When Should I Start Estate Planning and Trusts?
Quick Answer
The best time to start estate planning and trusts is now, while you can still make your own decisions. Accidents, illness, and disability can happen at any age, and a plan protects you while you are alive as well as the people you love. Any adult in Arizona can put a plan in place, and it is much easier to do before a crisis than after one.
Estate Planning and Trusts: Don't Wait Until It's Too Late
Myth #2: I have plenty of time.
Maybe not!
Accidents, illness, and disability can happen at any age.
Estate Planning and Trusts are not just about death. They protect you while you are alive.
A good plan includes:
- Healthcare Power of Attorney: Who makes medical decisions?
- Financial Power of Attorney: Who manages your money?
- Living Trust: Who manages your trust assets if you cannot?
The Bottom Line
Estate planning is for the living.
The best time to plan is while you can make your own decisions.
What Happens in Arizona If You Become Incapacitated Without a Plan
If you can no longer make decisions for yourself and you have no plan in place, your family may have to ask an Arizona court to step in. The court can appoint a guardian to make decisions about your personal care and health, and a conservator to manage your money and property.
Guardianship
A guardian is appointed through a court case. Someone interested in your welfare files a petition, the court looks at the evidence, and the judge decides whether you need a guardian and who should serve. When the court chooses, Arizona law gives priority to certain people, including a person you named in a power of attorney. Without that choice on paper, the court has to decide for you.
Arizona Law: A.R.S. § 14-5303; A.R.S. § 14-5311
Conservatorship
A conservator is appointed to manage the finances of a person who is unable to manage their own affairs. The court may make that appointment after a petition, notice, and a hearing. Here again, a person you nominated in your durable power of attorney is among those the court considers first. A conservatorship can be time consuming and costly for your family, and it is often avoidable with the right documents in place.
Arizona Law: A.R.S. § 14-5401; A.R.S. § 14-5410
What Each Document Does in Arizona
Healthcare Power of Attorney
A health care power of attorney lets an adult name someone they trust to make health care decisions for them if they cannot. Arizona law sets signing requirements, including a date, your signature, and either a notary or a witness. It can also cover funeral and disposition arrangements.
Arizona Law: A.R.S. § 36-3221
Financial Power of Attorney
A financial power of attorney names an agent to handle your money and property. In Arizona, it is called a durable power of attorney when it is written to stay in effect if you become disabled or incapacitated. It must be signed and notarized, and it needs a witness who is not your agent or your agent's spouse or children.
Arizona Law: A.R.S. § 14-5501; A.R.S. § 14-5502
Living Trust
A revocable living trust holds your property for the people you choose. You name a trustee to manage it, and a successor trustee who steps in if you cannot serve. That can let someone you picked manage the trust property without a court case. A trust does not replace your powers of attorney, because it generally manages only the property that has been placed in it.
Arizona Law: A.R.S. § 14-10401; A.R.S. § 14-10602; A.R.S. § 14-10704
Frequently Asked Questions About Estate Planning and Trusts in Arizona
At what age should I start estate planning?
As soon as you are an adult with people you care about or property you want to protect. Many people start when they turn 18, get married, have a child, buy a home, or start a business. Accidents and illness do not wait for a certain age, so the right time is earlier than most people think.
Is a power of attorney still valid if I become incapacitated?
It can be, if it is written the right way. In Arizona, a durable power of attorney includes language showing you intend it to remain in effect if you become disabled or incapacitated. A power of attorney that does not have that language may not work when you need it most, so it is worth having it reviewed.
Arizona Law: A.R.S. § 14-5501; A.R.S. § 14-5502
Does a living trust replace a power of attorney?
No. They do different jobs. A living trust generally manages the property that has been placed in the trust, and your successor trustee can step in if you cannot serve. A financial power of attorney can handle other financial matters, and a health care power of attorney covers medical decisions, which a trust does not do.
Arizona Law: A.R.S. § 36-3221; A.R.S. § 14-5501; A.R.S. § 14-10704
What if I wait too long?
If you lose the ability to understand and make your own decisions, you may no longer be able to sign the documents you need. In that case, your family may have to ask an Arizona court to appoint a guardian or a conservator. That can mean a court case, a hearing, and a decision by someone other than you. Planning while you are able lets you choose who steps in.
Arizona Law: A.R.S. § 14-5303; A.R.S. § 14-5401
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.