McDonald WarnerPhoenix Estate Planning Attorney | Wills | Probate | Trusts2023-07-03T01:22:55Zhttps://www.probateaz.net/feed/atom/WordPress/wp-content/uploads/sites/1302131/2020/06/apple-touch-icon-75x75.pngOn Behalf of McDonald Warnerhttps://www.probateaz.net/?p=465142022-02-14T22:44:28Z2022-02-14T22:44:28ZFiling of probate
According to FindLaw, an individual must first file for an informal probate proceeding with the court. Only certain people can do this, and some include the spouse of the decedent, an adult child, an heir, a sibling or the person nominated in the will as the personal representative.
Role of the personal representative
The court must approve the person named as the personal representative, and if the will does not name one, the court appoints this individual. According to the Superior Court of Arizona in Maricopa County, the personal representative plays a large role in the estate's administration. Some of the duties include:
Locate, gather, inventory, valuate and protect the decedent's assets
Inform all heirs
Give notice to creditors and pay the estate's debts
Pay necessary expenses of the estate
File tax returns and pay all taxes due
Distribute assets to heirs after paying all expenses and debts
The personal representative has a fiduciary duty to follow the instructions in the will. The court determines the amount of compensation for the job performed by this individual, and factors considered include out-of-pocket expenses, liability assumed, time spent, experience and time spent away from regular employment.]]>On Behalf of McDonald Warnerhttps://www.probateaz.net/?p=465112022-02-04T18:43:56Z2022-02-04T18:43:56Zcontrol a conservator has.
Power
If the court appoints you the conservator of a minor, then you will also have the duties of a guardian unless the court specifically appoints one. For adults, you have similar power to a trustee in the management of the person's assets and other finances.
Duties
You have the right to make day-to-day spending decisions. You can also invest money, make purchases, borrow and carry out other financial decisions as you see fit. You have full control over the financial aspects of the person's life, but you must make decisions in the best interest of the person. You want to make informed and well-thought-out decisions.
You also have the responsibility to keep the person out of bad debt and to pay debts, including taxes. You must manage the estate of the person properly.
In everything you do as a conservator, you need to ensure that you are making sound decisions. You have to follow the law and any orders from the court as well. It is essential that you treat this like a job where you are careful and calculating in the management of the finances.
Being a conservator is a serious responsibility. The court can remove your powers at any time if you do not act properly. You could also end up with problems if you misuse your power.]]>On Behalf of McDonald Warnerhttps://www.probateaz.net/?p=465082022-01-18T17:18:21Z2022-01-18T17:18:21Z1. Choose a guardian
The first thing you should consider when estate planning as a new parent is who will take care of your children if both you and the other parent die. Setting aside money is important, but less so than knowing where your child will live and who will be responsible for meeting his or her basic needs. Before you write a will naming a guardian for your children, make sure you discuss it with the person you have chosen and ask his or her permission. Becoming a guardian is a big responsibility, and the person you choose may not feel up to it.
2. Update beneficiary designations
While you have a responsibility to provide for your child in the event of your death, remember that minors lack the legal status to control property. According to Kiplinger, you have to either create a trust naming the child as a beneficiary or appoint someone who can control assets on your child's behalf until he or she comes of age. This person can be the same as your child's guardian but does not have to be.
3. Establish your own "living documents"
Living documents are things like advance directives that describe what kind of medical treatments you want to receive if you can no longer make health care decisions on your own. If you were to become incapacitated when your children were still minors, they would not be able to make these decisions on your behalf. Even if your children were in their late teens or early 20s, they may not have the maturity to handle the responsibility and emotional strain of making health care decisions for a parent.
Your responsibility to provide for your child does not end with your death or incapacitation. Because you never know what could happen, or when, you should make provisions for the future as soon as possible.]]>On Behalf of McDonald Warnerhttps://www.probateaz.net/?p=465052022-01-05T17:26:51Z2022-01-05T17:26:51ZSpecific duties
FindLaw explains that your specific duties as a personal representative will depend on the size and complexity of the deceased’s estate. In general, however, you can expect to do the following:
Find the deceased’s original will, file it with the probate court and open the probate estate
Notify all of his or her heirs and creditors of the death and the opening of the probate estate
Collect and inventory all of his or her assets
Cancel all of his or her open credit cards and bank accounts
Set up an estate bank account
Pay all legitimate claims and taxes owing
You will also manage the deceased’s assets during the probate period. This may include selling some of the assets if the estate has insufficient liquid funds with which to pay bills and taxes.
Final accounting
Once you have paid all the bills and other liabilities of the estate, you will need to construct a final accounting of everything that came into or went out of the estate during probate and file it with the probate court. When the probate judge approves your final accounting, he or she will permit you to close the estate.
At this point, your final duty consists of distributing the remaining estate assets to the deceased’s heirs according to the provisions of his or her will.]]>On Behalf of McDonald Warnerhttps://www.probateaz.net/?p=465022021-12-10T20:17:32Z2021-12-10T20:17:32Zthe probate court reviews it for validity. Your chosen personal representative then distributes your property based on your will's instructions.
If you die without a will, the probate court must then verify your properties. A judge also appoints a personal representative for your estate. After confirming ownership, the representative transfers your assets to your rightful heirs.
Who could receive my assets if I die without a will?
If you die without a will, your surviving spouse automatically receives your property. Under Arizona's community property laws, your spouse has a right to inherit all your assets.
Children that you had with your surviving spouse, however, may not receive an inheritance. If you had children from a prior marriage, your surviving spouse only receives half of your assets. Your children from your former spouse receive the other half.
Who receives my property if I do not have a surviving spouse?
Without a surviving spouse, your children receive your assets. Children, however, may have different opinions on which assets they should receive. A probate court judge resolves any disputes.
If you die without a surviving spouse and children, your parents inherit your entire estate. If the probate court cannot confirm your living parents, your surviving siblings inherit your property. Siblings may divide your assets equally in probate court. They may also rely on a judge’s decision in case of disagreements.
To avoid disputes, you could add heirs as beneficiaries to your financial accounts. You may also create a will or trust to provide instructions on how to transfer your assets.]]>On Behalf of McDonald Warnerhttps://www.probateaz.net/?p=464992021-11-26T21:33:26Z2021-11-26T21:33:26ZMajor life changes
Fidelity examines the importance of keeping your estate plan up to date with your current life circumstances. Your estate plan only serves a purpose if it accurately reflects your current life situation. For example, say that in your will you left something to a spouse that you later divorce. Chances are, you will not want to leave them in your will, but if you do not remove them, they may still have a claim to your assets.
Thus, it is most beneficial to review your estate plan any time you undergo a major life change. This can include changes in beneficiaries, in assets or in your own personal location. Changes in beneficiaries may include the death of a loved one, a divorce, an estrangement, a marriage or re-marriage, an adoption, or a birth.
Alterations in financial status
Changes in assets will include anything that either negatively or positively impacts your assets to a notable degree. This can include filing for bankruptcy due to debt, or coming into a large inheritance after the death of a family member.
Changes in location relate to where you physically live. Not every state has the same laws for estate plans, and you want to ensure that yours is valid under the law of the state you currently live in.]]>On Behalf of McDonald Warnerhttps://www.probateaz.net/?p=464962021-11-16T16:24:05Z2021-11-16T16:24:05Zlower the chances of inheritance conflicts arising by doing the following.
Leave all children equal amounts
You may have concerns about one or more of your children blowing through what you leave behind. However, you might want to reconsider leaving some children more than others, as this is a frequent cause of conflict. If you have a child you fear might waste what you leave him or her, consider leaving those individual assets in a trust with certain conditions attached to it.
Give your kids an idea of your plans
You may also be able to cut the chances of an inheritance conflict arising between or among your kids by sitting them down while you are still able and giving them an idea of what they stand to inherit. You do not have to give exact dollar amounts, as you may have no idea how much of your estate might remain by the time you die. However, giving your children a sense of what they might get may help bring them down to earth and eliminate any grandiose ideas about a major payday.
Inheritance battles may result in lifelong damage to familial relationships. For this reason, taking steps to reduce the chances of them is often an important part of estate planning.]]>On Behalf of McDonald Warnerhttps://www.probateaz.net/?p=464932021-10-30T16:42:18Z2021-10-30T16:42:18ZUnderstand the jargon behind your plan
Forbes discusses many of the mistakes that lead to messy estate plans. First of all, misunderstanding the point of an estate plan will lead to other mistakes later down the line. You should work together with an estate planning attorney from the start to help you avoid misinterpreting text, filling out documents incorrectly, or missing important forms entirely.
Next, do not rely on a will alone. A good estate plan is made up of several moving parts, including but not limited to your will, trust, power of attorney, healthcare proxy and more. If you only have a will, you likely miss out on securing important aspects of your plan and may create hang-ups for your loved ones.
Keep your estate organized
Do not leave behind a scattered estate, either. Get your affairs in order. This includes your physical assets - vacation homes, property, cars, etc. - as well as your intangible assets such as retirement funds and stocks. The more scattered and unorganized your assets are, the harder your loved ones will have to work to get everything in proper working order later.
Your loved ones will already have a lot on their plate when handling your death. Making sure your estate plan is organized and ready to handle will help them greatly.]]>On Behalf of McDonald Warnerhttps://www.probateaz.net/?p=464902021-10-14T21:06:01Z2021-10-14T21:06:01Zvulnerable adults face risks of abuse, neglect and financial exploitation.
Abuse may include physical or verbal harm. Signs of physical mistreatment such as bruises may require a medical exam to uncover the source. Neglected adults may appear unusually agitated, irritable or shy around relatives.
Symptoms of financial exploitation may appear
Financial abuse symptoms often go unnoticed. They may not attract attention until a vulnerable adult experiences a significant loss of money. Missing funds may require looking into spending patterns.
Signs of exploitation may include a stranger or close relative isolating an adult from loved ones. The vulnerable individual may then receive coercive threats to withdraw a large sum of money from a bank account. The amount, however, may reflect more than how much an adult needs to spend on necessary living expenses.
A power of attorney may curtail harmful actions
A power of attorney authorizes a named agent to make financial or health care decisions on behalf of a vulnerable adult. As noted by U.S. News, a POA provides a trusted agent with authorization to legally access online financial accounts. With the ability to take control of a bank account electronically, the named agent may monitor transactions online. The individual may also set up automatic payments and arrange for alerts to track spending.
A POA generally authorizes a named agent to sign checks and paperwork on behalf of an aging adult who needs assistance. Recognizing the signs of financial exploitation may help determine if an adult faces a risk of harm.]]>On Behalf of McDonald Warnerhttps://www.probateaz.net/?p=464822021-09-28T19:16:43Z2021-09-28T19:16:43Zspecial needs trust is a common estate planning tool used by parents of children with disabilities.
How special needs trusts work
There are two main types of special needs trusts: the first-party special needs trust and the third-party special needs trust. The main differences between the two types involve how to fund them and what happens to the funds inside when the beneficiary dies. However, most people looking to protect government assistance eligibility do so through a third-party special needs trust.
Why special needs trusts protect public benefit eligibility
Once you enter assets into such a trust, they become the legal property of a trustee, rather than your child with a disability. Thus, they do not come into play during means-testing for Medicaid or Supplemental Security Income. They also do not impact your child’s ability to participate in the Arizona Long-Term Care System, which factors in once your child with a disability reaches a certain age.
Drafting a special needs trust may prove complex. There may also be tax implications associated with doing so. It is important that whoever drafts your special needs trust does everything right if you wish to use it to protect your child’s public benefits eligibility.]]>