Setting Up An Estate Plan In Arizona

The following article will cover:

• The importance of setting up an estate planning document as soon as possible, regardless of age, to avoid leaving behind a financial and legal mess for your family.
• The need to review estate planning documents annually and make necessary changes or updates based on significant life events or legislative changes.
• The value of hiring an experienced estate planning attorney rather than relying on online services.

When Is The Best Time To Set Up An Estate Planning Document?

The best time to set up an estate planning document is now, irrespective of your age. The future is unpredictable, and accidents or unforeseen events can happen anytime, leaving you incapacitated. By setting up an estate plan, you can prevent your family from having to clean up a financial and legal mess.

Popular country singer Kenny Chesney famously said, “Everyone wants to go to heaven, but no one wants to go now.” This sentiment seems to resonate with many people, especially the young, who often perceive themselves as invincible. When I started my own law firm, I expected most of my clients to be people like me – in their mid-30s with young children. However, reality proved otherwise. Very few clients in their 30s consider estate planning, unless they have a special-needs person to plan for.

From my experience, most clients interested in estate planning are aged 55 and above. These are typically individuals reflecting on their life achievements and looking ahead to their golden years. However, delaying estate planning can be a critical mistake, especially for those with minor children. For instance, if you die young with life insurance, your children will inherit the policy at 18. But, consider if you would have made wise financial decisions at that age.

Instead of leaving large sums directly to young beneficiaries, it might be wiser to set up a trust with a step distribution system. You could arrange for the beneficiaries to access a third of their inheritance at ages 18, 25, and 30. This plan not only provides them with financial support at different stages of their lives but also discourages rash spending. If a beneficiary hasn’t matured financially by age 30, chances are no amount of planning on your part could have ensured the wise use of their inheritance.

How Often Do I Need To Review My Estate Planning Documents? Can I Make Changes Or Updates At Any Time?

Your estate plan should be entirely amendable and revocable during your lifetime. It’s good practice to review your plan annually, perhaps choosing a specific date such as July 1st to do so. During the review, consider the provisions, appointments, and distributions in your documents. Reflect on any significant changes in your life such as deaths, births, or alterations in your children’s financial circumstances.

Once you’ve taken these steps, decide whether these life changes are significant enough to warrant changes in your estate plan. It’s important to note that legislative changes might also necessitate amendments to your plan. For instance, as of January 1, 2026, the current estate tax exemption of $12.92 million per person will drop to $6 million. This means that individuals with estates exceeding the new limit will need to adjust their plans accordingly.

Do I Need An Experienced Estate Planning Attorney, Or Can I Do This On My Own With An Online Estate Planning Service?

While I am an attorney and may therefore be biased, I firmly believe that experienced estate planning attorneys offer invaluable insight and assistance. The rise in self-help programs and non-lawyer legal work does not replace the expertise an attorney brings to the table.

Lawyers specializing in estate planning have seen firsthand the consequences of poor or absent planning. They understand how to evaluate whether individuals are suitable for certain roles in the estate plan, a crucial element that might be overlooked when using online services like LegalZoom. These platforms simply fill in the blanks of your documents but do not provide legal advice or ask the critical questions an attorney would.

An experienced attorney will begin by understanding your goals and then create strategies to accomplish them. They’ll also question your decisions, such as appointing your children as trustees in birth order, by considering their individual skills and suitability for the role.

Moreover, the annual review process is crucial, and many who opt for self-help might not be aware of its importance or how to effectively execute it. Hiring an attorney can ensure that this vital step is not overlooked. Ultimately, estate planning is not just about producing documents. It also involves providing peace of mind that your estate will be managed and distributed in accordance with your wishes. For more information on Setting Up An Estate Plan In Arizona, an initial consultation is your next best step.