What Do I Need for Estate Planning?

When they think of estate planning, many people will think about drafting a will or putting a trust in place. But, there’s more to it than that. Several estate planning documents are needed to seamlessly transfer assets to heirs after your death. However, what are the legal documents you need?

If you’re tempted to type ‘what do I need for estate planning?’ into your search bar, you’ve come to the right place. Rilus Law is Arizona’s leading estate planning law firm, and we’re revealing everything you need to know about the process in today’s blog post.

Essential Estate Planning Documents

So, what do I need for estate planning? Below are six estate planning basics that everyone should be familiar with:

Will and Trust

A lot of people are under the impression that wills and/or trusts are only for the wealthy. However, that couldn’t be farther from the truth. Your will and trust are essential elements of your estate plan – even if you don’t have any substantial assets. Making sure your will and trust work together and don’t contradict each other is important, as these documents dictate how your property will be distributed to your loved ones after your death.

Durable Power of Attorney

A durable power of attorney names an agent to have the financial power to act on your behalf if you are ever unable to do so yourself. The agent you select will have the power to transact real estate, enter into financial transactions, and make other legal decisions on your behalf. If you do not have a durable power of attorney and you become mentally incompetent, the state probate courts will distribute your assets.

Beneficiary Designations

While instructions for many of your assets are covered in your will, several will not be (401(k) plan assets, life insurance policies, etc.). Therefore, you must designate a beneficiary and contingent beneficiary for those accounts. Again, if you fail to name a beneficiary, the courts will decide on your behalf which beneficiaries receive assets.

Letter of Intent

Your letter of intent simply defines what you want to be done with a particular asset after your death or incapacitation. Sometimes, the letter of intent provides funeral details or other end-of-life wishes. And while they are not technically valid in the eyes of the law, these documents can help the probate judge carry out your wishes.

Healthcare Power of Attorney

Similar to a durable power of attorney, a healthcare power of attorney designates another individual to make important health care decisions on your behalf. Just like a durable power of attorney, it comes into play if you become incapacitated or mentally incompetent.

Guardianship Designations

Guardianship designations might already be included in your will or trust. Essentially, they designate an individual or couple to raise your children if you become unable to do so yourself. Additionally, you can even designate a guardian to raise your children and a separate conservator to manage their finances until they reach a certain age.

Top Estate Planning Attorneys in Phoenix, AZ

So, what do I need for estate planning? Hopefully, today’s blog post provided the answer and acts as an estate planning checklist. If you need help getting your end-of-life affairs in order or determining what your estate plan includes, the legal team at Rilus Law would be happy to walk you through the process. Contact our office to start preserving your legacy today.