North Scottsdale Estate Planning: How To Get Started
In case you haven’t heard, Rilus Law is back in North Scottdale! We’re excited for our clients who, for some time now, have been wishing for us to reopen our office there. And with a reintroduction to the area, we’re sharing an introduction to North Scottsdale estate planning covering the strategies or tools you can use when planning. This post also outlines the steps in creating an estate plan, noting some essential Arizona estate laws you must consider.
What is Estate Planning?
Estate planning is the task of identifying and distributing your estate or the assets and properties you leave when you die. With an estate plan, you can issue instructions and make special arrangements for your estate. Without an estate plan, probate, or a legal court process, will make the decisions for you.
Estate planning sounds like a complex task, but it’s not. In some cases, you don’t even need a lawyer to help you.
Estate Planning Strategies and Documents
Depending on your estate and unique situation, you can use the following estate planning tools:
Intestate Succession
This is the default means of transferring an estate when a person dies without an estate plan. In intestate succession, state laws decide on the distribution of your estate without considering any wishes or directions you might have. This is not ideal for most people today, as modern families and relationships don’t fit the generic state intestacy laws. Unfortunately, that results in unmarried partners being left out, children from past relationships causing the court to require your spouse to sell the family home, or your estate going to estranged family members instead of the loved ones you would have preferred. This is why you must put your wishes in writing.
Last Will and Testament
This is the most common and accessible tool for estate planning. A will is where you instruct the distribution of your estate to your beneficiaries, assign guardians for your minor children, and identify the personal representative or executor of your estate. Arizona allows for a handwritten will to be valid, which means you don’t have to go to an attorney or spend any money to communicate how you would like your estate handled. We’ve taken the handwritten will option a step further and have put together a fill-in-the-blanks template so you can have a 100% legally valid will in a matter of minutes. Download your Last Will and Testament Template here today.
Beneficiary Designations
Many financial accounts and some assets offer beneficiary designations. These include payable-on-death bank accounts, life insurance, and even Arizona state-registered vehicles with a beneficiary form from the Motor Vehicle Division. Beneficiary designations provide these accounts with instructions that when you die, the account and its contents will pass on to your beneficiary. However, there are two important things to note with beneficiary designations:
You need to check them and update them regularly. (Is your ex-partner still on your life insurance? Did you designate a now-deceased sibling to receive your vehicle?)
You must make sure they don’t conflict with your estate plan. If you designate a bank account goes to your child but your will says it goes to your sister, then your loved ones will run into issues settling your estate.
Trusts
These are legal agreements where a separate entity is created to manage an estate while the owners are still living and when they die. Trusts come in many forms for different purposes. They provide asset protection, greater privacy, and offer many more benefits. However, it is best to consult with an experienced trust attorney to choose the best trust for your needs. In our free Personal Family Legal Session, you can ask all of your trust questions and leave with a flat-rate quote for your estate plan. Give us a call to book today.
Title Options
How you take title to assets also contributes to what happens to those assets when you die. Joint ownership has several types with varying requirements and provisions, including:
Tenants in Common - This is the default title option and each individual’s share would go to their estate, not automatically to the other property owner(s).
Joint Tenants with Rights of Survivorship (JTWROS) - The rights of survivorship detail means that when an owner dies, their share of the property goes to the other owner(s).
Community Property with Rights of Survivorship - This title option is for married couples and the rights of survivorship are presumed.
Taking Title in a Trust - Many people choose to move their real estate into their trust as part of the estate planning process.
Gifts and Donations
Another valuable estate planning tool, gifts can be ideal for distributing assets to your family, friends, or charity while you are alive. There are federal limits on gifts when it comes to taxes. So, it is best to discuss this strategy with an estate planning attorney and your financial advisor.
How to Start Estate Planning in North Scottsdale?
Below are the steps we recommend you take to get started on planning your estate in North Scottsdale:
Inventory your assets. You can’t plan your estate properly if you don’t have a clear idea of what your estate consists of. Make a list of your tangible assets like your house or real estate, vehicles, collections, intellectual property rights, etc. And don’t forget to list your intangibles such as bank and investment accounts, life insurance policies, retirement plans, health savings, business ownerships, etc.
Make a list of your liabilities. When you die, you also leave behind your debts and other liabilities. A list of your liabilities makes it easy for your personal representative to contact your debtors and notify them of your death. Your list should include mortgages, lines of credit, and other payables to individuals or organizations.
Consider your family or relations. Account for the needs of the people you leave behind when you die. If your current life insurance is inadequate to cover your dependents’ needs, consider getting additional coverage. If you have minor children, now is the time to identify a guardian for them in the event of your death and draft your will to formally state your intentions.
Create your legal directives. Once you know what your estate and beneficiaries need, it's time to establish your directives which are notarized instructions like trusts, medical care directives, and power of attorney. These ensure your estate is protected and managed according to your instructions.
Consider your state’s estate laws and taxes. Depending on your state and the size of your estate, you might need to pay estate taxes and inheritance taxes. Arizona is one of the 38 states having no estate, inheritance, or gift taxes. But the size of your estate might be large enough to qualify for estate taxes at the federal level.
Review your beneficiaries. Ensure that your listed beneficiaries on all your estate planning documents are accurate and consistent. Update your beneficiaries as soon as you make a change. It is also wise to identify contingent beneficiaries in case your current beneficiaries die before you do.
Consider professional help. Large estates, complex beneficiary situations, business issues, and complicated asset ownership are some common factors that make estate planning difficult. Furthermore, an expert estate lawyer will be able to guide you through the process and create an effective estate plan.
Top-Rated North Scottsdale Estate Planning with Rilus Law
Now that you have gained valuable insights into the world of estate planning and the tools at your disposal, it's time to take action and secure the future of your assets and loved ones. Rilus Law, your trusted partner in estate planning, is thrilled to announce our return to North Scottsdale. We are here to provide you with top-rated legal assistance and guide you through the intricacies of creating an estate plan tailored to your unique needs.
With our expertise and personalized approach, we can help you navigate the complexities of estate planning effortlessly. Our team of experienced professionals will work closely with you to ensure that your wishes are accurately documented and legally protected. From drafting a last will and testament to establishing trusts and considering beneficiary designations, we have the knowledge and resources to guide you every step of the way.
To kick-start your estate planning journey, we invite you to book a free Personal Family Legal Session with our top-rated estate planning team. During this session, you will have the opportunity to discuss your unique situation, ask questions, and receive tailored guidance from our experts. We will provide you with a comprehensive understanding of the options available to you and deliver a transparent, flat-rate quote for your estate plan.