12-Step Estate Planning ChecklistPlan Today. Protect Tomorrow.
Arizona Estate Planning Guide
12-Step Estate Planning Checklist
Plan Today. Protect Tomorrow.
What Should an Arizona Estate Plan Include?
An Arizona estate plan may include financial and healthcare powers of attorney, a HIPAA authorization, a Last Will and Testament, a living trust, beneficiary designations, guardianship nominations, life insurance, long term care planning, tax planning, and protections for loved ones. The appropriate documents and strategies depend upon your family, finances, health, property, business interests, and goals.
What This Arizona Estate Planning Checklist Covers
This checklist addresses:
- Financial decision making during incapacity
- Healthcare and medical information
- Guardianship nominations
- Wills and trusts
- Beneficiary designations
- Life insurance and long term care
- Protection for children and other beneficiaries
- Tax planning
- Business continuity
- Reviewing and maintaining an estate plan
In my practice, I tell clients that estate planning is about one thing:
Estate planning is not just about what happens when you die. It also protects you while you are alive. That is why these decisions should be made before a crisis happens.
Here is my 12-Step Estate Planning Checklist.
Step 1: Financial Power of Attorney
A Financial Power of Attorney allows someone you trust to manage your finances if you cannot.
For business owners, it can also help ensure that the business continues to operate if you become incapacitated.
Step 2: Healthcare Power of Attorney
A Healthcare Power of Attorney allows someone you trust to make medical decisions for you when you cannot make them yourself.
Choose that person carefully and discuss your wishes now.
Step 3: Guardianship for Your Children
If you have minor children or a child with special needs, who will care for them if something happens to you?
Your estate plan allows you to express your wishes and provide for their financial future.
Step 4: HIPAA Authorization
A HIPAA Authorization gives the people you choose access to important medical information.
Your healthcare documents should work together so your loved ones can help you when you need them most.
Step 5: Last Will and Testament
Without a Will, state law determines who receives property passing through your estate.
A Will allows you to name beneficiaries, nominate guardians for minor children, and choose who will handle your estate.
Step 6: Trust
A Living Trust can help manage your assets during incapacity and after death.
Depending upon your circumstances, it may also help avoid probate, protect beneficiaries, and assist with tax planning.
For business owners, a Trust can be coordinated with a business succession plan.
Step 7: Beneficiary Designations
Retirement accounts, life insurance, and certain financial accounts can pass directly to your named beneficiaries.
Review these designations regularly, especially after a marriage, divorce, birth, or death.
Step 8: Life Insurance
Life insurance provides cash when your family may need it most.
It can replace income, pay debts, support children, and provide financial security for the people you love.
Step 9: Long-Term Care Planning
Long-term care can be extremely expensive.
Planning ahead may help provide resources for care at home, assisted living, memory care, or nursing care.
Step 10: Protect Your Loved Ones
Estate planning is not just about leaving money. It is about protecting the people who receive it.
A properly designed plan can provide safeguards for children, vulnerable beneficiaries, and other loved ones.
Step 11: Minimize Taxes
Estate planning should consider the taxes that may affect you, your assets, and your beneficiaries.
The goal is simple:
Pay what the law requires—but don't pay more than necessary.
Step 12: Stay in Control
Life happens. Illness, accidents, disability, and death often come when we least expect them.
That is why I believe estate planning is a process—not simply a collection of documents.
In my practice, my job is to guide, educate, and help families solve problems before they happen.
Make these important decisions while they are still yours to make.
Plan today. Protect the people you love. Stay in control of tomorrow.
How to Use This Arizona Estate Planning Checklist
This checklist is a starting point for reviewing the decisions and documents that may be part of an estate plan. Before meeting with an Arizona estate planning attorney, consider gathering:
- A list of your assets and debts
- Information about real estate and account ownership
- Current beneficiary designations
- Existing Wills, trusts, and powers of attorney
- Business ownership documents
- Life insurance information
- Names of potential agents, trustees, guardians, and personal representatives
- Information about beneficiaries who may need additional protection
- Questions about incapacity, long term care, probate, or taxes
Estate planning documents should be coordinated with account ownership, beneficiary designations, real estate, business interests, and the way assets are intended to pass.
Arizona Estate Planning Considerations
Does Nominating a Guardian Guarantee That Person Will Be Appointed?
No. Arizona law allows a parent to nominate a guardian for a minor child through a Will. The appropriate court retains authority over the appointment and considers the applicable circumstances.
Planning for a child with disabilities may require additional strategies. Depending upon the child’s age, needs, benefits, and circumstances, planning may include a special needs trust, guardianship, conservatorship, or other arrangements.
Which Healthcare Documents May Be Part of an Arizona Estate Plan?
Arizona healthcare planning may involve a healthcare power of attorney, mental healthcare power of attorney, living will, HIPAA authorization, and other advance directives. Each document serves a different purpose and should be coordinated with the rest of the estate plan.
Does Signing a Living Trust Complete the Planning Process?
Not necessarily. A living trust generally controls assets that have been properly transferred into or otherwise coordinated with the trust. Real estate, financial accounts, business interests, beneficiary designations, and other property should be reviewed to determine how each asset fits into the overall plan.
Should Beneficiary Designations Be Coordinated With a Will or Trust?
Yes. Retirement accounts, life insurance, and certain financial accounts may pass according to their beneficiary designations rather than instructions contained in a Will. Beneficiary designations should be reviewed as part of the complete estate planning process.
Does Every Arizona Family Need the Same Estate Plan?
No. Estate planning is not a standard collection of documents. The appropriate plan depends upon family relationships, assets, debts, business ownership, health, beneficiary needs, tax considerations, and long term goals.
Frequently Asked Questions About Estate Planning in Arizona
Does Every Arizona Adult Need an Estate Plan?
Every adult should consider who could make financial and healthcare decisions during incapacity and what should happen to property after death. The appropriate documents will depend upon the person’s circumstances.
Can a Will Avoid Probate in Arizona?
A Will provides instructions for property passing through an estate, but it does not by itself avoid probate. Assets held in a properly funded trust or transferred through certain beneficiary arrangements may pass outside probate.
Does a Living Trust Avoid Probate in Arizona?
A living trust may help avoid probate for assets properly transferred into or coordinated with the trust. Assets left outside the trust may still require probate unless another valid transfer method applies.
What Happens Without a Financial Power of Attorney?
If someone becomes unable to manage financial matters without an effective financial power of attorney or another authorized decision maker, a court proceeding may be required to appoint a conservator. The result depends upon the person’s documents, assets, capacity, and circumstances.
How Often Should an Estate Plan Be Reviewed?
An estate plan should be reviewed after a marriage, divorce, birth, death, move, major health change, significant financial change, business transition, or change involving a beneficiary or decision maker. Periodic reviews can also help ensure that documents, asset ownership, and beneficiary designations continue to work together.
Can an Estate Plan Protect a Beneficiary With Disabilities?
A carefully designed plan may provide financial support while considering eligibility for government benefits. Special needs planning should be tailored to the beneficiary, the available assets, the applicable programs, and current law.
When Should Someone Begin Estate Planning?
Estate planning should be completed while a person can make informed decisions and legally execute the appropriate documents. Waiting for an illness, accident, or family crisis can limit the available planning options.
Related Arizona Estate Planning Resources
Speak With an Arizona Estate Planning Attorney
Estate planning documents are most useful when they accurately reflect your wishes, family, property, business interests, and current law.
Ilene L. McCauley, Ltd. helps individuals, families, and business owners throughout Arizona create and review estate plans designed around their specific circumstances.
Request an Estate Planning Consultation
or call 480 296 2036.
Arizona Estate Planning Sources
Arizona Revised Statutes Section 14 5501: Durable Powers of Attorney
Arizona Revised Statutes Section 36 3221: Healthcare Powers of Attorney
Arizona Revised Statutes Section 14 5202: Appointment of a Guardian for a Minor
Arizona Revised Statutes Section 14 2101: Intestate Estates
Arizona Revised Statutes Section 14 10602: Revocable Trusts
Arizona Revised Statutes Section 14 2804: Beneficiary Designations and Termination of Marriage
Disclaimer
Ilene L. McCauley is licensed to practice law in the State of Arizona. Ilene L. McCauley, Ltd. provides legal services for clients in the State of Arizona. This article is general and educational in nature and should not be construed as legal or tax advice. Reading this article or using this website does not create an attorney client relationship. Federal and state laws and regulations are complex and subject to change. Individuals and families should consult qualified Arizona legal and tax professionals regarding their own circumstances.