In my last post I said that I would talk about estate planning vehicles that may be appropriate for different stages of life - Early Adulthood, Mid-Life, and Empty Nest/Retirement. In the interest of keeping it concise, I've decided to provide only a bulleted list with brief explanations. Some of the items are identical from one stage of life to the other - I apologize, upfront, for the additional length, but it seemed better to be able to hit a section and get all the information than to say "See above" and make readers scroll all over the page to get to the information.
Also, by way of explanation, probate assets are those that are subject to administration by a probate court in order to re-title them into the name of your intended heir, beneficiary, or devisee. Non-Probate assets are those that do not require court administration for re-titling. Some examples of non-probate assets are: 1) accounts that have a named death beneficiary (for example life insurance); 2) jointly held accounts/property; and 3) assets owned by a Trust.
Early Adulthood:
Life Situation:
Not a lot of assets. Young. Healthy. Immortal.
Estate Planning Considerations:
- Will - a simple will stating how you would like assets devised may be sufficient. If your probate assets are substantial, a revocable trust may be a better option - in which case, refer to the "Mid-Life" section below.
- Health Care Power of Attorney - This designates an agent to make Health Care decisions for you if you are unable to decide for yourself.
- Living Will - to put it not-so-delicately, this determines whether and when you want the plug pulled if you are on life support.
- Mental Health Care Power of Attorney - this designates an agent to make mental health care decisions if you are mentally incapacitated.
- Health Care Directive - In Arizona - as with many other states - you can put your Living Will, Health Care Power of Attorney, and Mental Health Care Power of Attorney on file with the State. The State then provides a wallet card. Assuming no other options are available and you are unable to communicate your wishes, the hospital may access your information from the State registry.
- Final Disposition Instructions - this is merely a written set of instructions respecting whether you wish to be buried or cremated, where you want to be buried, how you want your ashes cared for, and so on.
Mid-Life:
Life Situation:
Building assets. Married/Domestic Relationship. Children. Less-Immortal.
Estate Planning Considerations:
- Trust - Usually a revocable living trust is an appropriate vehicle at this stage, but other trust options may also be warranted. A revocable trust is one that can be revoked at any time by the Grantor/Trustor/Settlor (i.e. - the person who set up the trust; i.e. You).
- Pour-over Will - This type of will has the effect of moving property that does not belong to the Trust before your death into the Trust after your death. A Pour-Over Will will also include provisions for guardianship of minor children and other important elements. This Will will need to be probated, but may be simplified greatly if assets that would otherwise be "probate assets" are properly transferred to your Trust.
- Durable Power of Attorney - This is a Power of Attorney that gives very broad powers to the person you elect. Generally, this gives your agent the power to step into your shoes and act - in a legal sense - as you in virtually every situation. For example, to manage your personal finances, to manage a business, to buy and sell property, etc. Generally, because of the amount of power given, I recommended using a "springing" power of attorney. "Springing," means that it only becomes effective after a certain event. Typically the "event" is mental or physical incapacity.
- Health Care Power of Attorney - Who makes Health Care decisions for you if you are unable to decide for yourself.
- Living Will - To put it not-so-delicately, this generally is the document used to state your wishes with respect to whether and when you want "the plug" pulled.
- Mental Health Care Power of Attorney - Who makes care decisions if you are mentally incapacitated.
- Health Care Directive - In Arizona - as with many other states - you can put your Living Will, Health Care Power of Attorney, and Mental Health Care Power of Attorney on file with the State. The State then provides a wallet card. Assuming no other options are available and you are unable to communicate your wishes, the hospital may access your information from the State registry.
- Final Disposition Instructions - This is merely a written set of instructions respecting whether you wish to be buried or cremated, where you want to be buried, how you want your ashes cared for, and so on..
Empty-Nest/Retirement:
Life Situation:
Growing assets. Married/Re-Married. Children. Grandchildren. Mortal.
Estate Planning Considerations:
- Trust (Revocable or Irrevocable - again, the choice depends on how trust assets are to be distributed to beneficiaries, the size of the estate, and other considerations). Being more firmly established, it is easier to see what your estate involves, and also to determine exactly where and how you want your estate distributed. The most appropriate option should be discussed with your estate planning and tax attorney to ensure the best outcome.
- Pour-over Will - This type of will has the effect of moving property that does not belong to the Trust before your death into the Trust after your death. A Pour-Over Will will also include provisions for guardianship of minor children and other important elements. This Will will need to be probated, but may be simplified greatly if assets that would otherwise be "probate assets" are properly transferred to your Trust.
- Durable Power of Attorney - This is a Power of Attorney that gives very broad powers to the person you elect. Generally, this gives the person to step into your shoes and act - in a legal sense - as you in virtually every situation. For example, to manage your personal finances, to manage a business, to buy and sell property, etc. Generally, because of the amount of power given, I recommended using a "springing" power of attorney. "Springing," means that it only becomes effective after a certain event - usually if you become mentally or physically incapacitated and can't do things for yourself.
- Health Care Power of Attorney - Who makes Health Care decisions for you if you are unable to decide for yourself.
- Living Will - To put it not-so-delicately, this determines whether and when you want the plug pulled if you are on life support.
- Mental Health Care Power of Attorney - Who makes care decisions if you are mentally incapacitated.
- Health Care Directive - In Arizona - as with many other states - you can put your Living Will, Health Care Power of Attorney, and Mental Health Care Power of Attorney on file with the State. The State then provides a wallet card. Assuming no other options are available and you are unable to communicate your wishes, the hospital may access your information from the State registry.
- Final Disposition Instructions - this is merely a written set of instructions respecting whether you wish to be buried or cremated, where you want to be buried, how you want your ashes cared for, and so on.
DISCLAIMER: This website is for Informational Purposes only. The information provided is not comprehensive, does not constitute legal advice, and does not create an attorney-client relationship. If you need legal advice, please contact an attorney in your local community or State.
Also, by way of explanation, probate assets are those that are subject to administration by a probate court in order to re-title them into the name of your intended heir, beneficiary, or devisee. Non-Probate assets are those that do not require court administration for re-titling. Some examples of non-probate assets are: 1) accounts that have a named death beneficiary (for example life insurance); 2) jointly held accounts/property; and 3) assets owned by a Trust.
Early Adulthood:
Life Situation:
Not a lot of assets. Young. Healthy. Immortal.
Estate Planning Considerations:
- Will - a simple will stating how you would like assets devised may be sufficient. If your probate assets are substantial, a revocable trust may be a better option - in which case, refer to the "Mid-Life" section below.
- Health Care Power of Attorney - This designates an agent to make Health Care decisions for you if you are unable to decide for yourself.
- Living Will - to put it not-so-delicately, this determines whether and when you want the plug pulled if you are on life support.
- Mental Health Care Power of Attorney - this designates an agent to make mental health care decisions if you are mentally incapacitated.
- Health Care Directive - In Arizona - as with many other states - you can put your Living Will, Health Care Power of Attorney, and Mental Health Care Power of Attorney on file with the State. The State then provides a wallet card. Assuming no other options are available and you are unable to communicate your wishes, the hospital may access your information from the State registry.
- Final Disposition Instructions - this is merely a written set of instructions respecting whether you wish to be buried or cremated, where you want to be buried, how you want your ashes cared for, and so on.
Mid-Life:
Life Situation:
Building assets. Married/Domestic Relationship. Children. Less-Immortal.
Estate Planning Considerations:
- Trust - Usually a revocable living trust is an appropriate vehicle at this stage, but other trust options may also be warranted. A revocable trust is one that can be revoked at any time by the Grantor/Trustor/Settlor (i.e. - the person who set up the trust; i.e. You).
- Pour-over Will - This type of will has the effect of moving property that does not belong to the Trust before your death into the Trust after your death. A Pour-Over Will will also include provisions for guardianship of minor children and other important elements. This Will will need to be probated, but may be simplified greatly if assets that would otherwise be "probate assets" are properly transferred to your Trust.
- Durable Power of Attorney - This is a Power of Attorney that gives very broad powers to the person you elect. Generally, this gives your agent the power to step into your shoes and act - in a legal sense - as you in virtually every situation. For example, to manage your personal finances, to manage a business, to buy and sell property, etc. Generally, because of the amount of power given, I recommended using a "springing" power of attorney. "Springing," means that it only becomes effective after a certain event. Typically the "event" is mental or physical incapacity.
- Health Care Power of Attorney - Who makes Health Care decisions for you if you are unable to decide for yourself.
- Living Will - To put it not-so-delicately, this generally is the document used to state your wishes with respect to whether and when you want "the plug" pulled.
- Mental Health Care Power of Attorney - Who makes care decisions if you are mentally incapacitated.
- Health Care Directive - In Arizona - as with many other states - you can put your Living Will, Health Care Power of Attorney, and Mental Health Care Power of Attorney on file with the State. The State then provides a wallet card. Assuming no other options are available and you are unable to communicate your wishes, the hospital may access your information from the State registry.
- Final Disposition Instructions - This is merely a written set of instructions respecting whether you wish to be buried or cremated, where you want to be buried, how you want your ashes cared for, and so on..
Empty-Nest/Retirement:
Life Situation:
Growing assets. Married/Re-Married. Children. Grandchildren. Mortal.
Estate Planning Considerations:
- Trust (Revocable or Irrevocable - again, the choice depends on how trust assets are to be distributed to beneficiaries, the size of the estate, and other considerations). Being more firmly established, it is easier to see what your estate involves, and also to determine exactly where and how you want your estate distributed. The most appropriate option should be discussed with your estate planning and tax attorney to ensure the best outcome.
- Pour-over Will - This type of will has the effect of moving property that does not belong to the Trust before your death into the Trust after your death. A Pour-Over Will will also include provisions for guardianship of minor children and other important elements. This Will will need to be probated, but may be simplified greatly if assets that would otherwise be "probate assets" are properly transferred to your Trust.
- Durable Power of Attorney - This is a Power of Attorney that gives very broad powers to the person you elect. Generally, this gives the person to step into your shoes and act - in a legal sense - as you in virtually every situation. For example, to manage your personal finances, to manage a business, to buy and sell property, etc. Generally, because of the amount of power given, I recommended using a "springing" power of attorney. "Springing," means that it only becomes effective after a certain event - usually if you become mentally or physically incapacitated and can't do things for yourself.
- Health Care Power of Attorney - Who makes Health Care decisions for you if you are unable to decide for yourself.
- Living Will - To put it not-so-delicately, this determines whether and when you want the plug pulled if you are on life support.
- Mental Health Care Power of Attorney - Who makes care decisions if you are mentally incapacitated.
- Health Care Directive - In Arizona - as with many other states - you can put your Living Will, Health Care Power of Attorney, and Mental Health Care Power of Attorney on file with the State. The State then provides a wallet card. Assuming no other options are available and you are unable to communicate your wishes, the hospital may access your information from the State registry.
- Final Disposition Instructions - this is merely a written set of instructions respecting whether you wish to be buried or cremated, where you want to be buried, how you want your ashes cared for, and so on.
DISCLAIMER: This website is for Informational Purposes only. The information provided is not comprehensive, does not constitute legal advice, and does not create an attorney-client relationship. If you need legal advice, please contact an attorney in your local community or State.