10 Important Questions You Should Ask

29 Apr Estate planning checklist: 10 important questions to ask

Posted on 21:34h
in Estate Planning
by Phelps LaClair Law

Estate Planning can seem overwhelming, but that doesn’t mean it has to be. Asking the right questions will help you protect your wishes, whether you are just starting out or reviewing your current plan. Ten Essential Estate Planning Questions

1. What Assets Do I Own, and How Are They Titled?

The first step in creating your estate plan is listing the assets you own, such as:

Homes and real estate

• Checking and savings accounts
• Retirement plans and investments
• Vehicles
• Business interests
• Personal property (art, jewelry, collectibles, heirlooms. )
• Digital assets (cryptocurrency, NFTs, social media accounts, etc. As an example:
• Is the property

held jointly

• ?Are there beneficiary designations on any of your accounts?Do you hold any assets in a trust?
• How do you title your assets when listing them out. For example:
• Is the property

held jointly

?

Are there beneficiary designations on any of your accounts?

• Do you hold any assets in a trust?
• Proper titling can mean the difference between a smooth transfer of assets and a lengthy court process. In Arizona, property held jointly will pass to the surviving owner. If you are placing assets in a Trust, you will need to transfer ownership. You’ll also want to ensure that you have named the correct beneficiary for any accounts that require one, such as your life insurance policy and retirement fund. Your legal will allows you to:
• Name beneficiaries for your assets

Designate guardians for minor childrenAppoint an executor to settle your affairsHowever, wills are

subject to probate–a court-supervised process that can take months and become public record. Your legal will allows you to:Name beneficiaries for your assets

• Designate guardians for minor children
• Appoint an executor to settle your affairs
• However, wills are

subject to probate

–a court-supervised process that can take months and that will become public record. By setting up a

living Trust, you can:Avoid Probate

• Keep your financial matters private
• Name the successor trustee to manage assets
• 3. Who Will Care for My Children or Dependents?
• If you have young children or dependents with special needs, naming a legal guardian in your will is one of the most important decisions you can make.

Before naming a guardian, consider:

Who shares your values and has a similar parenting style?

Who do you trust that has a strong personal relationship with your children?Is this person financially stable and emotionally ready to take on the responsibility?Who would you name as an alternate guardian in case your first choice is unavailable?

• You may also want to create a trust and appoint a trustee who can manage the assets you leave to your children until they reach adulthood.
• 4. You should document your healthcare wishes. Your loved ones shouldn’t be left guessing what you want in an emergency. In Arizona, you may set up advanced directives such as:
• A-living trust which outlines your preferences regarding life-sustaining treatments, feeding tubes, ventilators etc.

A-

medical powers of attorney

which appoints a trusted person to make healthcare decisions for you if you are unable.

A-

• Do not Resusc These documents can provide peace of mind and ease the burden on those who will have to make difficult decisions for you. Who Do I Want Making Decisions on My Behalf If I Can’t?Accidents and illnesses can happen at any time. If you were suddenly unable to manage your affairs due to incapacity, who would you trust to step in?
• In Arizona, two critical legal tools can help you answer this question:Durable Financial Power of Attorney

–Authorizes someone you trust to handle your finances if you’re unable to.Medical Power of Attorney–Appoints someone you trust to make healthcare decisions for you when you can’t, such as life support, surgery, etc.

Without a

power of attorney in place, your family may have to go to court to obtain guardianship or conservatorship–a costly, time-consuming process that can be avoided with proactive planning.

6. Are My Beneficiary Designations Up to Date?

• Beneficiary designations
• override your will or trust, so it’s vital that they are accurate and aligned with your current wishes.
• Make sure to check the designations on these accounts:
• Life insurance

IRAs and 401(k)s

Payable-on-death (POD) deeds

Transfer-on-death (TOD) bank accountsDon’t forget to update your designations after major life events, such as marriage, divorce, the birth/adoption of a child, or the death of a beneficiary. It’s a good idea also to name alternate beneficiaries in case the primary beneficiary declines or cannot inherit. What Are My End-of-Life Preferences?This is not an easy topic to think about, but planning for your

funeral arrangements

• can make a world of difference for your loved ones after you’re gone.
• Here are some questions to consider:
• Do I want burial or cremation?

Are there any specific religious or cultural traditions I want followed?

Have I prearranged or prepaid for services?

You can include your preferences in a letter of instruction to guide your family when the time comes. It’s important to put these wishes into a separate document because wills must go through probate. This can take a very long time. Give a copy of your will to the executor so that they can ensure your wishes are carried out.8. Have I Considered Tax Implications?While the state of Arizona does not impose an estate tax, federal

estate taxes

• still apply to large estates.
• Other tax considerations include:
• Income taxes on inherited retirement accounts

Capital gains taxes on appreciated property

Gift taxes on lifetime transfers over certain thresholds

Working with an estate planning attorney and a tax professional can help you reduce or avoid these burdens. They can provide you with advice on estate planning strategies such as:

9. Have I Planned for My Digital Assets and Online Accounts?It’s important to protect your digital assets as well. Arizona law allows for someone to be authorized to manage your digital assets. However, you must clearly grant this access in your will.

• Digital assets
• can include:
• Email and social media accounts, along with their login credentials
• Online banking and investment platforms
• Domain names and websites

Cryptocurrency wallets and NFTsCloud storage and digital photo librariesConsider creating a secure list of logins or using a password manager, and specify your wishes regarding what should be deleted, preserved, or passed on. You can also protect digital assets by using a

digital Vault

. When was the last time I reviewed my plan?Your will should change as you do. Major events that signal it’s time to update your estate plan

• include:
• Marriage or divorce
• Birth or adoption
• Changes in financial status
• Moving to another state

The death or incapacity of a named agent, trustee, or beneficiary

Even without a major life event, it’s a good idea to review your estate plan at least once every three years. You can then be sure that your estate plan reflects your current wishes, and that your documents are valid. Get Answers to All Your Estate Planning Question

The Phelps LaClair legal team has been guiding Arizonan families through the estate-planning process for more than 40 years. We’ll be there for you every step of your journey, from first-time estate plans to 3-year updates and trust administration. We’re here for you in Mesa, Chandler or Tucson. Contact us today at (

) to schedule a complimentary consultation. Images used under creative commons license – commercial use

(4/29/2025).

Photo taken by Pixabay and posted on Pexels

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