Planning for the future allows you to safeguard your family, your legacy, and the financial security you’ve worked hard to build. The best way you can do that is by developing a well-crafted estate plan with a trusted attorney.
At Mushkatel, Gobbato, & Kile, P.L.L.C., our knowledgeable Scottsdale estate planning lawyers have over 50 years of combined experience helping Scottsdale clients enjoy the peace of mind that comes with knowing their loved ones and their legacies are protected by a clear, comprehensive estate plan that honors their wishes.
Contact us today to review your estate planning needs and planning strategies and learn more about how we can be of assistance in the comfortable environment of our Scottsdale, AZ office.
What Is Estate Planning and Why Is It Important?
Estate planning is the process of organizing your affairs, so your wishes are carried out in the event of your death or incapacity. The process includes drafting legal documents that determine how your assets will be distributed, assign guardianship for your minor children, and designate agents to carry out your healthcare wishes when you lack the ability to speak for yourself.
Without an estate plan, Arizona’s intestacy laws will determine who receives your assets. In this process, you may not see your wishes honored after your passing. The intestate process can also add stress and heartache for your loved ones during a difficult time, as well as increase estate taxes on the assets they inherit.
When Should I Begin My Estate Plan?
Some people think estate planning is only for older people or the wealthy. However, the truth is that any adult with assets, dependents, or health concerns should start estate planning as soon as possible. If you own property or a business in Scottsdale, or have a minor child, your estate plan can provide vital protections.
What Are the Critical Documents in an Estate Plan?
Well-rounded estate plans typically include the following items:
- Last will and testament – This document establishes how your property will be distributed after your passing, names an executor who will manage your estate, and names guardians for your minor children.
- Revocable living trust – This trust allows for the control of your assets to be transferred quickly, easily, and privately upon your passing. It can make asset distribution far simpler, and it can help your loved ones avoid probate.
- Durable power of attorney – This document appoints someone to handle your finances if you become incapacitated. The person can manage your bank accounts, pay bills, file taxes, and handle other financial decisions.
- Health care power of attorney – The agent you designate in this document is authorized to make medical decisions on your behalf. If you are unconscious or unable to make decisions, your health care proxy can speak with doctors and make treatment decisions in line with your preferences.
- Living will – This document provides instructions for healthcare preferences regarding end-of-life care and life-sustaining treatment. It removes the burden of making difficult medical decisions on your behalf by making your wishes clear.
An attorney can work with you to tailor an estate plan that meets your needs and goals, including using different estate planning tools and advanced health care directives.
How Often Should I Update My Estate Plan?
Significant life changes should trigger changes to your estate plan. We recommend reviewing your documents every three to five years and making immediate changes after:
- Marriage or divorce
- Birth or adoption of a child
- Buying or selling property
- Starting or selling a business
- Death of a family member or beneficiary.
Our experienced estate tax planning lawyers can help keep your documents up to date and provide many other legal services, whether adjusting to your life changes, staying up-to-date with Arizona law or tax codes, or seeking tax benefits, asset protection, or business succession planning.
Why Do I Need a Living Will?
A living will makes your wishes known regarding life-sustaining treatment if you become incapacitated or suffer a terminal condition. Without this document, your family may face the burden of making difficult choices on your behalf, and they may not make a choice that aligns with your wishes.
How Soon Should I Consider Creating a Will?
Whether you’re a young professional in South Scottsdale, a parent raising a family in the Kierland area, or a retiree in Pinnacle Peak, the time to create a will is right now. Your will makes your intentions clear and legally binding, and it can prevent Arizona courts from making decisions about your estate.
What Is the Difference Between a Will and a Trust?
Wills and trusts both deal with the transfer of your assets to loved ones. However, some notable distinctions separate them, including the following:
- Will – It outlines how your assets should be distributed after your passing and names guardians for minor children. Wills must go through probate, a court-supervised process that can be time-consuming.
- Revocable trust – It allows you to manage and distribute your assets while avoiding probate. You maintain control of the trust during your lifetime, and assets are transferred directly to your chosen beneficiaries upon your passing. Revocable trusts can be modified or revoked.
- Irrevocable trust – A trust that generally cannot be changed once it’s established. It can help reduce estate taxes and protect your assets from creditors.
What Is Power of Attorney?
Power of attorney (POA) is a legal document that appoints a trusted person to make decisions on your behalf if you become unable to do so. If you don’t have power of attorney in place, your loved ones may need to go through the Arizona courts to gain the right to make important choices for you while you’re incapacitated.
Are There Different Types of Powers of Attorney?
The following are the four main types of power of attorney in Arizona:
- Durable power of attorney – Designates an agent to make your legal and financial decisions. A durable POA enables an agent to manage bank accounts, pay bills, and take care of day-to-day financial responsibilities.
- Medical (or health care) power of attorney – Appoints someone such as a family member to make medical choices for you if you become incapacitated, including consenting to or refusing medical treatment, choosing healthcare providers, and coordinating long-term care.
- Special or limited POA – Grants authority for specific tasks, like selling property or managing a business. This POA automatically expires once the task is completed or the specified period passes.
- Springing power of attorney – This POA comes into effect only after a specific condition is met, such as your incapacity.
Contact a Scottsdale Estate Planning Attorney
If you want to safeguard your family’s future, creating an estate plan is an absolute must. The trusted estate planning lawyers at Mushkatel, Gobbato, & Kile, P.L.L.C., have the knowledge, skills, and decades of combined experience to guide you through the full process. Contact us today for your consultation and learn more about our service-based approach to serving our estate-planning clients in Scottsdale and throughout Arizona.
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