Estate planning? This might sound like something only the wealthy need to worry about. But in reality, it’s something everyone should consider. Planning ahead ensures that your wishes are honored; your loved ones are taken care of; and you can avoid a lot of legal headaches in the future. The great thing is, you don’t always need to hire a lawyer to get started. In Arizona, DIY estate planning is legally permissible. Here’s a guide to create your own estate planning documents, including wills and trusts:

Why You Need an Estate Plan (Even If You’re Not Rich)

When people hear the term “estate,” they often think of mansions, luxury cars, and a lot of money. But in legal terms, your estate is simply everything you own. It can be your house, car, savings account, retirement funds, and even your personal belongings. So, whether you own a modest home in Phoenix or have a small savings account, those assets need to be properly managed after you’re gone.

Without an estate plan, Arizona’s laws will determine who gets your assets. That process can be lengthy, expensive, and stressful for your family. According to the Arizona Revised Statutes (ARS § 14-2102):

• If you pass away without a will, the state follows a set of rules to decide how your assets are divided among your relatives.
• If you’re married, your spouse usually inherits most of your estate; but it can get complicated if you have children from a previous relationship.

What is Included in an Estate Plan?

An estate plan covers more than just deciding who gets your stuff after you die. Here’s a quick breakdown of the key documents you might need:

Last Will and Testament

This is the most basic part of an estate plan. It outlines how you want your assets distributed and who will be the guardian of any minor children. In Arizona, your will must be in writing; signed by you; and witnessed by at least two people.

Living Will

This document spells out your wishes for medical care if you become unable to communicate, like if you’re in a coma or have a terminal illness. It can include directions on life support, resuscitation, and other end-of-life care decisions.

Durable Power of Attorney

This allows you to name someone to handle your financial matters if you become incapacitated. In Arizona, a power of attorney remains valid even if you lose mental capacity, as long as it’s labeled “durable” (ARS § 14-5501).

Healthcare Power of Attorney

Similar to a durable power of attorney, but specifically for medical decisions. This gives someone you trust the authority to make healthcare decisions for you if you’re unable to do so.

Revocable Living Trust

A trust isn’t necessary for everyone, but it can be useful if you want to avoid probate. Probate is the court-supervised process of distributing your estate, which can take months and cost a lot of money. With a living trust, your assets can be transferred to your beneficiaries without going through probate; as long as they’re properly titled in the trust’s name.

Steps to DIY Estate Planning in Arizona

Are you ready to take control of your estate planning but don’t want to spend thousands of dollars on legal fees? You can handle much of it yourself using this step-by-step guide:

1. Make an Inventory of Your Assets

Start by listing all your assets: real estate, vehicles, bank accounts, retirement accounts, and valuable personal items like jewelry or artwork. Don’t forget about digital assets, like online bank accounts or social media profiles. Having a clear picture of what you own will make it easier to decide how to distribute your estate.

2. Choose Your Beneficiaries

Decide who should receive your assets when you pass away. This can be family members, friends, or even charities. In Arizona, you can also use a “Transfer on Death” designation on certain accounts. This allows those assets to pass directly to your chosen beneficiaries without going through probate (ARS § 14-6201).

3. Draft a Will

Writing a will doesn’t have to be complicated. You can find templates online, but make sure they’re specific to Arizona law. Remember to have two witnesses sign your will, as Arizona requires. Your witnesses should not be people who stand to inherit anything from your will, to avoid conflicts of interest.

4. Create Powers of Attorney

Download the official forms from the Arizona Secretary of State’s website to create both a durable and healthcare power of attorney. Fill them out, and have them notarized. These documents are required if you become incapacitated and need someone to manage your affairs.

5. Consider a Living Trust

A living trust can be a bit more complex, but there are online resources and books that walk you through the process. The main benefit of a trust is that it keeps your assets out of probate court, which can save your heirs a lot of time and money. So, if you own property in multiple states or have a larger estate, a trust can be especially helpful.

6. Store Your Documents Safely

Once you’ve completed all your documents, keep them in a safe place. For example, store them in a fireproof safe or a bank safety deposit box. Let your loved ones know where these documents are stored so they can access them when needed. It’s also wise to provide copies to your executor and the people you’ve named as your agents in the powers of attorney.

When to Hire a Lawyer instead of DIY Estate Planning

Sure, you can choose DIY estate planning, but there are situations where it is better to hire an attorney. If you have a complicated family situation (like children from multiple marriages), own a business, or have a high-value estate; it’s best to consult with an experienced estate planning attorney in Arizona. They can help you understand complex legal rules and ensure your estate plan is perfectly done. 

In addition, if you decide to set up a trust, have a lawyer review the paperwork to make sure that everything is set up correctly. Mistakes in trust documents can lead to unintended consequences like assets accidentally going through probate.

Estate planning may not be the most exciting thing on your to-do list, but it’s one of the most important. Take the time to set up your plan as early as now. It will save your family a lot of stress and confusion should be inevitable happen in the future. And remember, even if you start small by creating a simple will, that’s better than having nothing at all.