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.

Choosing to Leave Your Home Through Your Will.

Your Last Will and Testament (“Will”) determines how your property is divided when you die. You can (and most people do) leave your real property to your heirs (your spouse; children) through your will. This is a completely proper and valid way to pass on your property.

However, if you leave the family home to your heirs through your will, it must pass through probate. Not the time-consuming and expensive probate process which occurs when you have no will, but probate nevertheless. There is nothing wrong with this.

But, there is another option.

Beneficiary Deeds.

Arizona law allows you to pass on your real property by way of a beneficiary deed. (A.R.S. § 33-405. ) This means that you can sign and record a deed during your lifetime, that transfers your real property to one or more people upon your death.

The advantages to using a beneficiary deed as opposed to your will, are that you can:

• name one or more beneficiaries
• one or more owners can leave the property to multiple beneficiaries
• the deed transfers the property only upon your death, and
• you can revoke it at any time.

In contrast to leaving your property through your will, with a beneficiary deed, your heirs will receive the property immediately upon your death because the deed does not have to go through probate.

Don’t Know What is Best for Your Estate?

If you would like to learn more about beneficiary deeds or anything related to trusts and estates, call us. We Are Estate Planning Attorneys in Arizona. We have offices in Sedona and we serve Verde Valley as well as all of Arizona. We offer free consultations and we can help you with your estate planning needs. Contact us to set up your free appointment.

Usually when we mention probate, we are talking about how to avoid it.

Today we thought we would give you a peek into the (dreaded) probate process.

What Is Probate?

Probate is the court-supervised process of distributing your assets to your heirs when you die. If you die leaving property (especially real estate) in your name, the only way to transfer ownership of it to your heirs is for a court to order the transfer through the probate process.

If you do not have a will or a trust when you die, then your entire estate will have to go through a formal court-supervised probate process to get distributed. In Arizona, if you have a will when you die, then it is possible to do an informal probate which simplifies the probate process.

What Does the Court Do in Probate?

The probate process usually begins when the deceased’s representative (in Arizona, usually called the “personal representative” elsewhere often called the “executor”) files a petition with the court to have the deceased’s estate administered. The process (which can take a year or longer to complete) ends when the court formally “closes” the estate.

There are a number of steps the court takes to probate an estate. In most states the court will take at least the following steps:

• Proving the validity of the will, if there is one.
• Choosing a personal representative or executor or representative for the estate;
• Totaling up all the assets;
• Paying all estate debts, estate taxes and costs of administration;
• Identifying all heirs or other family members;
• Distributing assets (if any) remaining after administration of the estate to the heirs under the will (if there is one) or under the intestacy statutes.

There may be other things to be done or that the probate court will do, depending on the state and the factual situation of the estate being probated. However, the list above should give you a fair idea of what goes on in the probate court.

Even the most simple and uncontested probate proceedings can take many months to a year to complete. If there are disputes or claims, it can take much longer.

Court procedures involve court costs (filings) and often involve attorneys, and all this leads to legal fees and costs. Which is why we so often talk about how and why to avoid probate.

Talk to an Estate Planning Attorney!

If you have questions about probate or how you can avoid probate, call us. We offer creative solutions to avoiding formal probate even with a simple, affordable will package 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 or connect with us on Facebook , Twitter or LinkedIn.

No doubt about it; technology has revolutionized our lives and our society. It has even changed what is considered to be part of a person’s “estate” when they die.

#DigitalEstatePlanning.

“Back in the day” all you had to worry about was your present life, the afterlife and passing on your tangible assets (real property, stocks & bonds etc.) to those you love.

In today’s world, you have to worry about your present life, the afterlife and your digital life!

Which means that your estate planning has to include your tangible and intangible digital assets, like:

• smartphones
• computers (laptops, tablets)
• flash drives
• e-book readers
• social media accounts (Facebook, Twitter, LinkedIn etc.)
• webpages
• domain names, and
• blogs.

Unfortunately, many internet service providers do not allow accounts to be transferred to heirs —even if your Will says to.

Plus, certain privacy protections created by federal law prohibit online service providers from federal privacy laws disclosing the contents of certain electronic communications and files.

As a result, individuals must plan ahead to allow their heirs access to (or disclosure of) their online accounts and digital assets when they die or if they should become incapacitated.

What You Can Do to Prepare for Your Digital End.

There are some things that you can do to ensure that your digital assets get included in your estate plan and passed on to your loved ones.

1. Select a Legacy Contact.

Some social networks like Facebook, give you the option of choosing someone to have limited access to your account after you die in order to manage it or delete it altogether.

2. List All Your E-mail Accounts and Passwords.

Another thing you can do is to list all of your e-mail accounts and passwords and keep it with your Will, so that your lawyer or personal representative (or “executor”) will have access to them if needed.

When it comes to access to social media profiles or online financial accounts, making sure that the person who will be handling your estate after your passing has access to these accounts and passwords is especially important.

3. Consult Experienced Trusts and Estates Counsel.

Finally, one of the best things you can do to prepare your digital estate is to consult with experienced and knowledgeable trusts and estates counsel.

Every state has its own laws regarding the treatment of digital assets and both the law and technology keeps evolving, making it difficult for laymen to keep up with all the changes.

Digital asset planning is important. It addresses the financial and sentimental considerations of your digital assets.

We Can Answer All Your Questions.

If you want to know what digital assets you should plan for, call us. We offer free consultations, and we serve all of Arizona. Our offices are located in Sedona, Arizona and our practice focuses on trusts and estates law. We can answer all your questions and help you. Call us at 928-282-1483 or send us an e-mail.

Since we so often talk about death here on our trusts and estates blog, we thought that today we would spice things up a bit and talk about taxes—estate taxes as a matter of fact.

The Joy of Giving Gifts While Reducing Estate Taxes.

Everyone loves to receive a gift. Sometimes, the person giving the gift is just as happy as the person who receives it.

When it comes to estate planning, gift-giving can benefit you (your estate) as much as it does the person receiving your gift.

How?

Well, if you have a sizeable estate, one of the things you will need to think about is how much your estate will have to pay in taxes (“estate tax”) when you die. Because estate taxes for large estates can be pretty hefty, you may want to consider ways to reduce your estate taxes now while you are still alive.

One of the best ways to do this is by making gifts.

There are many good reasons for making a gift, including how good it makes you feel, but one of the best reasons for making a gift is because it can actually cost you less to make a gift while you are alive, than it does to wait until you die and have your estate pay estate taxes on the gift.

How can that be?

It is like this: when you make a gift during your lifetime, you pay a “gift tax.” When you make a gift through your estate plan, after your death your estate will pay an “estate tax” on that gift. While the fact is that you will pay taxes either way, making a gift during your lifetime has the added benefit of taking that item (i.e., the gift of money, stock, or other asset) out of your overall taxable estate. Which means that you not only give someone a gift, but you reduce your estate taxes overall.

Annual Gifts.

If you are in a position to need to reduce your estate taxes, gift-giving is a good way to do it. You can make tax-free gifts of up to $13,000.00 per person each year to as many people as you want (and up to $26,000 per person if you and your spouse give together).

Nor do you have to give cash as a gift. You can gift appreciating assets and doing so takes any future appreciation of that asset(s) out of your estate.

There is a lot more to know about gift-giving and how it can help you further your estate plan by reducing your estate taxes. To find out more about estate planning options that will work for you, consult with capable and experienced trusts and estates counsel.

Talk To One of Our Trusts and Estates Attorneys.

To learn more about how gift-giving can benefit your estate, or to get started making your estate plan, call us at 928-282-1483.  We are experienced trusts and estates attorneys. We offer free consultations. Our offices are located in beautiful Sedona, Arizona but we serve all of Arizona. We can help you provide and plan for your loved ones. Call 928-282-1483 today or contact us here.

When you are browsing through the art galleries in Uptown Sedona, do you ever stop to wonder, if you buy that stunning original artwork, knowing your husband is going to absolutely kill you when he finds out how much it cost, what would happen to it if you die without a will?

It is a question worth thinking about.

The Laws of Intestacy.

If you do not have a will when you die, that is called dying “intestate.”

If you die intestate, any assets that you own alone, in your own name, will pass on to your relatives according to Arizona’s intestate succession laws.

Other assets that you either co-own with your spouse, or are transferrable on death, or are in a trust, or have a beneficiary assigned to them (like an IRA, or 401K, or insurance) are not affected by the intestate laws.

But who gets what of your solely-owned property when you die intestate can get pretty complicated. That is why it is best to consult with experienced trusts and estates attorneys and have a Legacy Estate Plan designed for you, or, at the very least, a will.

Very briefly, how your property is distributed under the intestacy laws depends on whether or not you are married (and/or were married before), have living children, parents, or other close relatives when you die.

Here is something to think about: if you do not already have a will and you have descendants (children, grandchildren, great grandchildren) from a previous marriage, your half of any property that you hold with your current spouse as “community property [property acquired during marriage] with right of survivorship,” will  not go to your children, grandchildren or great grandchildren, but will automatically go to your current spouse.

Also, if you were married before and have stepchildren, even if you love them dearly and want them to get your half of your community property (without survivorship rights) or your separate property, unless you legally adopted them, they cannot inherit from you without a last will and testament that allows for such an inheritance.

These are just two points to think about with regard to intestate succession. There is a lot more to know about intestacy and many more reasons why you do not want to have your estate distributed through the intestate succession laws.

Do you have  Questions? Speak with a Trusts & Estates Attorney!

If you want to make sure your treasured property goes to the ones you love, contact us.

We are experienced trusts and estates attorneys. We offer free consultations and we serve all of Arizona. We can help you provide and plan for your loved ones. Call us at 928-282-1483 or you can reach us by email here.

The New Year is the perfect time to resolve to change your life for the better. That is why most of us make New Year’s resolutions to get to the gym and get in shape. But as we all know, buying the new outfit is the best part of that resolution. Our resolve to get in shape rarely lasts long. A few weeks of jumping around in tight spandex pants and living on lettuce and air sandwiches and most of us throw in the towel. That is why this year, we have got a New Year’s resolution for you that we Trust you Will keep. This is one New Year’s resolution that will last you a lifetime—and beyond.

Make An Estate Plan

Our resolution for you this year: make a Legacy Estate Plan.

In a Legacy Estate Plan developed by Esser, Bradley and Khalsa, you direct who gets what from your estate. As you know, everyone has an estate—things they own, like a car a home, bank accounts, jewelry, furniture, life insurance, etc. It is important that you make sure that when you die, those you love (e.g. your spouse, your children, etc.) get the money and property  you want them to have so that they are taken care of. A Legacy Estate Plan is the way to do that. And, if needed, a Legacy Estate Plan can include your more immediate goals — like providing for the current and future needs of any disabled family members you may be taking care of now. Your Legacy Estate Plan can include a Special Needs Trust designed specifically for that person. That is why, if you do not already have an estate plan, 2018 is the perfect year to get one in place.

A critical component of a Legacy Estate Plan is a Lifetime Estate Plan. A Lifetime Estate Plan anticipates your healthcare desires and potential end-of-life needs. It includes the preparation and execution of a certain Powers of Attorney and directives that allow you to nominate someone to make financial and medical decisions on your behalf if you become incapacitated. Moreover, those documents allow you to specify how you wish to be taken care of on the off-chance that you become incapacitated.

Thinking about, planning for, and putting into place a Legacy Estate Plan that will provide for your loved ones and make sure your wishes are carried out when you die is every bit as important—if not more important — than getting into shape, trying to earn more money this year, making time for meditation, or any of the other hundreds of New Year’s resolutions we all make. So this year, make the one New Year’s Resolution that is easily doable and will benefit you and your loved ones now and in the years to come: make a Legacy Estate Plan.

We Make Taking Care of Your Estate and Your Family Easy

We are experienced trusts and estates attorneys. We offer free consultations, we serve all of Arizona, and we can help you provide and plan for your loved ones. Call us at 928-282-1483 or contact us here.

Many families have loved ones who have special needs: Autism, Downs Syndrome, Bipolar disorder, Schizophrenia or some other type of debilitating physical, mental, or developmental disability. As much as we love our family members, sometimes it can be emotionally very challenging to care for the ones in these particular circumstances. For some families it makes more sense to put money into a trust and have a third-party private fiduciary appointed as a trustee to manage the trust and finances for that particular family member.

For others, regardless of the emotional circumstances, there is a legal basis for the creation of what is called a Special Needs Trust (“SNTs”). For instance, when someone is receiving social security payments, food stamps, and other government funding due to a disability, it is important for family contributions to be placed in a trust so as not to invalidate those benefits. If a family member wishes to contribute to that individual’s daily life expenses, then they cannot just transfer money to their account because that money would be considered income.

Once those resources are classified as income, their benefits would be invalidated. The SNT was designed to isolate the family contributions from being considered as “income” and allow the benefits to continue being received without disruption.

There are many specific eccentricities with regard to how a SNT functions and what expenditures are validated that again will not affect the received benefits. Only a well-versed attorney understands these eccentricities, so it is crucial to work with an experienced attorney in the drafting and administration of a SNT.

Drafting a Special Needs Trusts

A carefully drafted SNT can be a flexible and effective way of providing for the immediate and future needs of disabled persons. The SNT can be customized to address the individual needs of the disabled person.

Like any other trust, an SNT is a trust (or fund made up of real estate, money or other tangible items) that is set up for the benefit of another (the “beneficiary”). The SNT is managed by a “trustee” for the benefit of the beneficiary; in this case, the special needs person. As indicated above, the trustee is typically a private fiduciary, but it can also be a friend or family member, if you so choose. The trust lasts as long as it is needed. Generally, that is until the beneficiary’s death or until the funds are expunged.

Many times people will simply leave money to their special needs family member in their will. However, this isn’t always the best approach as it can cause the disabled person to become ineligible for certain government assistance programs, as indicated above, such as Social Security Income, subsidized housing, or Medicaid. That is why it is important to speak to experienced trusts and estates counsel to ensure that your SNT is well-drafted and your loved one will not lose any critical benefits that he or she may be receiving. We have offices in Sedona, Arizona and we offer free consultations.

There are many things to consider when deciding whether or not to set up a Special Needs Trust for your loved one.

Call Us!

We are experienced trusts and estates attorneys. We offer free consultations, we serve all of Arizona, and we can help you provide and plan for your loved ones. Call us at 928-282-1483 or contact us here.