These key legal instruments work together to protect your assets, your health, and your family’s future.
Who will make decisions for you if you cannot? How can you be sure your wishes are honored and your family is protected? A complete estate plan answers these questions, giving you control and peace of mind. The following legal documents form the backbone of a solid Arizona estate plan, each serving a unique purpose for your finances, health, and personal property.
Everyone can benefit from estate planning, which allows you to determine how your money, real estate, and other assets will be distributed after your death. Estate planning documents will enable you to draft an advanced healthcare directive, make plans for minor children or other dependents, and determine who will hold your medical power of attorney.
Estate planning gives you peace of mind about:
- Financial matters, estate taxes, investment accounts, retirement accounts, and life insurance policies
- Who will hold the medical power to make healthcare decisions if that becomes necessary
- Beneficiary designations that allow you to determine how your assets are divided
Let’s discuss some crucial estate planning documents.
1. Last Will and Testament
Your will spells out exactly how you want your assets distributed after your death. You decide who receives your property, cares for your minor children, and manages your estate. In Arizona, a will-based plan means your estate will pass through probate court: a process that becomes public record, time-consuming, and costly if disputes arise.
A Living Trust is an essential estate planning document that can allow you to avoid probate if executed correctly. If you use a Living Trust, your will becomes a “pour-over will.” This acts as a safety net, catching any assets you forgot to place in your trust and directing them into the trust after your death. That way, even overlooked property is distributed according to your wishes.
Mini-tip: Review key details of your will every few years, especially after major life events, to keep it current and effective.
2. Durable Power of Attorney (Financial Power of Attorney)
This estate planning document lets you appoint someone you trust to handle your financial affairs if you become incapacitated. Your agent can pay bills, manage investments, and file taxes on your behalf. Even with a Living Trust, a financial power of attorney is essential for assets or tasks outside the trust. A Durable Power of Attorney is crucial to the estate planning process.
Example: If you’re hospitalized and unable to make financial decisions, your agent can step in immediately to keep your finances running smoothly. Make sure your agent is someone you trust with your financial information.
3. Health Care Power of Attorney
You choose a trusted person to make medical decisions for you if you cannot speak for yourself. This agent can talk with doctors, access your medical records, and ensure your treatment aligns with your wishes. Without this document, Arizona law may leave these choices to a court-appointed guardian.
Mini-tip: Have a conversation with your chosen agent about your values and preferences before an emergency arises.
4. Living Will
A living will provides clear instructions about your preferences for end-of-life care. You specify whether you want life-sustaining treatments, artificial nutrition, or resuscitation if you are in a permanent, irreversible vegetative state. This document relieves your loved ones from making agonizing decisions without guidance. A skilled estate planning attorney can ensure your living will frees family members from making difficult healthcare decisions if you’re placed on life support or otherwise unable to make decisions on your own.
Question to consider: Would you want to be on life support if doctors believe recovery is impossible? Your living will answers that for your family.
5. HIPAA Authorization
HIPAA laws protect your medical privacy, but can also block your loved ones from accessing vital information. A HIPAA Authorization gives your chosen agents permission to view your health records and communicate with your healthcare providers. This ensures that your representatives have the information they need to act quickly and in your best interest.
Mini-tip: List all agents and alternates on your HIPAA form to avoid delays in care or confusion at the hospital.
6. Personal Property Memorandum
Creating this simple document allows you to list specific assets—such as jewelry, art, collectibles, and furniture—and designate who should receive each one. It covers tangible personal property, not real estate or financial accounts. A personal property memorandum helps prevent family disputes over sentimental belongings and can be updated without revising your entire estate plan.
Example: You can leave your grandmother’s wedding ring to your daughter and your favorite guitar to your nephew, all in writing. If you change your mind, you can destroy this document and sign a new one based on your new preferences, all without updating your will or trust.
Need to Prepare Your Essential Estate Planning Documents?
With these documents in place, your wishes will guide every decision about your health, your assets, and your legacy. If you’re missing any of these essentials or want to review your current plan, now is the time to act.At Sorrell Estate & Probate Attorneys, we understand the importance of estate planning during every stage of life. Request a consultation to discuss your specific estate planning goals or call us at (480) 660-6940.