Death is something that most people do not like to think about or discuss, which explains why so many Americans postpone estate planning until it is too late. However, failing to plan ahead is essentially neglecting to protect assets, health, and the future of loved ones. Many people avoid setting up an estate plan because they do not understand what the process entails. Learning the answers to some of the most common estate planning questions can help you to better understand the process and have the confidence to approach estate planning with a practical mindset. To get answers to more of your estate planning questions or to begin the estate planning process, contact an experienced Arizona attorney from Harrison Law, PLLC. Call (480) 320-2310 today to schedule your personalized consultation.
Five Frequently Asked Questions About Estate Planning
Any person may be intimidated by the mere thought of dying. If you become paralyzed by fear or confusion when considering creating an estate plan, know you are not alone. Millions of Americans do not have an estate plan in place. According to a survey cited by the American Association of Retired Persons (AARP), six in ten Americans do not have a Last Will and Testament (will) or a living trust.
The estate planning process can be simple or complex, depending on the individual’s situation. An experienced estate planning attorney may be able to review your particular circumstances and offer tailored advice; in the meantime, however, gaining answers to even a few of the most common estate planning questions can help many people to feel more comfortable and prepared for the process of setting up an estate plan.
Is Estate Planning Just for Determining Who Inherits What?
Many people set up an estate plan for the simple purpose of ensuring that their property goes to the intended beneficiaries among their family members. However, a comprehensive estate plan can accomplish much more than just determining who inherits what. In addition to enabling a person to make decisions about the distribution of their assets, an estate plan can also help beneficiaries reduce taxes and avoid probate. A comprehensive plan can designate guardians for minor children, or establish trusts to ensure beloved pets are cared for. The right estate planning documents may also name a person(s) to make vital decisions about the principal’s finances, healthcare, and personal affairs in the event of that individual’s incapacity.
Should I Worry About Estate Planning if I Do Not Have Many Assets or Am Not Wealthy Enough?
There is a common misconception that only wealthy individuals who have accumulated an expansive portfolio of assets need an estate plan. However, estate planning is not exclusively for the rich. No one needs to wait until retirement, or to become a millionaire, before working on an estate plan. For any person of sound mind who is at least 18 years of age and owns anything of value—a house, an automobile, or even a bank account—it is worth the time and cost to create an estate plan.
Having an estate plan in place can reduce the potential for conflict between family members who might otherwise be tempted to fight over an inheritance. An estate plan can specify who should inherit which assets, and designate a trusted person who will take over affairs in the event of incapacity. Careful estate planning can benefit the planner as well as his or her beneficiaries.
When Should I Begin Working on My Estate Plan?
One of the most common estate planning questions is about the best time to get started. The simplest response is: The sooner, the better. Many people who understand the need for an estate plan nonetheless seem to be under the impression that they do not need one yet.
The reality is that life can be unpredictable. Not having an estate plan means leaving everything to chance. With a plan in place, you can shield your legacy and loved ones from unforeseen circumstances and events. An estate planning attorney from Harrison Law, PLLC, may be able to help you decide when to start based on your circumstances.
Do I Need To Update My Estate Plan in the Future?
While having an estate plan is good, having an outdated plan can in some circumstances be worse than not having a plan at all. Many people tend to neglect updates once they have an estate plan in place. However, it is critical for anyone who has gone to the trouble of creating an estate plan to keep that plan aligned with their current wishes and objectives, any of which can change due to major life events.
When you have an estate plan in place, it is generally helpful to review and update your plan every three to five years. However, certain life events that may require immediate revision include acquiring or selling significant assets, getting divorced or (re)married, having children, losing a family member, and moving to another state or country, among others.
Can I Use DIY Online Estate Planning Tools Instead of Hiring an Attorney?
The Internet seems to offer endless opportunities for setting up an estate plan without having to leave home or hire an attorney. Online estate planning tools and do-it-yourself solutions are available to help a person create a will, a living will, a power of attorney, and other estate planning documents. However, some risks may be associated with using these tools. A person who goes the DIY route may end up with an inaccurate or invalid document and may not realize this until it is too late to do anything about it.
When using online tools that help with creating estate planning documents, a person must be sure that they are in compliance with the laws of his or her state. In Arizona, Ariz. Rev. Stat. Ann. § 14-2502 requires every individual who creates a will to have the document signed in front of two witnesses, along with some other requirements. Those who choose to work with an attorney can be confident that their estate plan will be accurate, valid, compliant with state laws, and tailored to their specific goals, needs, and wishes.
Speak With an Arizona Estate Planning Attorney Today
Individuals approaching the topic of estate planning may have many questions on their minds.. If you are ready to get your estate planning questions answered and begin the planning process, consider contacting an experienced estate planning lawyer at Harrison Law, PLLC, for knowledgeable guidance regarding all aspects of creating a plan. Schedule a consultation by calling the office at (480) 320-2310 today.
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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.
