond planning how to transfer your assets. A good estate plan should address a number of topics, such as end-of-life healthcare contingencies, funeral arrangements, settling your liabilities, distributing your assets, and leaving a legacy. To get your affairs in order, here are 10 things to take care of before you die.<\/p>\n

1.\u00a0Prepare for End-of-Life Contingencies<\/h2>\n

If you become incapacitated\u2014perhaps due to an accident, illness, or simply as a result of old age\u2014you will need someone to speak for you and act on your behalf. This individual will need authorization to access your financial accounts, to pay your bills and manage your assets, and they may need the authority to speak with your doctors to make important healthcare decisions. To assign someone access to your finances, issue a durable power of attorney<\/a>; to confer the authority to make important medical decisions, issue a healthcare power of attorney. You can provide this individual with full access, or you can limit their power to certain assets and situations. You also have the right to rescind a power of attorney, so you\u2019re not necessarily locked in once you issue one.<\/p>\n

In addition to conferring a power of attorney, you should also create a living will (known as an advance healthcare directive<\/a>). A living will documents your healthcare preferences so doctors have something to refer to in case you are unable to communicate important healthcare decisions. Your living will can be as broad or as detailed as necessary, and will usually cover topics like palliative care (treatments to alleviate pain and suffering), resuscitation, and artificial life preservation. This document is separate from and not to be confused with your last will and testament.<\/p>\n

2.\u00a0Make Your Funeral and Burial Arrangements<\/h2>\n

Write a Letter of Instruction to your family regarding your preferences for a funeral and burial. If possible, look into making pre-need purchases such as a burial plot and casket. If you wish to be cremated, make this intention clear and include appropriate instructions on what should be done with your cremated remains. You can also use the Letter of Instruction to indicate if you wish to be an organ donor. Most people include this information in their will, but it\u2019s helpful to leave a separate Letter of Instruction in case your will isn\u2019t opened until after your funeral.<\/p>\n

3.\u00a0Nominate an Executor to Handle Your Estate<\/h2>\n

Just as you\u2019ll need someone to handle your affairs before you die, you\u2019ll need someone to handle your estate when you die. This individual is known as the executor, or personal representative<\/a>. They will be tasked with gathering your assets, settling your liabilities, distributing your assets, and (if applicable) other probate responsibilities. Most people turn to their spouse or an adult child for this role, but you can choose anyone you trust, including friends, business associates, or an attorney. Clearly identify your executor in your will, and name a backup executor in case the primary executor is unable to fulfill the obligation.<\/p>\n

4.\u00a0Compile Your Assets and Liabilities<\/h2>\n

Before you start on your will, it helps to get a clear picture of your assets and liabilities. Start by taking an inventory of your liquid assets, including cash, bank accounts, brokerage accounts, retirement accounts, and precious metals (gold, silver, etc.). These should be easy to value using your most recent account statements. Be sure to include the value of any life insurance policies, and any other insurance policies that may carry a death benefit (accident, traveler\u2019s, homeowner\u2019s, health, auto, etc.).<\/p>\n

Next, compile a list of your illiquid, physical assets, including real estate, vehicles, jewelry, collectibles, and other personal property. Regarding personal property, it helps to walk through your house and jot down personal possessions worth more than $100. Look for computers, televisions, guns, furniture, power tools, antiques, etc. To the best of your ability, estimate the value of these possessions. Don\u2019t worry about hiring a professional appraiser, as your executor will probably have to do that when you die.<\/p>\n

Once you have an inventory of your assets, move on to your liabilities. Gather account statements for credit cards (both with and without balances), mortgages, auto loans, home equity lines of credit, student loans, and other personal loans or debts. You may want to request a copy of your credit report to check for any accounts that you missed.<\/p>\n

5. Choose Your Beneficiaries<\/h2>\n

Start by making a list of all your would-be heirs. These are people who would normally stand to inherit your assets under intestate succession laws (your spouse, children, parents, and siblings), as well as anyone who may feel entitled to an inheritance from you (extended family, grandchildren, or business partners). Be sure to include any organizations and charities you may wish to donate to. Next, whittle the list down to those who will actually receive an inheritance. These will be your beneficiaries<\/a>. To avoid ambiguity, collect identifying details for your beneficiaries, such as birthdates and addresses.<\/p>\n

6.\u00a0Plan how to transfer your non-probate assets<\/h2>\n

Most people haven\u2019t personally experienced probate court, but its universally understood that probate can be a long and expensive process. Fortunately, there are several ways you can minimize your estate\u2019s need for probate, and in some cases, you can skip it altogether. For starters, there are certain assets that can automatically transfer to your beneficiaries by contract, outside of probate. These include:<\/p>\n