Although most people know the basic concept of a Will, there are two important things about Wills that all people should understand. First is what a Will does and second is who should have one.

A Will is a person’s statement regarding what he wants done with his assets and debts after death. A Will is entered into probate when a person dies. Probate is the section of the court system which deals with the administration of a person’s estate after they have died. During the proceedings, your named personal representative will be given the power to pay your debts and distribute your assets according to your wishes. If you have debts, assets, are married or have children, you need to have a Will.

A Will allows you to name your beneficiaries and a personal representative to administer your estate. You can predetermine which assets you would like sold first to satisfy debts so that sentimental and precious items can be given to family and friends. A Will also gives you the opportunity to name guardians and conservators for your children and include Testamentary Trusts in order to plan for your children’s health, education, and support after your death.

Without a proper Will, the State of Arizona will decide who inherits your assets and who gets custody of your children.

Another commonly talked about estate planning document is the Living Trust. A Living Trust is a tool which allows property to pass to beneficiaries after death without passing through probate. A Living Trust may be an appropriate estate planning tool for you if:

1. You have assets over Two Million Dollars.
2. You own real property in more than one State.
3. You are concerned about future incapacity for yourself or a spouse.
4. You have a disabled child or a child with poor money management skills.
5. You have a complex family structure (ie. children from previous marriages.)

A Living Trust can be used to keep the names of beneficiaries and the nature and value of property held in trust out of the public eye. If you are considering creating a Living Trust there are limitations that you need to understand. A Living Trust will not shield your assets from creditors. Asset protection from creditors can instead be accomplished through the formation of Family Limited Partnerships and Limited Liability Companies in specific circumstances.

A Living Trust will not help you avoid all estate taxes and it may not provide any tax advantages that are not available to a person using a will in order to accomplish the transfer of property upon death.

Without a Will or Living Trust the distribution of your estate will be left up to the State of Arizona. Your assets will be split up according to the Arizona intestate succession laws and not according to your specific wishes. In some instances if no one is qualified to inherit your estate under Arizona’s rules, the State itself will take your assets.