Practice Areas and Legal Definitions
Wills:
A Will is a written instrument containing directions on how the assets and property of the testator (individual creating the Will) shall be divided upon his or her death. Wills can also contain instructions regarding the care of minor children, gifts to charity and formation of posthumous trusts. In order for a Will to be legally valid, the testator must sign the Will in the presence of two witnesses and he or she must be mentally competent and not acting under duress or under the controlling influence of another.
Trusts:
Trusts are estate-planning tools that can replace or supplement Wills and can also help manage property during life. A trust manages the distribution of a person's property by transferring its benefits and obligations to different people. Maintaining assets in a Trust often makes it easier to minimize taxes and leave a larger inheritance. A Trust is also a way to provide a steady income to the Beneficiary over time (as opposed to distribution in a lump sum), thus reducing the Beneficiary's tax burden, allowing the Trust to grow through investment, and keeping assets free from creditors of the Trust beneficiary. Trusts can also be established for the benefit of charitable organizations.
Probate:
Probate is the legal process of transferring property following a person's death. If a person dies "Testate" (with a Will), or "Intestate" (without a Will), a probate is required to be opened and monitored by the appropriate local court. Once a probate is opened, it also becomes a matter of public information. Although probate customs and laws have changed over time, the purpose has remained much the same: to make sure that your intentions regarding the transfer of your property at the time of your death are followed. Your property is collected, inventoried and appraised, certain debts are paid from the estate and the property is distributed according to your will after debts and taxes are paid. However, most probates can be costly, time-consuming, and complicated.
Estate Planning:
Good estate planning involves more than just a simple Will. It minimizes potential taxes and fees (including Federal and State gift and estate taxes), and sets up contingency planning to make sure wishes regarding health care treatment are followed before and after death. A good estate plan also coordinates what happens to a home, investments, business, life insurance, employee benefits (such as a 401K plan) and other property in the event of disability or death.
Powers of Attorney:
Powers of Attorney are governed by the law of agency, a branch of common law concerned with the delegation of power from one person (the principal) to another (attorney-in-fact or agent). When a person becomes incapacitated, the government or the court often steps in and appoints someone to represent and make legal decisions for the incapacitated person. One of the ways to avoid government or court intervention and the appointment of a stranger to act as your guardian, is to use a Power of Attorney. A Power of Attorney is a written document that can be limited in scope, or it can allow one person to give another the full power and authority to represent him or her. There are two types of Power of Attorneys; one covering assets and one covering health care decisions.
If you or someone you know in Phoenix, Arizona, or surrounding cities and counties, needs the assistance of an experienced estate planning lawyer, call Attorney William Graves today at 866-635-9846, or use the contact form provided on this site to begin your consultation with a trusted Arizona estate planning attorney.