Why Every Unmarried Person Should Have a Will

Wills offer a number of benefits for protecting one’s interests after his or her passing. In addition to appointing a personal representative, assigning custody/guardianship for minor children, setting up testamentary trusts, and more, one of the most important benefits is deciding the distribution of assets upon one’s death. Whether you’re in a life-long relationship or a single person, if you are unmarried you should have a will.

Unmarried couples often get the short end of the stick when it comes to inheritance rights. In Arizona, a community property state, spouses are entitled certain rights upon the deceased spouse’s death. Unmarried parties, however, are not automatically granted the ability to inherit their partners’ assets. By law, upon a person’s passing, his or her next of kin has the right to inherit any property left in the deceased party’s estate unless otherwise stated in a properly executed will. Therefore, even if a couple has been together for decades, the partner will not inherit property from the deceased party’s estate unless expressly written in a will. In fact, an estranged family member could inherit a person’s estate instead of a life-long partner under intestacy laws.

To protect one’s life partner, whether the couple is an unmarried heterosexual couple, a homosexual couple, life-long friends, or virtually any other scenario, a will must be formally executed prior to passing. In our country, even if a gay couple is married in a state that currently recognizes gay marriages, if that couple moves to Arizona one’s spouse is not necessarily granted the same rights of inheritance as he or she would receive in the state that recognizes the marriage. For this reason, if a gay couple moves to Arizona, and the parties wish to leave all assets to each other, it is imperative that those parties execute a will outlining their wishes.

Even single people not involved in a long-term relationship should execute a will. If a person does not execute a will, the next of kin has the right to inherit under state law. If the deceased person has a child or children, the estate would pass to the children. Absent a will, however, the guardian or custodial parent of those children may be responsible for the assets left to the children. Our simple wills allow you to set up a testamentary trust to make sure the minor child does not receive a disbursement of assets (except for education or other necessities) until the age of your choosing. You may also appoint a trustee which could be anyone from a trusted friend to a close family member who would act in the children’s best interests, to manage those funds.

If you don’t have children, you should execute a will to allow your estate to pass to a family member, friend(s), or charity. If, upon your passing, your next-of-kin are unable to be located, your estate could be escheated to the state. If you assets are escheated to the state, the state basically collects your assets and keeps it for its own spending. By preparing a will, you can decide instead to make sure your hard-earned assets pass to a loved one or a charity of your choosing.

If you have questions about why you need a will, or would like to set up a consultation to prepare a will or any other estate planning documents, don’t hesitate to call The Carroll Law Firm at (623)551-9366.

Why You May Wish to Change or Update your Estate Planning Documents

At the Carroll Law Firm, we help clients plan their estate by preparing documents including Simple Wills, Durable General Powers of Attorney (AKA Business Powers of Attorney), Healthcare Power of Attorney, Living Wills, Beneficiary Deeds and even Trusts.

Every time you move to a new state, you should prepare a new will. Each state has different laws for probating an estate, and if you do not have a new will prepared, you could leave your beneficiaries liable for problems that you could have helped them avoid such as inheritance taxes, real estate complications and more. The only way to ensure that your true wishes will be carried out upon death is to have a will prepared in accordance with state laws of your primary residence.

In addition to a new will, you also should make sure your Trust adheres to local laws. If you already have a trust, an attorney can prepare an amendment to that trust to make sure that the trust is interpreted according to Arizona law.

Credit Card Debt Collection upon the Death of a Loved One

Some people have a “zero balance” on their credit cards.  Many people, on the other hand, carry at least some debt on their credit cards and pay the monthly charges which may exist at the end of each monthly cycle.  Whether you are a person in the former category or a person in the latter category, everyone should know what happens to existing credit card debt when someone passes away as credit card companies may attempt to collect on the debt of a loved one who has recently passed away.

Generally, credit card debt does not go away when a person dies.  Family members, however, are most often not directly responsible for paying an outstanding balance that may exist.  Instead, the remaining debt is paid out of the decedent’s estate.  Depending on the amount of outstanding debt, it may be helpful to consider how credit card debt will be handled when creating an estate plan.

Beneficiary Deed – An Inexpensive Way to Avoid Probate

A Beneficiary Deed is an easy, convenient way to avoid probate of what is normally your largest single asset, your home. What the Beneficiary Deed does is to automatically transfer the real estate to your beneficiary upon your death, without having to go through probate to transfer the property. Transferring the real estate in this manner may allow the remaining estate to be resolved using a small estate affidavit as opposed to more formal probate proceedings. Arizona is one of only twelve states that allow the utilization of a Beneficiary Deed to transfer real estate upon the death of the Grantor. Beneficiary Deeds can be revoked or amended at any time, and the beneficiary has no rights or interest in the property until the Grantor passes.

Beneficiary Deeds are also especially useful when you want to leave your home to a child from a prior marriage or someone other than a family member. If there is any animosity between the beneficiary and the Personal Representative of your estate, the Representative may otherwise delay the transfer of that asset to your intended beneficiary. A Beneficiary Deed effectively takes your property out of your probate estate and allows the beneficiary to inherit the asset directly and immediately. Unlike a Trust, which can cost thousands of dollars, a Beneficiary Deed can be prepared for a fraction of the cost, thus making it a desirable Probate alternative.

If you think a Beneficiary Deed might be the best option for your estate, feel free to come speak with our attorneys.

Resolution: Be Prepared

In today’s world, what age is considered “elderly’?  A person’s real age continues to climb as people live longer, life styles have more options, and new opportunities for both work and recreation come along.  The stereotype of the elderly with white hair, staying at home, becoming easily confused, and having trouble getting around may not fit any more.  However, regardless of age, anyone can become sick, be injured, or die unexpectedly.

This raises the question of what a person –of any age-needs to do to prepare for these possible events?  We should be asking ourselves what legal documents are necessary.  Do I need to have a lawyer to prepare these documents or can I do it myself?  With a slow economy, what are the costs for doing all of this?  Can a document really protect my assets?  And what is all of this talk about Long Term Care?

We make New Year’s resolutions to exercise more or to make better food choices.  We decide to get our house “in order” physically, but what about getting our life in order for our future and that of our family. This year make your resolution to have the proper documents prepared to protect yourself, your assets, and your loved ones.  This means that you will want to learn the difference between a will and a trust.  Plus while you are mentally competent, you will want to state your instructions for the way you want your estate to be handled-not the courts!  Also you do need to think about appointing someone to have Power of Attorney for both your health care and your financial decisions.

The Carroll Law Firm is skilled in helping people plan for their future.  Thinking about all of the things that are really important in your life, what is more crucial than taking the time to plan for your wishes to be put into legal binding documents?  Taking care of your body and becoming fit this year is a good goal; but an even better one is to make an appointment now to discuss with a professional your options for planning for your future not only for yourself but for your family.  This can ensure you a Happy New Year and happy years to come.