Estate planning in Arizona can be intimidating, but it doesn’t have to be. With this guide, you will learn the basics of estate planning – Arizona laws plus tips on how to create an efficient and secure estate plan for yourself and your family.
Create a Will in accordance with State Law.
In Arizona, the best way to ensure that someone of your choosing will carry out your wishes for you estate is by creating a Will. A Will can be customized to fit your specific needs. For example, you can state who will inherit your assets. You can even provide necessary arrangements for minor children or pets. An important factor in creating a Will in Arizona is following the various state laws that govern how it should be written and executed. That’s why it’s essential to speak with an experienced estate planning Arizona attorney who understands these laws.
Create a Trust to Protect your Assets and Heirs.
A trust is another common estate planning tool that allows you to designate beneficiaries and make sure that the distribution of your assets is carried out according to your wishes. Setting up a trust in Arizona requires formal documents, so it’s important to consult with an attorney who can guide you through the process. Additionally, trusts provide additional security for minors or disabled family members. That’s because a trustee handles the administration of their inheritance rather than leaving it up to individuals who may not be financially responsible.
Get Health Care and General Power of Attorney Documents.
Having health care and general power of attorney documents in place is essential for any estate plan. They allow a designated person to make financial and/or medical decisions for you if you become incapacitated. You can name a close friend or family member to this position. With a power of attorney, you can assign someone to manage your property and finances. The person you name can also sign contracts on your behalf and handle banking transactions. It’s important that you understand the wording of these powers. Also make sure you know how long the documents are valid for and when they go into effect.
Strategize Tax Planning Strategies for Your Family’s Future Prosperity.
Arizona has a progressive income tax system with some of the lowest top marginal tax rates in the country. But you can inadvertently trigger higher taxes if you name a trustee from a state with higher income tax rates. There are various techniques to consider when it comes to tax planning. For example, you can use trust vehicles to pass assets outside of your estate and avoid estate or generation-skipping transfer taxes.
It is important to consult with a professional planner who is familiar with Arizona tax laws. In that way, you can ensure your family achieves maximum financial success.
Understand Your Options: Estate Planning Arizona Laws.
When it comes to estate planning – Arizona offers quite a few option. The state follows the Uniform Probate Code, which clearly spells out the legal requirements for the various estate planning documents.
Your main choice is whether you want a will-based plan or a trust-based plan. The main difference is whether you want to help your loved ones avoid probate. There are other factors to consider as well. We cover this in more depth in our post called What Is The Difference Between A Will And A Trust.
The Arizona statutes also describe how to best ensure your wishes and assets will be taken care of according to your preferences. A qualified Arizona attorney can help you determine what works best for you and your family when creating an estate plan.
Trying to do it yourself can create problems for your family. Even if you don’t hire our firm, at least get an experienced law firm to help you. (Of course, we would prefer that you hire us!)
Let Our Estate Planning Arizona Attorneys Help You.
We understand that you want to do research first. That’s why you found this blog post. But it will be easier for you if someone can listen to your situation and explain your options. We’d love to help. Just give us a call at 602-443-4888. We’re here to help.