Wills & Trusts
Make a Plan
Just as there are several different ways to travel, there are several different kinds of documents that you can use to create your estate plan in Arizona. Here's our short guide to your options:
Intestacy
This is the "stick out your thumb and try to hitchhike" approach. Hardly anyone in Arizona other than estate lawyers have heard of it, but "intestacy", which is legalese for "no document at all" is (unfortunately) the most popular approach to estate planning in the United States today. While the government doesn't automatically seize the assets of a person who dies without a will, it is true that if a person has not specified their wishes in a legally effective estate plan, their estate will be divided according to the state's default rules which are called "intestacy statutes." Arizona's intestacy statutes can be difficult to interpret and apply, which leaves the door open to expensive and stressful contested probates.
Wills
Most people have heard of them, but haven't gotten around to creating one. If intestacy is trying to get somewhere by hitchhiking, then a last will is more like hiring a taxi: you generally arrive where you wanted to go, but you won't have much control over the process and it may not be the fastest or cheapest way to get there. On the other hand, even though it does not avoid probate, a document that meets Arizona's requirements for a valid last will and testament will help ensure that the probate is carried out more efficiently than it would have been without a will. This is because a well drafted will can answer several key questions that otherwise would have to be answered by your loved ones, or by the probate court. Some of these questions are who wills serve as the Personal Representative (called "executor" in some states) and how to determine the disposition of your property. Also, if you have used a trust or beneficiary forms to handle your major assets, a will can serve as a useful "Plan B" if there are unexpected difficulties in distributing your assets as you intended.
Trusts
Once used mainly by the wealthy, these days almost everyone can benefit from the flexibility and control that a trust offers. While they gained popularity as a tax planning tool, in the last 10 years trusts have more often been used as tools that wrap up your affairs as quickly and inexpensively as possible while avoiding probate and providing for loved ones in the future. If you want to be in the driver's seat for your legacy, an Arizona living trust is often the best choice.
Beneficiary Forms
Many financial institutions allow you to designate beneficiaries for your assets, insurance policies, annuities, and accounts. In addition, Arizona allows owners to transfer their real estate with beneficiary deeds and individual owners can use the MVD's form to choose beneficiaries for their vehicles. These important tools can enhance the value of an existing estate plan.
