A living will (also called an advance healthcare directive) specifies your wishes for medical treatment if you become unable to communicate, such as whether you want life support in terminal situations. In Arizona, this is typically combined with a healthcare power of attorney, which designates someone to make medical decisions on your behalf. Every adult should have these documents regardless of age—medical emergencies can happen anytime. Without them, family members may face agonizing decisions without knowing your wishes, and hospitals may keep you on life support longer than you'd want.

Basic estate planning documents (will, powers of attorney, healthcare directives) from an Arizona attorney typically cost $1,500-$3,000. A comprehensive plan with a living trust usually ranges from $3,000-$6,000 depending on complexity. While this may seem expensive, it's far less than the cost of probate (3-7% of estate value) and potential family disputes. As a financial advisor, we coordinate with estate planning attorneys to ensure your plan integrates with your overall retirement strategy, making the process more efficient and comprehensive.

Retirement accounts (401(k)s, IRAs) and life insurance policies pass directly to named beneficiaries and bypass probate entirely—regardless of what your will says. This is why beneficiary designations are critical. If you haven't updated beneficiaries after major life events (marriage, divorce, births), the wrong person may inherit these assets. Many people forget to update these after divorce and their ex-spouse ends up with their IRA. We help coordinate beneficiary designations with your overall estate plan to ensure everything works together and minimize tax consequences for your heirs.

Trusts provide significant benefits for passing wealth to children or grandchildren. They protect assets from beneficiaries' creditors, divorcing spouses, and poor financial decisions. You can specify when beneficiaries receive distributions (at certain ages or milestones), ensuring they're mature enough to handle the money. Trusts are especially important if beneficiaries have special needs (preserving government benefits), struggle with addiction or financial irresponsibility, or if you want to encourage certain behaviors (completing college, maintaining employment). Trusts also reduce estate taxes for larger estates.

Arizona has no state estate tax, which makes it very favorable for retirees. However, federal estate taxes still apply to estates exceeding $13.61 million per individual ($27.22 million for married couples) as of 2024. Even if you're below these thresholds, proper planning can reduce income taxes on inherited IRAs and capital gains taxes for beneficiaries. Strategies like gifting, charitable donations, and trust structures can minimize the tax burden on your heirs. We coordinate estate planning with tax planning to maximize what your family ultimately receives.