Question 1

How do I know if I need estate planning?

Accepted Answer

If you answer yes to any of these, you need estate planning: Do you own any assets (home, car, bank accounts)? Do you have minor children? Do you have strong opinions about your medical care? Do you want to avoid burdening your family with decisions? If you're an adult, the answer is almost certainly yes—estate planning isn't just for the wealthy.

Question 2

What's the difference between a will and a trust?

Accepted Answer

A will is a legal document that specifies how you want your assets distributed after death—it must go through probate court, which is public and can take 6-12 months. A trust is a legal arrangement that holds your assets during your lifetime and transfers them directly to beneficiaries after death—avoiding probate, maintaining privacy, and providing more control. Most families benefit from having both.

Question 3

How much does estate planning cost?

Accepted Answer

Legacy Law Group offers transparent, flat-fee pricing. A basic will package starts at $1,500, while comprehensive trust-based plans typically range from $3,500-$7,500 depending on complexity. Complex estates involving business succession or specialized trusts may be higher. We'll provide a detailed quote during your free consultation—no surprises. This is a fraction of what families spend on probate and estate administration without proper planning.

Question 4

How long does the estate planning process take?

Accepted Answer

Most estate plans can be completed within 2-4 weeks. This includes our initial consultation, document drafting, your review period, and the final signing ceremony. More complex estates involving business succession or specialized trusts may take 4-8 weeks. The most common delay is waiting for clients to gather necessary information or make decisions.

Question 5

What should I bring to my estate planning consultation?

Accepted Answer

To make the most of your consultation, bring: a list of your assets (approximate values), information about existing beneficiary designations on retirement accounts and life insurance, any existing estate planning documents, a list of potential trustees/guardians/agents, and questions you want answered. We'll provide a detailed checklist before your appointment.

Question 6

When should I update my estate plan?

Accepted Answer

Review your estate plan every 3-5 years or whenever you experience a major life event: marriage, divorce, birth of a child or grandchild, significant change in assets, move to a new state, death of a beneficiary or fiduciary, major change in relationships, or significant changes in tax laws. Even without changes, confirming your plan still reflects your wishes is valuable.

Question 7

What happens if I die without an estate plan in Arizona?

Accepted Answer

Arizona's intestacy laws will determine how your assets are distributed, which may not align with your wishes. Your estate will go through probate, potentially causing delays and additional costs for your family. The court may appoint a guardian for minor children rather than someone you'd choose. Your family's financial information becomes public record, and disputes are more likely without clear guidance.

Question 8

Can I create my own estate plan using online forms?

Accepted Answer

While DIY options exist, they carry significant risks. Online forms don't provide customized advice, may not comply with Arizona law, and often result in errors that render documents ineffective. The most common problem with DIY trusts is improper "funding" (transferring assets to the trust). The cost savings are illusory if documents don't work when needed—often the estate goes through probate anyway.

Question 9

Do my spouse and I need separate estate plans?

Accepted Answer

Typically, married couples create coordinated estate plans together, though you'll each sign your own documents. Your plans should work together to maximize tax benefits, provide for each other, and ensure your combined wishes are carried out. Both spouses should attend estate planning meetings to ensure alignment.

Question 10

What's the most important estate planning document?

Accepted Answer

There's no single "most important" document—they work together. A will names guardians for children, a trust avoids probate, powers of attorney protect you during incapacity, and healthcare directives ensure your medical wishes are followed. If forced to choose one, many attorneys would say a healthcare directive—because it's needed during your lifetime when you're most vulnerable.

Question 11

What's the difference between a revocable and irrevocable trust?

Accepted Answer

A revocable trust can be changed or cancelled during your lifetime—you maintain complete control. It provides probate avoidance and privacy but offers no asset protection or tax benefits during your life. An irrevocable trust cannot be easily changed once created, but offers additional benefits like asset protection from creditors and estate tax reduction. Most people start with a revocable trust.

Question 12

Do I need a trust if I have a will?

Accepted Answer

While a will is essential, most Arizona families with real estate benefit from a trust. A will goes through probate (public, takes 6-12 months), while a trust transfers assets privately and immediately. A trust also provides management during your incapacity—your will only works after death. Even with a trust, you need a "pour-over will" as a safety net.

Question 13

How do I choose a trustee?

Accepted Answer

Your trustee should be someone who is trustworthy, organized, and capable of managing financial matters. Many people choose a spouse, adult child, or close friend. Consider their availability, financial acumen, and relationship with beneficiaries. For complex estates or when no suitable individual exists, a professional trustee (bank or trust company) may be appropriate, though they charge fees.

Question 14

What makes a will valid in Arizona?

Accepted Answer

To be valid in Arizona, a will must be: signed by someone at least 18 years old and of sound mind, signed in the presence of two witnesses (who also sign), and ideally notarized for "self-proving" status. Arizona also recognizes holographic (handwritten) wills without witnesses, but they're more easily contested. We always recommend formal typed wills.

Question 15

Can I change my will after it's signed?

Accepted Answer

Yes, wills can be changed anytime before death, as long as you have mental capacity. Minor changes can be made through a "codicil" (formal amendment). For significant changes, it's usually better to create an entirely new will and revoke the old one. Keep only the current version to avoid confusion.

Question 16

Can I disinherit a family member?

Accepted Answer

In Arizona, you can disinherit any family member except your spouse, who has certain rights to your estate unless waived in a prenuptial or postnuptial agreement. If you want to disinherit someone, it should be clearly stated in your estate plan (not just omitted) to avoid challenges. We can help structure this properly.

Question 17

What is a pour-over will?

Accepted Answer

A pour-over will works alongside a trust to "catch" any assets that weren't transferred to your trust during your lifetime. It directs that these assets "pour over" into your trust upon death. While these assets may go through probate, they'll then be distributed according to your trust terms. Every trust-based plan should include one.

Question 18

What is a special needs trust?

Accepted Answer

A special needs trust (also called supplemental needs trust) holds assets for a person with disabilities without disqualifying them from government benefits like SSI and Medicaid. It provides for quality of life needs—education, recreation, personal care—not covered by government programs. These trusts require specific language and an experienced trustee.

Question 19

Does a trust protect my assets from creditors?

Accepted Answer

A revocable living trust provides no creditor protection during your lifetime—since you control the assets, creditors can still reach them. However, after your death, assets in trust may be protected for your beneficiaries depending on how the trust is structured. Irrevocable trusts can provide creditor protection, but you give up control.

Question 20

What happens to my trust when I die?

Accepted Answer

Upon your death, your trust becomes irrevocable. Your successor trustee takes over, pays any debts and taxes, and distributes assets according to your instructions—all without court involvement. This can happen within weeks rather than the months required for probate. The trust terms control whether beneficiaries receive assets outright or in ongoing trusts.

Question 21

What is probate?

Accepted Answer

Probate is the court-supervised process of validating a will, paying debts, and distributing assets after death. In Arizona, it typically takes 6-12 months and involves filing with the court, notifying creditors, potentially appraising assets, and obtaining court approval for distributions. Probate records are public. You can avoid probate through trusts, beneficiary designations, and joint ownership.

Question 22

How long does probate take in Arizona?

Accepted Answer

Arizona probate typically takes 6-12 months minimum. "Informal" probate (simpler process) is faster than "formal" probate (required for contested estates or unclear situations). Factors that extend probate include: disputes among heirs, complex assets, creditor claims, real estate in multiple states, and missing beneficiaries. A properly funded trust avoids probate entirely.

Question 23

Can probate be avoided?

Accepted Answer

Yes! Assets can pass outside probate through: revocable living trusts, beneficiary designations (retirement accounts, life insurance), joint ownership with right of survivorship, payable-on-death (POD) or transfer-on-death (TOD) designations, and Arizona beneficiary deeds for real estate. Proper estate planning coordinates these methods to avoid probate entirely.

Question 24

What does an executor do?

Accepted Answer

An executor (called "personal representative" in Arizona) administers your estate. Duties include: filing the will with the court, notifying beneficiaries and creditors, inventory assets and get appraisals, pay debts and taxes, file final tax returns, and distribute assets to beneficiaries. This can be time-consuming—choose someone organized and willing to serve.

Question 25

How much does probate cost in Arizona?

Accepted Answer

Probate costs typically include: attorney fees (2-4% of estate value, negotiable), personal representative fees (up to 5% of estate value), court filing fees ($300-$500), appraisals, accountings, and publication costs. For a $500,000 estate, total probate costs could exceed $20,000-$35,000. A trust avoids most of these costs.

Question 26

Can probate be done without an attorney?

Accepted Answer

Arizona allows personal representatives to handle informal probate without an attorney, but it's generally not recommended. Probate involves deadlines, legal filings, creditor notifications, and tax considerations. Mistakes can result in personal liability. For simple estates, the cost of an attorney is often worth the protection and peace of mind.

Question 27

What is a small estate affidavit?

Accepted Answer

Arizona allows simplified procedures for small estates. If personal property is worth less than $75,000 and real estate less than $100,000, heirs may be able to collect assets using an affidavit rather than going through full probate. There are waiting periods and specific requirements. This can be useful for simple estates.

Question 28

What if the estate has more debts than assets?

Accepted Answer

If an estate is "insolvent" (debts exceed assets), creditors are paid in a specific priority order set by Arizona law until funds run out—not all creditors may be paid in full. Beneficiaries receive nothing from an insolvent estate. However, beneficiaries are not personally responsible for the deceased's debts unless they co-signed.

Question 29

What is a healthcare power of attorney?

Accepted Answer

A healthcare power of attorney (also called healthcare proxy) designates someone to make medical decisions on your behalf when you cannot communicate. This includes decisions about treatments, surgeries, medications, facilities, and end-of-life care. Choose someone who knows your values and can handle difficult decisions under pressure.

Question 30

What's the difference between a living will and a regular will?

Accepted Answer

They're completely different documents. A regular will controls asset distribution after death. A living will (advance directive) documents your wishes about life-sustaining treatment, artificial nutrition, and end-of-life care while you're alive but unable to communicate. It guides your healthcare agent and doctors. Both are essential.

Question 31

Do I need a power of attorney?

Accepted Answer

Yes, absolutely. A durable financial power of attorney allows someone you trust to handle financial matters if you become incapacitated. Without one, your family may need expensive, time-consuming court guardianship proceedings just to pay your bills or manage your accounts. We recommend both financial and healthcare powers of attorney.

Question 32

Can I have multiple agents on a power of attorney?

Accepted Answer

Yes, you can name co-agents who must act together (provides oversight but can be cumbersome) or give each agent authority to act independently (more convenient but less control). You can also name successor agents who only serve if your first choice cannot. We'll discuss the pros and cons of each approach.

Question 33

When does a power of attorney take effect?

Accepted Answer

You choose. An "immediate" power of attorney is effective when signed—most common for financial powers of attorney. A "springing" power of attorney only takes effect upon a triggering event, typically incapacity certified by physicians. Springing powers provide more protection against misuse but can cause delays when needed. We generally recommend immediate powers for trusted agents.

Question 34

Does a power of attorney survive death?

Accepted Answer

No. All powers of attorney terminate immediately upon death. Your agent has no authority to act on your behalf after you die—that responsibility transfers to your executor (for probate assets) or successor trustee (for trust assets). That's why you need both powers of attorney for life AND a will or trust for after death.

Question 35

What is a HIPAA authorization?

Accepted Answer

HIPAA (federal health privacy law) prevents healthcare providers from sharing your medical information without authorization. A HIPAA Authorization form allows designated individuals—your healthcare agent, family members, and others—to access your medical records and speak with your doctors. This is separate from your healthcare power of attorney and should include additional family members.

Question 36

What if my agent abuses their power?

Accepted Answer

Choose agents carefully—they have significant control. Protections include: naming co-agents, requiring certain transactions have oversight, including reporting requirements in the document, and naming a "trust protector" who can remove and replace agents. If abuse occurs, courts can revoke powers and hold the agent liable. Prevention through careful selection is best.

Question 37

Will my estate owe estate taxes?

Accepted Answer

The 2024 federal estate tax exemption is $13.61 million per person ($27.22 million for married couples). Fewer than 0.2% of estates owe federal estate tax. Arizona has NO state estate or inheritance tax. However, the federal exemption may drop to approximately $7 million in 2026 unless Congress acts—larger estates should plan now.

Question 38

What is the federal estate tax exemption?

Accepted Answer

For 2024, each person can pass $13.61 million to heirs without federal estate tax. Married couples can effectively shelter $27.22 million. Amounts above the exemption are taxed at 40%. The current high exemption is set to expire after 2025, potentially dropping to around $7 million per person unless Congress acts.

Question 39

Does Arizona have an estate tax?

Accepted Answer

No! Arizona has NO state estate tax and NO inheritance tax. This makes Arizona one of the most favorable states for wealth transfer. Your heirs will not owe any Arizona tax on inheritances, regardless of amount. Only federal estate tax may apply to very large estates.

Question 40

Will my heirs owe income tax on their inheritance?

Accepted Answer

Generally, no. Inherited assets are not considered income to the recipient. However, there are exceptions: distributions from inherited traditional IRAs are taxable income, income earned by the estate or trust is taxable, and gains on inherited property above the "stepped-up" basis are taxable when sold.

Question 41

What is a stepped-up basis?

Accepted Answer

When you inherit an asset, its tax basis "steps up" to its fair market value at the date of death. This eliminates capital gains tax on appreciation during the deceased's lifetime. For example, if stock was purchased for $10,000 and is worth $100,000 at death, the heir's basis is $100,000—selling immediately triggers no capital gains tax. This is a significant benefit of holding appreciated assets until death.

Question 42

Is life insurance taxable?

Accepted Answer

Life insurance proceeds are generally income-tax-free to beneficiaries. However, the death benefit is included in your estate for estate tax purposes unless owned by an irrevocable life insurance trust (ILIT). For larger estates and policies, an ILIT can keep the proceeds out of your taxable estate.

Question 43

How do I plan for a blended family?

Accepted Answer

Blended families require careful planning to balance interests. Common strategies include: QTIP trusts that provide for your spouse during their lifetime with remainder to your children, life insurance to provide for your spouse while other assets go to children, clear communication with all family members, and prenuptial agreements that coordinate with your estate plan.

Question 44

What if I have a child with special needs?

Accepted Answer

Never leave assets directly to a person with disabilities—it can disqualify them from essential government benefits like SSI and Medicaid. A Special Needs Trust provides for quality of life needs without affecting benefits. All family members should be instructed not to leave direct gifts either. This planning is critical and requires specialized expertise.

Question 45

How do I plan for my business succession?

Accepted Answer

Business succession planning addresses: who will take over (family, employees, or sale), when transition will occur, how successors will acquire ownership, what happens upon your death or incapacity, and fair treatment of family members not in the business. Key documents include buy-sell agreements, business valuations, and coordinated estate plans.

Question 46

How do I protect my business from personal liability?

Accepted Answer

Business entity selection (LLC, corporation) provides the first layer of protection—keeping business and personal assets separate. Additional strategies include proper insurance (liability, key person, business continuation), operating agreements with clear governance, and in some cases, trusts designed for asset protection. Set up these structures before any problems arise.

Question 47

What if I own property in multiple states?

Accepted Answer

Without proper planning, your family may face probate in each state where you own real estate (called "ancillary probate"). A revocable living trust avoids this—property in the trust doesn't go through probate regardless of location. This is one of the strongest reasons for a trust if you own out-of-state property.

Question 48

How do I include charitable giving in my estate plan?

Accepted Answer

Options include: direct bequests in your will or trust, naming charities as beneficiaries of IRAs (most tax-efficient), charitable remainder trusts (income to you, remainder to charity), donor-advised funds, and charitable lead trusts. We can help structure giving to maximize tax benefits while supporting causes you care about.

Question 49

What about my pets?

Accepted Answer

Arizona allows pet trusts that provide for your animals' care after your death or incapacity. You can name a caretaker, specify care standards, and set aside funds. For shorter-lived pets, simpler provisions in your will may suffice. For longer-lived animals or those requiring special care, a trust ensures ongoing support.

Question 50

What if I have international assets or citizenship?

Accepted Answer

International assets complicate estate planning significantly. Different countries have different inheritance laws—some have "forced heirship" rules. You may need separate wills for assets in different countries. Tax treaties affect taxation. U.S. citizens and residents are taxed on worldwide assets. Work with attorneys familiar with each relevant jurisdiction.

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