Top 10 Estate Planning Tips

There’s more to estate planning than just writing your will. You also need to account for all your assets, maintain proper recordkeeping, and complete all beneficiary designation forms.

By crafting a solid estate plan, you’re creating less work and stress for your survivors. The following ten items on this To Do list can help guide you through the process:

1. Speak to a Qualified Estate Planning Attorney

Meeting with an attorney to create your estate plan can help empower you and your family by bringing you peace of mind. The last thing you want is for any of your estate planning misconceptions forcing your family members to sift through preventable legal matters while they’re grieving your loss.

An experienced lawyer will help educate you on the estate planning process. They will also help guide you on the necessary steps and will ensure that your legal documents are properly drafted.

2. Itemize Assets

Make a list of all your tangible valuable items. Examples include your home, any other property you own, jewelry, electronics, collectibles, vehicles, antiques, art, power tools, recreation vehicles. You may also want to add notes next to each item for who should receive it after your death.

Next, start adding your non-tangible assets to your list. This will include things you own on paper or other entitlements that are predicated on your death. Examples include brokerage accounts, 401(k) plans, IRAs, bank accounts, life insurance policies, and other policies such as long-term care, homeowners, auto, disability, and health insurance. You will also want to add any digital assets you own (social media accounts, online subscriptions, etc.) and speak to your attorney about how you want those digital assets managed after your death.

Make sure to include all account numbers and list the location of any physical documents you have in your possession. You may also want to also list contact information for the firms holding non-tangible possessions.

3. List Debts

This should include items such as credit cards, auto loans, mortgages, home equity lines of credit (HELOCs), and any other debts you might owe.

Again, add all account numbers, the location of signed agreements, and the contact information of the companies holding the debt.

4. Review Retirement Accounts

Accounts and policies that have designated beneficiaries will pass directly to those people or entities upon your death. It doesn’t matter how you direct these accounts or policies be distributed in your will or trust; the beneficiary designations associated with the retirement account will still take priority. For example, if you’ve recently divorced, remarried, adopted, or had deaths of beneficiaries, it’s particularly important to review and update your beneficiary designations.

Contact your employer’s plan administrator for a current listing of your beneficiary selection(s) for each account. Review each of these accounts to make sure the beneficiaries are current and listed exactly as you like.

5. Assign Beneficiaries

Many accounts, such as bank savings, CD accounts, and individual brokerage accounts, can be set up—or updated by completing a simple form—to have a payable on death (POD) or transfer on death (TOD) designation.

These types of designations let beneficiaries receive assets without going through the probate process. Contact your custodian, bank, or financial institution to set this up on your accounts.

6. Nominate Guardians for Minor Children

As part of Arizona estate planning, parents can nominate a responsible adult to take over the care and protection of their minor children if something happens to them.

The best way to ensure your minor children continue to live the quality of life you currently provide and to build a solid foundation for their future success is to choose the right guardians to care for them if you or your spouse can no longer do so.

If you fail to nominate a guardian for your minor children in your estate plan, the Arizona courts will decide who should take care of your kids.

7. Select a Personal Representative

Choosing a personal representative shouldn’t be taken lightly, as they will yield a considerable amount of power over your estate.

Most people choose their spouse or adult child. Now, it’s also common to see an extended family member, close friend, or other trusted advisor named as the personal representative.

Your goal in selecting a personal representative is to choose someone responsible and trustworthy; someone who will be able to fulfill your wishes, even if they are faced with contesting relatives.

8. Ask an Attorney to Draft your Will

When it comes to your life, your property, and your legacy don’t entertain the possibility of making any critical errors. This is why you shouldn’t draft these critical documents yourself.

Meet with an estate planning attorney to ensure your documents are valid, accurate, and precise. An attorney can draft your will, so that it’s valid and sound according to Arizona law. Your lawyer will also make sure to draft your will so that it accurately reflects your wishes, while also correctly defining your intentions for the treatment of yourself and the disbursement of your property.

If it isn’t drafted correctly, when the time comes, it will be too late for you to make any corrections after your passing or incapacitation.

9. Review Documents Periodically

It’s imperative to review your estate planning documents periodically. Depending on your situation, it’s advisable to review every 3-5 years.

A good rule of thumb is to review anytime there are big life changes (marriages, divorces, adoptions, or deaths), so that your documents can be updated accordingly.

10. Keep your documents somewhere accessible

The worst-case scenario for estate planning is that you do all of this work, commit the time and fees only to have the records unavailable when it’s time to utilize them.

You want all this planning to be worthwhile by ensuring all relevant material can be quickly located when needed. Make sure to notify close relatives, your personal representative, or trusted advisors on where you keep your documents.

If you choose to keep your documents in a safe—make sure your personal representative will be able to quickly access the documents. This is why it’s not advisable to keep your documents in a safety deposit box (Example: if you become incapacitated due to a medical emergency, your family would need to go to the bank to access your safety deposit box; if this happens after hours, on a weekend, or over a holiday, your family will need to wait until the next business day to gain access).

Contact An Arizona Estate Planning Attorney

The estate planning lawyers at Brown & Hobkirk, PLLC know it’s difficult to think about what could happen if you were to die or become incapacitated.

However, we also know how important this type of planning can be.

We will walk you through the entire estate planning process, approaching each step with compassion and support. We know you want the best for your family, and we can help you make sure they are taken care of.