Wills and Trusts in Chandler, AZ
Do you start to feel uncomfortable when you think about wills and trusts?
You are not alone. According to the AARP, 6 out of 10 American adults have not taken this necessary step.
Unfortunately, if you do not prepare, your loved ones in Chandler may have difficulties transferring assets. Probate can be lengthy and expensive, to say nothing of the disputes that may come up. Learn how the process works by reading this article and contacting an attorney.
How Do Wills and Trusts Work?
Wills and trusts guarantee your assets divide as expected after you pass away in Chandler, Arizona. Although it may be an uncomfortable topic, it is necessary to avoid complications and disagreements.
You do not have to hire an estate planning lawyer to draft a will or establish a trust. Nonetheless, seeking their guidance can be extremely helpful. Both documents must comply with state requirements. Having a lawyer specializing in wills and trusts can ensure everything meets expectations.
Trust vs Will
Wills and trusts are crucial tools in Chandler, AZ that have distinct roles and functions. A will is a legal document that outlines your assets, beneficiaries, and instructions for distribution. On the other hand, trusts create a financial arrangement that facilitates the transfer of savings, property, or investments. While they serve different purposes, they often complement each other as components of your estate planning strategy.
How to Create a Will or Trust in Chandler, Arizona
Identify Assets
You must first take stock of all your assets to create a will or trust. Examples include property, investment accounts, or business ownership. This process is vital, so the guidance of an estate attorney can be a substantial benefit. After identifying your assets, you can plan for their distribution with clear objectives.
Choose the Distribution
In addition to outlining how your assets should go to your loved ones, look at assets beyond your control. For instance, a life insurance policy or a 401k may have specified beneficiaries. They need to be in your estate planning documents.
Choose the Executor of your Chandler, AZ Will or Trust
The executor of your will or trust is legally responsible for carrying out your desires. You want a trustworthy individual for this role, and it may be beneficial to consider an attorney or accountant. A dependable will or trust lawyer can guide you through the selection process and inform your decisions.
To serve as a personal representative in Chandler, the person must meet these criteria:
- At least 18 years old
- U.S. resident
- No felony convictions.
- Willing and able to serve in the role
It is also notable that other parties can apply to serve in this capacity. For instance, a creditor can petition the court 45 days after the decedent passes away.
Choose a Guardian
You will want to appoint a guardian in your will. Otherwise, the court will control who takes this role for your children.
Sign with Witnesses
Your will or trust only becomes official once you sign it, along with witnesses. This action should only happen once you are reasonably confident they reflect your wishes. Given its importance, it is advisable to have an estate planning attorney review everything first.
Update and Create your Will or Trust as Necessary
Although you may feel bound to your decisions, there are ways to adjust them. If your circumstances change, do not hesitate to amend your will to ensure that your final wishes are unambiguous.
Some common reasons a Chandler resident may change their will include these reasons:
- Getting married
- Having children
- Divorce
- Changes in financial circumstances, such as the acquisition or sale of assets
- Shifts in relationships with beneficiaries, such as estrangement or reconciliation
The Different Types of Wills in Chandler, AZ
Simple Will
A simple will fulfills the fundamental criteria for distributing your assets after you pass away. Regardless, it still needs to go through probate. This document outlines how your assets should divide, and it can include money to care for your pets.
Joint Will
A joint will is a legal document created by two individuals, often a married couple. It designates where their assets should go after one or both pass away. Although it is a single document, it can be two distinct entities under the law.
Living Will
This type of legal document has a different function than the name may suggest. It establishes instructions for medical providers regarding your end-of-life care. This type of will specifies your preferences in advance when you become incapacitated. It typically does not include beneficiaries for your assets after your passing and serves this singular purpose.
Holographic Will
A holographic will is a handwritten testament, whether it is on a napkin or a piece of paper. Although most states mandate witnesses to sign, a holographic will may still be legally valid. Many states have rules that allow them when the decedent writes one during an emergency.
Arizona Revised Statutes specify that a holographic will can be valid if it meets. Nonetheless, it must meet state standards. For instance, the document must be in the testator’s handwriting and signed by them. You do not need witnesses, but these testaments can face legal challenges and disputes.
Pour-Over Will
A pour-over will is a type of will that establishes a trust and designates which assets should transfer. This agreement serves as a safeguard. It guarantees that assets go into it that may become overlooked otherwise.
The Different Types of Trusts in Chandler, AZ
Irrevocable Trust
Irrevocable trusts cannot change or end without the beneficiaries’ consent. Once assets transfer into the trust, the grantor relinquishes ownership. While this trust may offer tax benefits, its appropriateness depends on your circumstances. It can have drawbacks if your situation does not call for it.
Revocable Trust
A revocable trust provides the flexibility to make changes until someone passes away. This trust can be beneficial if you need funds for living expenses while assuring your estate plans remain.
Family Trust
Individuals establish this trust to provide for their family members after passing away. This agreement offers a sense of assurance that beneficiaries will have access to what they allocated.
Charitable Trust
This trust allows you to leave a charitable legacy while providing for your loved ones. Some individuals fund it with business ownership, stocks, or real estate.
How to Avoid Probate in Chandler, AZ
While states may have similarities, the specifics can vary wildly for probate. In most states, it is mandatory unless the estate is small and does not involve real estate. Consulting with an experienced will and trust or estate planning attorney will provide the clarity you need here.
Arizona has several significant differences in its probate process compared to other states. These include a simplified probate process for small estates of $100,000 or less. There is also a shorter timeline for creditors to make claims and non-judicial settlement agreements.
Probate cases from Chandler are often the jurisdiction of the Maricopa County Superior Court Probate Division. Consequently, you may need to attend hearings at its location in Phoenix.
Work with an Experienced Chandler, Arizona Estate Planning Will and Trust Attorney
Planning for your eventual passing is not a pleasant task. Additionally, you may have questions about how wills and trusts operate in Chandler AZ. Despite being tedious, it is crucial to protect your legacy and family.
A trust or will attorney can be invaluable in detecting issues that may lead to probate. If you feel like you require assistance, it is worth considering a consultation.
Do you want to know more about how to talk to local legal counsel? Request help through our website or call (866) 345-6784 today. We can even help find legal counselors that work across Arizona state lines.
