Do I Need Estate Planning and Trusts If I'm Not Rich?
Quick Answer
Yes. Every adult in Arizona needs an estate plan, no matter how much money you have. Without a plan, Arizona law decides who receives your property and who is appointed guardian of your minor children, and a court may need to step in if you become unable to manage your own affairs. A plan, including a trust when it fits your situation, keeps those choices in your hands.
Estate Planning and Trusts: Not Just for Rich People
Myth #1: Only wealthy people need estate planning.
Wrong!
Everyone needs an estate plan. It is not about how much money you have. It is about protecting yourself and the people you love.
Estate Planning and Trusts help you:
- Protect your children.
- Provide for your spouse.
- Manage your assets during disability.
- Decide who receives your inheritance.
Without a plan, Arizona law may make those decisions for you.
The Bottom Line
You do not have to be wealthy to need an estate plan.
You just need people you care about.
What Arizona Law Decides Without a Plan
If you do not make your own plan, Arizona law fills in the blanks. Here are three of the biggest decisions it can make for you.
Who receives your property
Property that is not left through a will, a trust, or a beneficiary designation passes to your heirs under Arizona's intestate succession rules. Those rules follow a set order, and they may not match what you would have chosen.
Arizona Law: A.R.S. § 14-2101 et seq.
Who raises your minor children
A parent can name a guardian for a minor child in a will. If no guardian is named, a court decides who will be appointed, based on what is in the best interest of the child.
Arizona Law: A.R.S. § 14-5202; A.R.S. § 14-5204; A.R.S. Title 14, Chapter 5
Who manages your finances if you become incapacitated
If you can no longer manage your money and no plan is in place, a family member may have to ask a court to appoint a conservator. That means a court case, a hearing, and someone the court chooses, who may not be the person you would have picked. Planning ahead lets you choose who steps in.
Arizona Law: A.R.S. § 14-5401
Where Trusts Fit
A trust sounds complicated, but the idea is simple. A trust is a written legal arrangement that holds your property for the people you choose. You name a trustee to manage it and beneficiaries to receive it.
A revocable living trust is the kind many Arizona families use. You can change it or cancel it while you are living, and you can usually serve as your own trustee. You also name a successor trustee to take over if you die or become unable to manage your affairs.
Property that is properly placed in your trust generally does not have to go through probate, the court process for settling an estate. A trust can also give your successor trustee clear authority to manage your assets if you become disabled.
Trusts are not just for the wealthy. If you own a home, have children, or want your family to avoid court, a trust may be worth a look. It is not right for everyone, and the right plan depends on your family and what you own.
Frequently Asked Questions About Estate Planning and Trusts in Arizona
Do I need a will if I don't own a house?
Yes. A will lets you decide who receives your belongings, bank accounts, vehicle, and other property. It is also where a parent can name a guardian for minor children and choose a Personal Representative, the Arizona term for an Executor. Some accounts pass by beneficiary designation, but a will covers what is left.
Arizona Law: A.R.S. § 14-5202
Is a trust only for wealthy families?
No. A trust is a planning tool, not a status symbol. Families with a home, young children, a blended family, or a loved one with special needs often use trusts. Whether a trust makes sense for you depends on your goals and what you own.
What happens if I die without a will in Arizona?
Your property that is not otherwise left through a trust or beneficiary designation passes to your heirs under Arizona's intestate succession law. If you have minor children, a court decides who will be their guardian. Neither outcome is based on your wishes.
Arizona Law: A.R.S. § 14-2101 et seq.; A.R.S. § 14-5204
When should I start estate planning?
As soon as you have people you care about or property you want to protect. Marriage, a new child, buying a home, a divorce, or a change in your health are all good times to start. Once you have a plan, review it after major life events.
Questions About Estate Planning and Trusts in Arizona?
If you have questions about estate planning, trusts, or protecting the people you love, the Law Office of Ilene L. McCauley, Ltd. can help you understand your options under Arizona law.
Related Arizona Estate Planning Information
For additional information about Arizona probate and estate planning, you may also want to read:
About Ilene L. McCauley
Ilene L. McCauley, Esq. is a Scottsdale, Arizona estate planning, probate, and tax attorney who has practiced law in Arizona since 1982. She helps individuals and families throughout Arizona address estate planning, incapacity, probate, trust administration, and related family planning concerns. Ilene has been a Certified Specialist in Taxation recognized by the Arizona Board of Legal Specialization since 1983.
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. The information provided in this article is general and educational in nature and should not be construed as legal, tax or medical advice. Reading this article or using this website does not create an attorney and client relationship. Federal and state laws and regulations are complex and subject to change. Consult qualified Arizona legal and medical professionals regarding your individual circumstances.