Why Estate Planning is Necessary
Last Updated on August 15, 2022 by Paul Dunn
Importance of Estate Planning
Estate planning is necessary if you want to protect your loved ones from experiencing unnecessary expenses and complications following your death or if you become incapacitated. Many people do not plan their end-of-life choices because they believe it is too complicated and costly to do so. Therefore, let’s address these two reasons.
1) Estate planning eliminates the complications and conflict that can result when individuals become incapacitated or die. Arizona Estate & Trust Law eliminates complications and confusion by helping clients set up an estate plan based on their particular family situation.
2) A comprehensive estate plan prepared by Arizona Estate & Trust Law is not inexpensive. However, not having an estate plan can be very expensive as the following examples will illustrate.
Example One – Envision being unable to manage your financial affairs because of your incompetency or incapacity. Most likely your family would have to hire an attorney to prepare the necessary paperwork for filing with a court to have someone appointed to handle your financial affairs. This could easily cost many thousands of dollars, and your finances would become a matter of public record. These expenses can be avoided with estate planning.
Example Two – Consider what would happen if you were dying or in an irreversible comatose state. You would be unable to tell your medical providers that you did not want to be kept alive by extraordinary measures. Without a Living Will and a Health Care Power of Attorney stating your desire not to be kept alive by artificial means would prove costly. Your ongoing medical bills could deplete your estate. And your family’s having to hire an attorney to force a termination of your treatment would be terribly expensive. Again, these expenses can be avoided with advance planning.
Example Three – Have you ever considered what would happen if you died while your children were still minors? Who would look after their personal needs and financial well-being until they reached adulthood? Would a court have to appoint a guardian and conservator for them? Would the persons appointed by the court be the same persons you would have chosen? A properly drafted Will can avoid these potentially costly problems for considerably less money than would be spent on a contested court proceeding.
Example Four – Do you know who would receive your assets if you died without a Will or trust specifying who is to receive your assets? Arizona inheritance laws provide a “pecking order” for who receives your assets if you die without a Will or trust. Therefore, your assets might be distributed to individuals you would never have chosen to receive your assets.