Estate Planning 101

One of the most important financial documents you can have to protect your legacy is an estate plan.

Unfortunately, many people overlook their assets by mistakenly believing they don’t have an estate. But, if you have something (anything) of value you want to leave to someone after you die, that is considered part of your estate. If you own property; have a bank account; savings account; or own a car, these are all part of your estate. If you have a coin, art, or dinnerware collection you want to leave to your kids, you have an estate.

An estate plan drafted by a professional estate planning attorney will protect your financial security and the security of your family. This estate plan will include how your estate is accumulated, conserved, and distributed. It also states who should oversee matters if you become unable to make decisions yourself.

Four Things You Should Include In Your Estate Plan

1. Will

A properly executed will is the foundation of your estate plan. It allows you to decide how your assets and belongings should be distributed (Ex: homes, cars, heirlooms, investments, business interests).

2. Trust

A trust can help you avoid probate and allow your beneficiaries quicker access to your assets. Certain trusts, such as an irrevocable trust, may have tax benefits, thereby leaving even more of your assets to your family.

3. Healthcare Directives and Powers of Attorney

These documents will let your loved ones know your healthcare decisions should you become incapacitated and unable to make those decisions for yourself.

4. Tax Information

The structure of your estate plan can be affected by gifting, income, and estate tax planning. In order to avoid any potential problems, it’s advisable to consult with an estate planning attorney on the best strategy for your particular needs.

What Can An Estate Plan Do?

Having a well-crafted estate plan will allow you to:

Select a Personal Representative– This person will be responsible for distributing your assets. If you fail to appoint a personal representative, the court will choose a person for you.

Designate Guardians for Minor Children– As a parent, this is one of the most important estate planning decisions. If you have minor children, the only way to designate a

guardian for them in Arizona is through your Will. Doing so will allow you a chance to decide who will care for them when you are gone.

If you fail to designate a guardian, the court will choose a person for you. Now, think of your current family dynamics and extended family. Are there people you definitely do not want to raise your children? Well, if you don’t designate a guardian, the court may very well appoint them as the guardian. Let that sink in. And then, for the sake of your minor children, contact a lawyer to get your will drafted.

Organize your records– Estate planning allows you to organize vital financial documents and records (such as deeds, financial accounts, investment accounts, insurance policies, etc.) and make sure they’re in a safe place.

Protect Your Family– Without clear and legally valid instructions on how to handle your estate, your family may be overwhelmed or disagree over next steps. These disagreements can lead to family estrangement and prolonged estate litigation. Your estate plan will lessen their stress during an unbearable time.

Contact Us

It’s critical to work with an experienced lawyer when creating your estate plan.

An attorney can explain your choices and the potentially complex results of each choice. They can also help you state your desires in a clear manner, avoid errors, minimize estate taxes, and update your estate plan as your life situation changes.

At Brown & Hobkirk, PLLC we will guide you through the entire process. Contact us today to schedule a consultation.