Ask the Expert: Are My Estate Planning Documents in Need of a Checkup?

Ask the Expert

Are My Estate Planning Documents in Need of a CheckUp?

Your typical simple “estate plan” often includes a Will, a Trust, and Powers of Attorney. While you may have created estate planning documents in the past, it is usually a good practice to look back and confirm that your documents were properly created and meet your present needs. If you are not sure if your estate documents are valid, you may wish to check the Arizona statutes or contact an attorney. The following are some questions you may wish to ask yourself to start with as you begin to re-evaluate your estate plan documents:

Wills

„ Does your Will reflect your current beneficiary intentions and how they will receive their benefits? „ Is having a Will alone sufficient to satisfy your estate planning needs? „ Note: Blended families are prevalent today, and with a blended family, your Will may not be sufficient to ensure the children from your first marriage are provided for after the death of your current spouse. „ Are you comfortable with your beneficiaries having to go through the time and expense of probate? „ Did you name an appropriate personal representative? „ Did you create the separate list of personal property items referenced in the Will? „ Did you tell your personal representative where your Will is kept?

Trusts

„ Does your Trust accurately reflect your current wishes? „ Has the Trust been funded? „ Have you selected a proper alternate trustee capable of handling their fiduciary duties or whose appointment is likely to lead to family conflict? „ If your Trust required the establishment of subtrusts after the death of the initial spouse, did you set up those sub-trusts? „ Has there been a change in your assets, beneficiaries, or successor trustees that requires an amendment or restatement?

Powers of Attorney

With regard to Powers of Attorney, one of the most common problems is that people wait too long to create such a document. That is, people fail to create a Power of Attorney while they can. For those that have timely created a Power of Attorney, ask yourself:

„ Does your Power of Attorney have the right people identified as your agents? Are they in the order you wish to have them? „ Is the power granted effective immediately, or is it a springing power that only goes into effect upon incapacity? „ Have you appointed an attorney-in-fact who is capable of handling the responsibilities? „ Is your Power of Attorney accessible to the attorney-in-fact and healthcare providers?

While the above are only a sampling of questions, asking yourself these types of questions is a great first step to making sure you are putting your heirs in a position to succeed. Garrett Olexa, Esq., Attorney, Member, Council of Professional Advisors