Keep Them Up-to-Date.

We cannot stress enough how important it is for you to have estate planning documents to protect yourself and your loved ones before the inevitable (your death) happens.

But equally important is the fact that once you have these documents in place, you should not just forget about them. When life’s major events occur— births, deaths, divorce, acquisitions of homes/property etc.—it is necessary for you to update your estate planning documents.

Why?

Because certain events, like divorce or someone’s death, can completely change the effect of your will or your overall estate plan. For example, if you have a simple will in which you leave everything at your death to your spouse, and then you get divorced, you are going to want to update your will. Or, if someone you left a bequest to dies, if you do not update you will to leave that bequest to someone else, when you die, that bequest will fail or be void.

Problems with outdated estate planning documents, like a power of attorney that is never updated after the named attorney-in-fact dies, can cost your beneficiaries a lot of time, money, and headaches to try to fix.

Your life, your legacy, your estate and your loved ones are all too important to be ignored.

Talk to an Estate Planning Attorney!

If you have questions or need help putting an estate plan in place or updating the one you have, call us. We offer creative, affordable Will packages through our Legacy Estate Planning process. We have offices in Sedona, Arizona. We serve Verde Valley and all of Arizona. We offer free consultations and we can help you with your estate planning needs. E-mail us here or call 928-282-1483 to set up your free appointment.

Although they are for the benefit of the ward, guardianships are a rather extreme form of intervention in another person’s life. This is because they give the guardian control over all of the ward’s personal and financial decisions—often permanently. Guardianships can also be difficult to revoke once they are in place.

But there are alternatives to complete formal guardianships that are overseen by the court.

Here are 3 possible alternatives:

1. A Living Trust.

A Living Trust is a legal entity that comes into existence during your lifetime. A Living Trust is capable of owning financial assets, real estate, and/or other property. It can be used to avoid the complications of court oversight and probate that a formal guardianship imposes.

2. A Health Care Power of Attorney.

While this one is more limited than a Living Trust, a Health Care/Medical Power of Attorney and a Mental Health Care Power of Attorney are in Arizona where we practice, (also called “Advance Directives” or “Medical Power of Attorney” in some states) allows a person to make medical decisions for another. This document includes the types of provisions you usually find in a “Living Will,” which is a document that you use to indicate what your wishes are with regard to feeding tubes and/or artificial life support, should you become incapacitated.

3. A Durable Power of Attorney.

Also more limited when compared to a Living Trust, this alternative to a full guardianship is still very powerful. A Durable Power of Attorney allows someone to control the finances and make all financial decisions necessary for the incapacitated or otherwise incapable person.

Guardianships have their place. But there are also less intrusive ways to assist a loved one with their personal or financial decisions.

Want to Learn More?

We can help. We are experienced trusts and estates attorneys in Arizona. We offer free consultations, and we serve all of Arizona. Our offices are located in beautiful Sedona and we serve Verde Valley as well. We can help you provide and plan for your loved ones. Call us at 928-282-1483 or contact us here.

Living Together, Torn Apart Without an Estate Plan.

Unlike married couples, cohabiting partners do not have the legal right to make the necessary health and financial decisions for each other in the event one of them becomes incapacitated. That means that if you do not have a valid estate plan, and your partner becomes too ill or injured (think, lying there in a coma) to make his/her own decisions, you will not have the legal right to pay his/her bills or make any decisions about his/her medical care — including feeding tubes and life support. Should your partner die, (absent an estate plan) the state will decide how his/her property is to be distributed —and it will not go to you.

Cohabiting couples also do not qualify for the unlimited marital deduction for estate and gift taxes for transfers of property between themselves. You can minimize these adverse legal effects by seeking advice of experienced trusts and estates counsel.

It is important that cohabiting couples get an estate plan in place, because without one, neither partner is protected in the event of death or incapacity. Do not just assume that your partner “will be taken care of.” The reality is that in the event of the death of one cohabiting partner, the other just may lose everything — home,  partner, property, and the life the two of you built over the years.

Estate Planning is Necessary and Affordable.

At Esser, Bradley and Khalsa, our estate planning attorneys will work with you during a FREE consultation to discuss your specific needs. We are experienced trusts and estates counsel with offices in beautiful Sedona, but we serve all of Arizona. Call us at 928-282-1483, connect with us on Facebook  today to set up your free appointment.

What is a Residuary Clause?

In your Will, you make specific gifts or bequests of your property to individuals (family members and friends). You will usually make specific bequests like: “I leave my car to Bob.” Or, “I leave my diamond bracelet to Sally.” But it is very likely that you will not list every single item of property that you own, and you may even overlook or forget some property so that it never makes it into your will. In probate law, whatever property remains after all claims have been satisfied and after all specific gifts and bequests are made is referred to as the “residuary estate.”

A “Residuary Clause” in a Will gives the right to all the leftover or forgotten property (i.e.  the residuary estate) to whoever you name as the beneficiary(s) to it. Failed or void gifts also go into the residuary estate. So, for example, if Sally dies and then you die, (and you did not update your Will) your gift of the diamond bracelet to Sally will fail and will go into the residuary estate. Which means it would be given to your residuary beneficiaries.

Another great thing about a residuary clause is that it also captures property that is acquired after your will was written, and therefore not specifically mentioned in your will.

Residuary clauses are important estate planning tools. That is why we always stress that you should have your estate planning documents prepared by  experienced and knowledgeable estate planning counsel.

We Can Answer All Your Questions.

If you want to know more about wills or residuary clauses, call us. We are experienced trusts and estates counsel in Arizona. Our offices are in beautiful Sedona, but we serve all of Arizona. We offer free consultations, and we can answer all your questions and help you. Call us at 928-282-1483, connect with us on Twitter or send us an e-mail.

Joint Tenancy.

A joint interest in land is where two or more people own shares (equal or unequal) under title that is created by a single transfer, or by a Will, where it is expressly declared that the transfer is intended to be a joint tenancy.

There are different types of joint interests, but the most common one is a “joint tenancy.” A joint tenancy carries with it the right of survivorship. With a joint tenancy, two people own the property together in their respective shares, but each has a right of survivorship. That means that if a joint tenant (“JT” #1) dies, the surviving tenant, JT #2 inherits his share – giving JT #2 the entire property interest.

The more joint tenants you have, the more complicated it gets. For example, if there are 3 joint tenants and they each own equal shares in the property (say they each own 1/3) and one dies, the other 2 will inherit JT#1’s one-third interest —giving JT#2 and JT#3 each an undivided ½ interest in the property.

There are More Types of Joint Property Interests. 

Joint tenancies with a right of survivorship are not the only joint interest that can be created in property. There are many more. What is right for you and your heirs depends on your unique circumstances. Talk to your estate planning attorney about your goals and your desires for your property.

Seek Professional Advice.

To find out what is the right way for you to leave your property to your heirs, speak to an experienced trusts and estates attorney.  We are estate planning attorneys with offices in Sedona, Arizona. We offer free consultations and we are available to service all of Arizona. We can help you with your estate planning needs. Connect with us on Facebook , Twitter or LinkedIn or Contact us to set up your free appointment.

What is a Prenup?

Prenuptial agreements are contracts made between two people before they get married (pre (before)-the-nuptials). These are private contracts made between two people and they generally concern things about their marriage; including the financial aspects of it. In Arizona, where we practice, prenups are enforceable as long as their terms do not violate good morals or the law and do not encourage divorce.

Prenuptial Agreements and Estate Planning.

Arizona is one of several states (there are nine in all: Wisconsin, Idaho, Texas, New Mexico, Louisiana, Arizona, Washington, Nevada and California) that are community property states. What this means is that property acquired during marriage is considered to belong to the “community” (the marriage). When a couple in a community property state gets divorced, the community property is divided equally between them. “Separate property” of one spouse (acquired before the marriage or thru inheritance, gift or devise during the marriage) remains that person’s separate property at the time of divorce.

When it comes to estate planning, community property states are unique in how they handle property on the death of one spouse. In a community property state like Arizona, you can only give away your separate property and half your marital property when you die. That means that if you make a will or trust leaving more than 50% of your marital property to someone when you die, the court will not honor your wishes. It will  not allow the transfer of more than your 50%. And, in every state except Georgia, you cannot disinherit your spouse.

Prenups Change the Marital Inheritance Game.

What prenuptial agreements do, is allow couples to change the inheritance rules. If, for example, you have children from a prior marriage, and your new spouse has his/her own assets and does not need yours, you can agree in a prenuptial agreement that all of your property will go to your children and your spouse will get nothing. Or, if you are part of family business that you were involved with long before you ever met your spouse, you can direct that your share of the family business goes to your children at your death and not to your spouse.

Prenups are Powerful and Enforceable.

It bears repeating that valid prenuptial agreements change the inheritance and community property laws. They are both powerful and enforceable estate planning tools. Prenuptial agreements override both community property and elective share law.

Which is why you should always consult with competent counsel if you are considering a prenup or are thinking of signing one.

If you are considering remarriage, it is very important that your estate planning documents are carefully drafted by knowledgeable trusts and estates counsel.

Work with a Trusts and Estates Attorney.

In our practice, we frequently work with blended families. We will sit down with you and go over all your concerns and answer all your questions. We offer FREE consultations. We have offices in Sedona, Arizona but we serve Verde Valley and all of Arizona. Simply call us at 928-282-1483 or contact us here.

Your will is one of the most important documents you will ever execute in your life. What are the chances you will mess it up if you write it yourself or use an online form? Big. Very big.

And what are the chances that anyone can fix any mistakes you made in your Will after you die? Zero.

So writing your own will is not a good idea.

A Critical Estate Planning Tool.

In estate planning, a lot depends on your will and on making sure that your will is correct and error-free. Your will distributes your property to your loved ones, of course, but it can also do much more. A will can:

• name a personal representative or executor to wrap up your estate
• name guardians for your children and their property
• provide instructions for trusts for your children or other young beneficiaries
• reduce conflict by making your intentions clear
• forgive debts, among other things.

All wills must comply with certain legal requirements in order to be valid, and the laws in each state vary as to what is required to make a valid will.

An experienced trusts and estates attorney can not only help you draft a will specific to your unique needs, but can make sure that it is error-free. This is important because errors in a will can render it invalid (in whole or in part) and can cost your estate a lot of time and money—either because they will cause fights among your beneficiaries (will contests) or because they may cause your entire estate to be probated.

Another reason why you should not write your will yourself —either by hand or with a form— is because you may need the advice of counsel. Every situation is unique. Some  people have monetary, property or relationship situations where they need legal, tax, or personal advice. You can’t get that from a form (or non-attorney source). Working with an attorney instead of trying to do-it-yourself can keep you from making costly mistakes.

Talk to Us First.

Before you write your own Arizona will, talk to us. We offer FREE consultations and we serve all of Arizona. We have offices in Sedona, Arizona. Connect with us on Facebook or Twitter  or send us an E-mail  to set up your free appointment today!

Estate Planning for Married Couples.

When it comes to estate planning, no two family situations are the same. This might be a first marriage for some, and it could be the second (or even third) for others. Some married couples have minor children, others are taking care of elderly parents. Some are financially well off and others are just getting started.

Whatever your situation may be, getting an estate plan in place now is essential. And if you already have an estate plan, big changes like getting married mean that it is time to look over and update your plan.

After the Wedding Be Sure To…

There is a lot to do and plan when you are getting married and often, life goes on hold until after the “big day.” But once you are married, there are still a lot of things you need to do.

So here is a quick checklist of some of the estate planning things you will want to review and update:

• beneficiary designations for benefits such as: life insurance, 401K accounts and other retirement savings and other benefits.
• checking and savings accounts,
• IRAs,
• CDs,
• stocks,
• bonds and other assets.

You will also want to review and update any estate planning documents you may already have in place. Or, if you do not have any, get an estate plan now.

Remember, your estate plan includes not only distribution of your property, but important decisions about who will take care of your children if you should die, or how you want to be treated (i.e., do you want to be kept alive artificially) if you become incapacitated. The best way to be certain that your estate plan documents will meet your needs as a married couple is to speak with experienced estate planning counsel.

First Comes Love, Then Comes Marriage…

If you want to put an estate plan together that is customized for your needs, call us. We are experienced trusts and estates attorneys. We offer free consultations. We have offices in Sedona, Arizona and we serve Verde Valley and all of Arizona. Call us at 928-282-1483 or connect with us on Facebook , Twitter or LinkedIn.

But not everyone has a plan for their estate.

What is an Estate?

Regardless of how much money you may have in your bank account, or how many children you may have (or not have)  every adult has an estate. An estate is simply things you own: like a car, a boat, checking accounts, social media accounts, phones, life insurance, a house etc.

If you do not believe that you have an estate, just consider this: if you die without making an estate plan, in other words if you die without a will (called “intestate”) the state in which you live (for example, Arizona if you live where we practice), will divide up your assets according to the intestacy laws. And if you have children but no will, the state will appoint someone to raise your children. The state does not care how much or how little you have, it will apply its own “estate plan” to all your assets.

It will also decide for you if you become incapacitated, whether or not to put you on feeding tubes or keep you alive artificially, unless you execute the proper documents to let your wishes be known.

A Plan for Every Estate.

You do not have to let the state decide what to do with your assets or make personal, financial or medical decisions for you. All you have to do is speak with a trusts and estates attorney and have an estate plan put in place for you. A Legacy Estate Plan  includes a Lifetime Estate Plan which anticipates your healthcare desires and potential end-of-life needs. By executing certain health care documents and powers of attorney, you can decide who will make financial and medical decisions on your behalf if you become incapacitated and how you want your life sustained.

As experienced estate planning attorneys, we believe it is far better for you to make the decisions about what should happen to you, your property, or your children, instead of leaving it up to the State to decide.

We Can Help.  

No matter how large or small your estate is, you should have a Legacy Estate Plan for the sake of your loved ones and your peace of mind. We are experienced trusts and estates attorneys. We offer free consultations. We have offices in Sedona, Arizona and we serve all of Arizona. Call us at 928-282-1483 or contact us here.  E-mail us or connect with us on Facebook , Twitter or LinkedIn.

Why?

Because there simply are some jobs that are best left to the professionals. And doing your own estate plan is one of them.

Too Easy to Get Wrong. Impossible to Fix.

One of the main reasons why you should not attempt to draft your own estate documents (wills, trusts, etc.) is that it is too easy to make mistakes. And once made, it is impossible if not nearly impossible to fix them.

For example, all wills are required to comply with certain formalities. If you draft your own will and for whatever reason fail to meet every will formality, your will could be held to be invalid either in whole or in part. Meaning that the court could throw the whole thing out, or a certain bequest would not go to the person you wanted it to go to.

Mistakes in drafting can result in expensive and time-consuming probate (if your will is invalid) or expensive and time-consuming will contests (to prove it invalid). Either way, you won’t be around to explain or fix the problem; leaving your loved ones to shoulder the burden.

Your Estate Planning is Too Important to Not Have it Professionally Done.

Another reason why we do not recommend trying to do your own estate planning is because your estate plan is critical to the proper disbursement of your property and to the protection of your loved ones.

When you use online forms or non-attorney sources you cannot get the legal and/or tax advice that you may need to make good choices and informed decisions. As a result, you could make big mistakes that may result in your estate being swallowed up in taxes or unnecessary litigation.

Don’t Take Chances.

We cannot stress enough how important it is for you to have estate planning documents to protect yourself and your loved ones before the inevitable (your death) happens.

But equally important is the fact that you have these documents prepared by experienced trusts and estates counsel. If you have questions or need help putting an estate plan in place or updating the one you have, call us. We offer creative, affordable Will packages through our Legacy Estate Planning process. We have offices in Sedona, Arizona. We serve Verde Valley and all of Arizona. We offer free consultations and we can help you with your estate planning needs. E-mail us here or call 928-282-1483 to set up your free appointment.