Estate planning can be a daunting and somewhat overwhelming task for someone who does not know where to start. However, drawing up an estate plan is one of the most important things you can do for your loved ones. An estate plan helps to ensure that the transfer of your assets to your loved ones goes smoothly and according to your wishes. Having a plan may be especially important when there are children or vulnerable adults involved. To get started, you will want to learn answers to the most frequently asked estate planning questions, the steps of the estate planning process, factors to consider in estate planning, and the most common mistakes. When you are ready to plan your estate, consider working with an experienced Arizona estate planning attorney from Harrison Law, PLLC., Call (480) 320-2310 today to schedule your consultation.
What Are the Most Common Estate Planning Mistakes?
Ensuring that your Last Will and Testament clearly identifies the individual you wish to serve as the personal representative of your estate is among the most important factors to get right at the outset. The Arizona State Legislature establishes relatively few restrictions on a testator’s choice in this matter, but it is still a good idea to become familiar with the state process and requirements. Knowing a few of the most common estate planning mistakes may also help you to avoid potential problems as you move through the estate planning process.
Planning Your Estate Without Help
One of the most common mistakes a person may make is planning his or her estate without help. Estate planning attorneys have experience dealing with all aspects of their clients’ estates. An attorney will know how to protect the estate, manage the tax component, and ensure that assets go to the decedent’s loved ones according to his or her wishes rather than to the state or creditors. Those who get help with the estate planning process may be less likely to leave out important components.
Not Routinely Updating Your Estate Plan
Anyone who has already established an estate plan should regularly check to make sure that the plan is up to date and that all current assets are appropriately included. Whether you have acquired new property or undergone a significant life event like marriage, divorce, or the birth or adoption of a child, updating your estate plan will help to ensure that your assets will be distributed to the right people upon your death.
Not Addressing Health Care in Your Estate Plan
Many people eventually experience a time when they can no longer make their own medical decisions. In those situations, advance directives for health care, which the National Institute on Aging separates into the two categories of living will and durable power of attorney for health care, can provide guidance to family and doctors for the important decisions regarding the person’s care.
Failing To Fund Your Trust
Creation of a trust for your estate plan has several advantages. Most important is the ability to avoid Probate through the legal system. However, to take full advantage of the benefits of a trust, individuals need to make certain that their financial plan is in synch with their estate plan and trust. This is often referred to funding your trust. Failure to do so significantly increases the odds that an estate will need to go through probate. Individuals need to make certain that their ownership and beneficiary information on real estate, life insurance policies, retirement accounts, and investment accounts follow the same pattern as their estate plan. Then, when an individual’s financial circumstances change, he or she needs to pause and make certain these changes remain in synch with his or her estate plan and trust. These updates are especially important after new financial and life events (that will always happen) occur over time.
What Are Estate Planning Questions to Consider Either for Yourself or for Your Parents?
Whether you are planning your own estate or helping your parents with their estate planning, there are some important questions that you may want to ask during the planning process. The answers can help to ensure that the estate plan will cover all matters and protect your family as intended. Consider the following three critical estate planning questions:
- What happens if the individual cannot make their own decisions?
- Who is going to take care of the estate planner’s children if they cannot do it themselves?
- What should happen to the individual’s property after their death?
These are just three of the many questions that you may want to consider during the estate planning process. They cover the basics of caring for yourself, guardianship of your children, and disposition of property. Individuals may also want to consider where they keep financial records, where their finances are currently held, how they want to distribute assets when they have multiple children or other family members or friends to receive those assets, and other important questions. An experienced estate planning attorney from Harrison Law, PLLC, may be able to help determine the best considerations for your specific situation. When planning your estate, consider whom you want to protect, what you want to protect, and how you want to be protected.
What Are the Main Priorities To Ensure With Your Estate Plan?
While estate planning may feel overwhelming, individuals can simplify the process by covering these three main priorities:
- Assets and who will control them—Understanding the assets you have and your plans for them after you are gone is crucial to the estate planning process. You will consider whether you want to place your assets in a trust or name them in your will. If you choose a trust, you will need to determine who will control your assets and whether or not you will have the right to revoke your trust.
- Family and other beneficiaries––—The estate plan should clearly state who receives your assets to avoid conflict among likely beneficiaries. Being as clear and precise as possible in the estate planning documents can help to maintain a healthy family dynamic.
- Health care and personal plan—This portion of your estate plan is about determining what will happen to you if you become incapacitated. Consider where you want to live in the event that you can no longer live on your own. Consider specific assisted living communities, in-home care, and other options. These considerations made in advance can help to ensure that you will be cared for in the manner that you want and can take much of the burden of making these decisions off your family.
What Are the Steps in the Estate Planning Process?
After reviewing all the aspects that you need to consider when creating your estate plan, it is time to begin the estate planning process. The National Council on Aging (NCOA) provides a checklist for estate planning, much like the following steps of the estate planning process:
- Create an inventory of your possessions and assets
- Consider your family’s needs after your death
- Determine your beneficiaries
- Write out how your estate will be divided
- Make sure your documents are properly stored
- Regularly update and review your estate plan
Contact an Arizona Estate Planning Lawyer Today
Estate planning is a necessary but often complex process that everyone should take time to complete. You may be an estate planning beginner, or you may have made a plan but have not updated it since your last major life event. If you have questions about planning your estate, consider contacting an experienced estate planning attorney from Harrison Law, PLLC, by calling (480) 320-2310 to learn more about your estate planning options today.
© 2023 Matthew W. Harrison and Harrison Law, PLLC All Rights Reserved
This website and article have been prepared by Harrison Law, PLLC for informational purposes only and does not, and is not intended to, constitute legal or financial advice. The information is not provided in the course of an attorney-client relationship and is not intended to substitute for legal advice from an attorney licensed in your jurisdiction.
