What Documents Are Needed for Estate Planning?
Estate planning determines who will receive your assets and manage your estate after you pass away. While most people don’t love thinking about their end-of-life wishes, having an estate plan in place ensures they are adequately accounted for.
As estate planning attorneys, the legal team at Rilus Law is prepared to walk you through the process and double-check that everything is as it should be. Let’s begin by discussing what legal documents are needed for your essential estate planning:
Estate Planning Checklist
Wondering what documents are needed for estate planning? Most people are familiar with wills and/or trusts because they are some of the estate planning basics. However, those are just the beginning of the documents needed.
Last Will and Testament
Your last will and testament specifies who you want to inherit certain assets or property after you pass away. Additionally, it can name guardians for your minor children. However, it is a common misconception that a will allows you to avoid probate. This isn't always the case.
Revocable Living Trust
Similar to a will, revocable living trusts help you distribute assets after you pass away. The trust takes “ownership” of any assets that are put within it. However, you can still access and control those assets while you’re alive. The major difference between a trust and a will is that a trust generally avoids probate court proceedings.
Beneficiary Designations
Certain assets (including 401(k) accounts, pensions, and life insurance policies) can skip probate and transfer directly to a beneficiary when you pass away. Beneficiary designations simply direct who they go to.
Advanced Health Care Directive (AHCD)
This document includes both a living will and a medical or health care power of attorney. Essentially, it outlines how your medical care decisions should be made if you ever become incapacitated.
Financial Power of Attorney
A financial power of attorney is also known as a durable power of attorney. This document gives someone the legal authority to manage your finances and property if you are unable to do so yourself.
Insurance Policies and Financial Information
We recommend keeping all your insurance documents in one place. Additionally, you should make a list of your financial accounts (and provide access instructions for each of them).
Proof of Identity Documents
Proof of identity documents include your social security card, military discharge papers, and prenuptial agreements. They also include any birth, marriage, or divorce certificates.
Titles and Property Deeds
It’s important to locate the proper titles and deed documents for your property (home, vehicles, real estate, etc.). And if you’d like that property to bypass probate, you should transfer it to your revocable living trust. (That means your deeds and titles should list the trust as the owner.)
Digital Asset Trust
Because you access the majority of your accounts online or receive statements by email, it’s important for someone to be able to access your digital accounts. However, sharing your passwords with your heirs, trustee, or personal representative doesn’t respect your privacy and often violates the terms of your account. Therefore, you must create a Digital Asset Trust to give limited access to your email and other digital accounts of your choosing. This is the safest way to share access, as it respects your privacy, the terms of various accounts, and it ensures that you will preserve your data.
Funeral Instructions
Finally, your estate planning documents should include funeral instructions and end-of-life wishes. These let your family members know how you want to be buried, etc.
Best Estate Planning Lawyers in Phoenix, AZ
Wondering what documents are needed for estate planning? The legal team at Rilus Law can help you get your end-of-life affairs in order. With ample experience in the industry, we’ve helped hundreds of clients in Arizona and California craft the estate plans of their dreams. If you’d like to learn more about how we can serve you, contact our team today for a free consultation.