Recognizing the Specific Needs of High-Net-Worth Individuals 

High-net-worth individuals have investable assets of $1 million or more, excluding their primary residence. This includes small business owners who have built significant companies, wealthy executives with substantial salaries and stock options, and retirees with significant savings. These individuals need to protect complex assets like businesses, real estate, and investments. They require customized strategies to minimize estate taxes and contingency plans if they become incapacitated or disabled.

Estate Planning Strategies for High-Net-Worth Individuals 

Your attorney may suggest several tools when crafting your high-net-worth estate plan, such as:

Establishing a Trust

Various trusts can provide a flexible way to protect your assets and distribute your wealth, both during your lifetime and after your passing.

As a high-net-worth individual, establishing a trust can help reduce the risk of having your assets go through probate. Probate can be a lengthy and costly process, and it risks exposing the details of your estate to the public record. Transferring your assets into a trust can help your family avoid those delays and maintain financial privacy.

Irrevocable trusts can also be useful if you wish to freeze the value of certain assets for estate tax purposes. For example, if you own assets whose value you expect to appreciate significantly, placing them in an irrevocable trust can “lock in” their current value for tax purposes. This strategy may reduce the size of your taxable estate while allowing future appreciation to benefit your heirs.

Certain other types of trusts can also be beneficial during estate planning for high-net-worth individuals. For example, grantor retained annuity trusts (GRATs) allow you (the grantor) to transfer appreciating assets while retaining an annuity for a set term. Other options, such as dynasty trusts, provide additional ways to pass wealth to future generations while minimizing tax obligations and preserving control.

Protecting Assets 

An estate planning attorney can explore all legal ways to help you shield substantial assets from creditors and lawsuits. Because high-net-worth individuals are often at greater risk of claims, structures like limited liability companies, family limited partnerships, and certain irrevocable trusts are high-net-worth estate planning tools that can provide layers of protection and preserve your wealth for your beneficiaries.

Minimizing Taxes Through Charitable Giving

This can be accomplished through philanthropic giving, such as donating to charities through donor-advised funds, using charitable remainder trusts to provide income and tax benefits, and gifting assets to reduce the size of the taxable estate.

Seeking Cash-Value Life Insurance 

Cash-value life insurance is a permanent policy that sets aside a portion of your paid premiums like a tax-deferred savings account. This provides liquidity to pay estate taxes and a guaranteed death benefit for beneficiaries.

Appointing Powers of Attorney, Trustees, and Beneficiaries 

A financial power of attorney authorizes an agent of your choosing to manage your finances if you become incapacitated through an injury or illness. In addition, if you wish to provide for children or students, you might consider incorporating 529 education savings accounts into your estate plan. These accounts grow tax-advantaged and can be designated specifically for your beneficiaries’ educational expenses. 

Getting Fixed Index Annuities

Setting up a fixed index annuity can provide lifetime income and avoid stock market risk. The death benefit passes directly to beneficiaries.

Making smart estate planning decisions can also help avoid probate in Arizona, which can be time-consuming and costly.

Long-Term Considerations for the Wealthy

When creating an estate plan, affluent individuals should carefully consider their potential requirements for long-term care, incapacity, and end-of-life decision-making. Because Arizona is a popular retirement destination, any plan should also factor in financing nursing home or assisted living costs.

An estate planning attorney will address end-of-life decisions with respect and clarity by helping you with:

Financing Nursing Home or Assisted Living Costs

Long-term care costs can be significant, especially in one of Arizona’s private nursing facilities or assisted living communities. As a high-net-worth individual, you may benefit from establishing dedicated funds or purchasing long-term care insurance to preserve your estate while covering these expenses. You can also structure trusts to protect your assets while maintaining your eligibility for certain benefits, which may prevent unexpected care costs from depleting your family wealth. Planning early helps safeguard your financial resources and establish the standard of care you desire.

End-of-Life Decisions

The medical choices you may face at the end of your life should also be part of your estate plan. Living wills, healthcare directives, and healthcare powers of attorney can outline who you want to authorize to make decisions on your behalf if you cannot speak for yourself. These documents provide clarity to your loved ones, reduce the risk of disputes, and make your preferences clear, which makes them easier to honor and prevents your family from having to wonder about your wishes. Your high net worth may also enable you to incorporate private medical care arrangements or resources to cover advanced treatment options as part of your plan.

Tax Planning for High-Net-Worth Families

Tax implications must play a central role in long-term planning for affluent families. Federal estate taxes can significantly reduce the amount that heirs ultimately receive. While Arizona does not impose a state-level estate tax, your estate may still face obligations under federal law. Strategies such as lifetime gifting, charitable contributions, or establishing tax-efficient trusts can help reduce your estate’s tax exposure and maximize the value that gets passed to your beneficiaries. Professionals who understand tax planning for high-net-worth individuals can help you protect your assets and align your financial legacy with your long-term goals.

Contact Pennington Law, PLLC Today for Help With Your Estate Plan 

If you need to create or modify your estate plan to protect your significant assets, you shouldn’t rely on just any law firm. You need a legal team with experience handling estate planning strategies for high-net-worth individuals. The estate planning attorneys at Pennington Law, PLLC, help wealthy individuals create comprehensive retirement strategies. Contact us today for a free consultation.

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A dynasty trust is a type of irrevocable trust structured to last for many generations. Its purpose is to minimize estate and gift tax liabilities that occur when assets pass to beneficiaries. By placing wealth in a dynasty trust, the trust-maker can preserve wealth for children, grandchildren, and succeeding generations and set terms for how relatives and beneficiaries receive their inheritances.

Why Are Dynasty Trusts Considered a Tool for Protecting Family Wealth?

Many families with substantial wealth turn to dynasty trusts to protect those assets for years to come.  Dynasty trusts can preserve generational wealth by minimizing or eliminating various taxes imposed on the transfer of wealth between families, such as gift taxes, estate taxes, and the generation-skipping transfer tax.

Dynasty trusts are also valuable for probate avoidance. Assets placed into a dynasty trust no longer count as estate assets subject to probate in Arizona.  When properly structured, placing assets in a trust also protects family wealth from loss through death, divorce, or creditor claims.

Learning more about the benefits of dynasty trusts can help you determine whether to incorporate one into your estate plan.

How Long Do Dynasty Trusts Last Under Arizona Law?

Although dynasty trusts provide a robust legal solution, there are limitations to consider during estate planning. A dynasty trust can last for several generations when the trust names multiple generations of family members as beneficiaries. In Arizona, a dynasty trust can opt out of the traditional rule against perpetuities, which usually restricts how long a trust may last, allowing such trusts to last for up to 500 years.

What Assets Can Be Placed Into a Dynasty Trust?

An individual or family can place various assets into a dynasty trust. Examples of property commonly put into dynasty trusts include:

• Stocks, bonds, and other investments or securities
• Real estate
• Cash
• Artwork and other collectibles
• Business ownership interests

Who Should Consider Creating a Dynasty Trust in Arizona?

Dynasty trusts may work best for individuals and families with specific estate planning objectives, such as:

• • Passing wealth to younger generations of their family
  • Minimizing or avoiding generation-skipping taxes
  • Reducing estate or gift taxes
  • Providing for the financial needs of multiple generations
• Keeping a sole proprietorship or other business interests in the family

Why Work with an Experienced Arizona Trust & Estate Lawyer

An experienced estate planning lawyer from Pennington Law, PLLC can help you protect your family’s wealth by developing tailored legal strategies to meet your needs. Our legal team can assess whether a dynasty trust best serves your estate planning objectives and, if so, establish a valid, enforceable trust that complies with state and federal laws.

Contact us today for a confidential consultation with a top-rated Arizona trust and estate lawyer.

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Understanding Arizona’s Homestead Exemptions

Arizona’s homestead exemption allows property owners to protect a significant portion of equity in their primary residence, such as a house, condominium, or mobile home (and with the land it occupies), from certain creditors. The amount is adjusted annually for inflation.

The homestead exemption can automatically attach to the cash proceeds from the voluntary or involuntary sale of the property, remaining in effect for up to 18 months or until a person establishes a new homestead with the cash proceeds, whichever occurs first.

An Arizona homeowner may abandon their homestead by making a written declaration of abandonment, transferring the homestead property through a deed or contract for conveyance, or relocating their domicile to another residence.

Revocable Living Trusts and the Homestead Exemption

Although transferring a residence protected by the Arizona homestead exemption typically results in the abandonment of the exemption, state law provides an exception to this rule for a conveyance of the homestead property to a revocable trust. This exception applies when the property owner retains the power to administer and revoke the trust.

Other Trusts and the Homestead Exemption

Property owners may put their primary homes into other types of trusts for various financial and estate planning purposes. Other types of trusts include:

• Irrevocable trusts – You may put your home in an irrevocable trust for tax mitigation or asset protection, as property in an irrevocable trust protects your estate so that creditors cannot reach the asset. However, the irrevocable nature of the trust also means that you cannot recover the property.
• Home Equity Protection Trusts (HEPT) – An HEPT is a specific type of irrevocable trust that can protect your home equity from future unknown creditors. The trust gives you an exclusive right to occupy your home without restriction and may name other parties, such as your children, to receive the proceeds of a sale of the property.
• Medicaid Asset Protection Trust (MAPT) – Individuals and couples may place their homes in a MAPT to fall below the maximum asset thresholds to qualify for Medicaid benefits for long-term care.

Can AZ Homeowners Transfer Property in Trust and Keep the Homestead Exemption?

AZ homestead laws allow homeowners to put their primary residence in a revocable trust as part of their estate plan without jeopardizing their right to a homestead exemption. This rule makes revocable trusts a smart estate planning tool for protecting your home while preserving the exemption. Consulting with an experienced attorney can help you determine whether establishing a revocable trust in Arizona aligns with your financial and estate planning needs and goals.

Talk to Our Arizona Living Trust Attorney

Before placing property in a trust, consult an experienced living trust lawyer to understand how it could affect your eligibility for Arizona’s homestead exemption. Contact Pennington Law, PLLC today for a free consultation to discuss developing an estate plan that provides asset protection and peace of mind in your later years.

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To minimize the risk of legal disputes, it’s important to understand Arizona’s intestacy laws.

What Is Intestate Succession in Arizona?

Intestate succession in Arizona is the legal process the probate court uses to distribute property after someone passes away without a will. The court cannot consider the decedent’s wishes because they didn’t legally document them. Instead, the court divides assets according to an order of priority dictated by Arizona law. In a nutshell, if you don’t make a will, the state makes one for you.

Arizona Intestacy Laws

Arizona intestacy laws outline who can inherit property when someone dies without a will and explain how the estate is distributed among surviving family members.

Under Arizona intestacy laws, only biological and legally recognized relationships — such as spouses, children, and other relatives — are considered when distributing an estate. This means that friends, caregivers, or charitable organizations will not receive anything unless they are specifically named in a valid will.

In addition, not all assets are subject to Arizona’s intestate succession laws. Understanding how these statutes operate can help you make informed decisions that will guide the distribution of your assets after your death.

Which Assets Are Affected by Arizona Intestacy Laws?

Arizona’s intestacy laws only consider the assets titled in your name with no designated beneficiaries. That means intestate succession laws do not apply to all your property. Assets that are affected include:

• Real estate titled in your name alone
• Bank accounts in your name alone
• Vehicles without a transfer-on-death provision

Assets that usually avoid probate include:

• Jointly owned property
• Life insurance policies with a named beneficiary
• Retirement accounts with a valid beneficiary named on the account
• Property transferred into the ownership of a trust

By writing a will, you can direct decisions about your property that the state would otherwise make.

Who Inherits When There Isn’t a Will?

Arizona law establishes the following order of priority for asset distribution in an intestate estate:

• Surviving spouse
• Surviving children

If you are unmarried and have no children, other relatives such as grandparents, siblings, and other descendants can inherit under Arizona’s intestate succession laws. However, these laws can get complex. If you have a blended family, minor children, or specific wishes regarding particular assets, planning ahead is crucial.

Here’s one example of why: Adopted children have the same place in the order of priority as biological children. However, stepchildren cannot inherit unless they were legally adopted by the decedent or named as a beneficiary in their estate plan. Without a will, children you cared for but came from your spouse’s prior relationship will not inherit from your estate. A skilled estate planning attorney can guide you in drafting a will that clearly expresses your intentions for your loved ones.

Talk to Our Arizona Estate Planning Attorney

Thoughtful planning is crucial for protecting your assets and final wishes. At Pennington Law, PLLC, we strive to assist Arizona families in achieving just that. We offer:

• Customized estate plans that aim to bypass probate
• Guidance with probate law if your family member has passed away without a will
• Compassionate care throughout the entire process

Take control of your estate and your legacy today. Contact us today for a free consultation with one of our experienced estate planning lawyers.

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If you’ve recently gotten remarried, here are a few important things to keep in mind as you update — or create — your estate plan to reflect your new marriage.

Open Communication is Key

New spouses should have an open dialogue about their objectives for their estate plans. Clear communication during estate planning can help spouses understand each person’s wishes and work together to develop estate plans that align with those goals.

Update Beneficiary Designations

Couples should review their estate planning documents and update beneficiary designations in their wills, trusts, financial accounts, pension and/or retirement accounts, and life insurance policies to ensure that those documents do not continue to list their former spouse as a beneficiary.

Consider a Prenuptial or Postnuptial Agreement

Spouses who remarry may use prenuptial or postnuptial agreements to preserve the assets and wealth they bring into the marriage and protect them for distribution to each spouse’s children or family members. Should a second marriage fail, a pre- or postnuptial agreement can make the property division process in divorce more straightforward.

Utilize Trusts for Asset Distribution

Trusts can facilitate the efficient distribution of assets under an estate plan. Assets placed in a trust can pass to beneficiaries without going through the probate process for the settlor’s estate. Trusts also offer additional financial and estate planning benefits for spouses entering a second or subsequent marriage, including minimizing estate taxes and providing asset protection in the event of a divorce.

Draft a Comprehensive Estate Plan

Upon remarriage, spouses can best protect their respective interests by drafting comprehensive estate plans that ensure their estate passes according to their preferences. A well-rounded estate plan may include tools such as a will, trusts, guardianships, beneficiary designations, powers of attorney, and advance healthcare directives — each designed to safeguard your assets and protect the best interests of the people you care about. An estate planning lawyer can help you create a plan that recognizes the unique circumstances of a blended family.

Address Guardianship for Minor Children

Spouses who get remarried with minor children should also ensure their estate plan addresses custody of their children if they pass away. If a spouse’s children still have their other parent, that parent may take custody. However, if a person remarries after their spouse passes away, they may nominate someone in their will to serve as guardian for their minor children.

Regularly Review and Update Your Plan

After updating their estate plans following a remarriage, spouses should review them every three to five years to ensure the plans remain up-to-date, reflect their current intentions, and comply with Arizona law If you experience any major life change before then, such as the birth or adoption of a child, you should modify your estate plan then.

Consult an Arizona Estate Planning Attorney

If you recently remarried, an experienced attorney can help you and your spouse address the unique circumstances of blended family estate planning. Contact Pennington Law, PLLC today for a free consultation to discuss best practices with a member of our legal team.  

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What Does a Trustee for a Revocable Trust Do?

The trustee of a revocable trust manages the trust per the terms of the trust document written by the creator of the trust (the grantor). A trustee receives and holds assets placed into the trust by the grantor. The trustee must maintain capital assets placed in the trust, such as real estate, or can invest cash or other liquid assets in the trust. The trustee may sell property in the trust, buy assets, or make new investments for the trust. The trustee must also distribute principal and income from trust assets to beneficiaries as required by the trust document.

Frequently, trusts are structured to include the name of a successor trustee. This person can assume trust management responsibilities if the original trustee passes away or becomes incapacitated. Trusts can also specify a process for appointing a new successor trustee if the existing one cannot serve.

Immediate Steps After the Trustee’s Death

One of the first steps the grantor and beneficiaries of a revocable trust should take after the trustee’s death is to notify the successor trustee that they must assume trustee duties. However, if the trust document does not name a successor trustee, the trust’s beneficiaries may need court intervention to appoint a new successor trustee.

Related: Key Qualities for Selecting a Trustee for Your Arizona Estate

Responsibilities of the Successor Trustee

A successor trustee’s duties include:

• Reviewing the trust document to understand their responsibilities, authority, and discretion
• Inventorying the trust to understand what assets it holds
• Paying past due bills and expenses
• Filing tax returns and paying taxes on behalf of the estate
• Making distributions to beneficiaries as directed by the trust document

What Happens If No Successor Trustee Is Named?

When a trust document does not name successor trustees for a revocable trust, the trust’s beneficiaries must petition the court to appoint a successor trustee. The trust cannot function without a court-appointed successor trustee, as no one can manage the trust’s assets or make distributions. The beneficiaries can advocate for selecting a specific individual to serve as the successor trustee. However, the court may appoint a professional trustee, such as an attorney, accountant, financial advisor, or trust company, to serve as the successor trustee.

Tax Implications If a Trustee Dies

The tax implications upon the death of a trustee will depend on whether the grantor has also died. In some cases, the person who creates a revocable trust will name themselves as trustee to manage their assets for their beneficiaries. If the grantor still lives, the trust will pay taxes in the ordinary course of business.

However, if the grantor has died and has a large estate per IRS guidelines, federal estate taxes may come due as assets in a revocable trust constitute part of the grantor’s estate for estate tax purposes. An experienced Arizona trust attorney can advise successor trustees and beneficiaries of what comes next after reviewing the existing trust document.

Talk to an Arizona Estate Planning Lawyer Today

Has the trustee of your revocable trust passed away? If so, you need experienced, highly rated legal counsel to walk you through the next steps. Contact the seasoned professionals with Pennington Law, PLLC today for an initial consultation to learn about what to do after the death of a trustee.

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What is a Living Trust?

A living trust can help you manage your assets more efficiently and/or provide anonymity and privacy regarding your high-value assets. Living trusts may allow you to enjoy the benefit or use of assets, such as a primary residence, during your lifetime and facilitate your heirs’ inheritance of those assets while bypassing the complex and costly probate process after your death.

If your estate isn’t small or simple enough (low allowances and costs, such as family allowances or funeral expenses and final medical bills of the deceased), then a probate shortcut might not be an option, and you’d better benefit from a trust.

How to Set Up a Living Trust in Arizona

The process of creating a living trust in Arizona involves several steps. You must:

1. Determine which type of living trust you need based on your estate planning objectives.
2. Inventory your assets and determine what property you want to place in the living trust.
3. Select a trustee (which could be yourself). You should also name a successor trustee who can assume responsibility if you can no longer serve as the trustee. You could also select a trusted family member, friend, professional advisor, or trust company to serve as the trustee.
4. Draft and execute the trust document outlining how the trustee must govern the trust. Signatures should be notarized.
5. Fund the trust by transferring funds to the trust’s bank account or retitling assets in the trust’s or trustee’s name.

Setting up a trust according to Arizona law is a complex process that can best be accomplished by consulting an experienced trust and estates lawyer—even if you have a will.

Pros And Cons of Setting Up a Living Trust

Pros

Some of the benefits of living trusts include:

• Avoids probate
• Allows for the distribution of family wealth per set schedules
• Enables an easier transfer of assets to beneficiaries after death
• Allows the investment of family wealth to generate a steady income stream for family members
• Gives the creator (grantor) the option to set conditions for beneficiaries to receive their inheritances (e.g., upon completing their education, etc.)
• Can be revoked or amended at any time

Cons

Potential drawbacks to living trusts include:

• Time investment for setup
• Fewer tax advantages than other types of trusts
• Limited protection from creditor claims

An experienced estate planning attorney can discuss the pros and cons of living trusts to identify the right estate planning tools for your situation.

Types of Living Trusts

Living trusts include any trust created during the grantor’s life. Arizona recognizes two types of living trusts:

• Revocable living trust – A grantor transfers assets into the trust but can change or revoke the trust’s terms at any time.
• Irrevocable living trust – In this type of living trust, the asset transfer is permanent, allowing the grantor to take advantage of asset protection or tax exemptions.

Talk to Our Arizona Living Trust Attorney

Pennington Law, PLLC is an award-winning Arizona estate planning law firm. If you need more information about living trusts and other estate planning tools to maximize your wealth and provide for your heirs, we can review your financial situation and make recommendations in a free consultation. Contact us today to speak with a knowledgeable living trust lawyer.

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What Are Out-of-State Assets in Arizona Probate?

In an Arizona probate case, out-of-state assets include any real and personal property that the decedent owned at the time of their death. Examples include:

• Vacation homes
• Rental properties
• Business interests in another state
• Vehicles registered and titled in another state
• Trusts administered according to the laws of another state
• Financial and investment accounts

A personal representative for an estate with out-of-state assets must open a separate case in the state where the property is located. This process is called ancillary probate.

Understanding Ancillary Probate in Arizona

When a non-resident passes away while owning property in the state, the personal representative of the decedent’s estate may open an ancillary probate in Arizona by filing a petition with the court in the county where the decedent owned property. The petition should include certified copies of the personal representative’s appointment in the primary probate proceeding in the decedent’s home state and copies of any official bond the personal representative has filed.

Ancillary probate can add costs and time to the estate administration process, but there are estate planning tools that can help plan around it, reducing hassles later.

Incorporating Out-of-State Assets into Your Arizona Estate Plan

If you own assets in multiple states, you may develop an estate plan that reduces or eliminates the need for ancillary probate proceedings. For example, you may consider placing out-of-state assets into a revocable trust that can distribute those assets to beneficiaries without the need for probate.

Alternatively, for assets like real estate, you may retitle them into joint tenancies with right of survivorship, allowing co-owners to immediately assume a deceased co-owner’s interest upon their death.

Additionally, it may be possible to use a transfer-on-death deed (TOD) naming a beneficiary to inherit your property upon your death. This tool could avoid probate, but a handful of states do not currently permit TOD deeds, meaning you will need to talk with an attorney about other options that could accomplish your goals.

Contact Our Arizona Probate Attorneys

If you own out-of-state assets and want to simplify the probate process for your personal representative and heirs, talk to the experienced estate planning and probate attorneys at Pennington Law, PLLC, today. We can discuss options so that all your property is accounted for in a comprehensive estate plan. By planning strategically, you can expedite asset distribution and ease property transfers to make settling your affairs as seamless as possible.

Call or contact us today for a free consultation.

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What Is Probate?

The probate process involves determining the validity of a decedent’s will and appointing an individual to serve as the estate’s personal representative (executor). Probate begins when a person nominated to serve as executor of a decedent’s estate presents the decedent’s will to the court for approval. If the court accepts the will as genuine and legally binding, the person approved as the executor will receive letters of administration and begin settling the deceased’s affairs.

If the decedent left no will, the court will rely on Arizona’s intestate succession laws to distribute assets.

Why You Should Avoid Probate in Arizona

Probate often involves delays and additional expenses before a decedent’s assets can be distributed to their heirs and beneficiaries. Various estate planning tools can help bypass the probate system, especially revocable and living trusts.

How a Trust Helps Avoid Probate

A revocable or living trust can help an individual or family avoid probate by providing an alternative means of distributing inheritances. With a revocable trust, you transfer assets and property from your probate estate before death. You can still access these assets during your lifetime and modify or revoke it as you wish. You will also name a successor trustee to handle asset distribution when you pass away.  Living trusts are not subject to probate in Arizona, so establishing one streamlines the asset distribution process and avoids court involvement.

Steps to Create a Trust in Arizona

Under Arizona law, a person can create a trust if they are legally capable, intend to do so, and the trust has a clear beneficiary, a charitable or noncharitable purpose, or is for the care of an animal. However, a person may not create a trust that names themselves as the sole trustee and beneficiary.

To create a trust, the person establishing the trust must execute a trust document naming one or more trustees and beneficiaries. The trust document should also provide rules or guidelines for how the trustee(s) should manage the trust, including how to distribute trust income and principal to beneficiaries. After executing the trust document, the person must fund the trust by transferring assets to the trust’s account or name.

While it’s possible to set up a trust on your own, consulting an experienced attorney is highly advisable to ensure the trust is structured to comply with state laws. An attorney can also discuss the tax liabilities you may incur and how a trust could impact your access to public benefits for long-term care.

Contact the Trust Attorneys at Pennington Law, PLLC Today

If you are considering establishing a trust to avoid probate in Arizona, you need experienced legal counsel to advise on how to structure a trust and the risks and benefits of establishing one. At Pennington Law, PLLC, we provide honest answers and sound guidance so you can protect your wealth and leave behind the legacy you want. Contact our firm today for a free consultation with a skilled trust lawyer.

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When Can You Revoke a Power of Attorney in Arizona?

Arizona law allows you to rescind a POA at any time, as long as you are mentally competent. This means you must understand what the document does and the effect of revoking it. A power of attorney also terminates automatically upon your death or if the agent resigns, becomes incapacitated, or dies without a named successor. If none of those circumstances apply to your situation, you must take formal steps to revoke the authority you previously granted.

How to Revoke a Power of Attorney

Follow these steps when pursuing the revocation of a power of attorney in Arizona:

• Prepare a written revocation – Draft a document stating that you are revoking the specific power of attorney. Include your name, the agent’s name, and the date the original document was signed. Keep in mind that if there are concerns about your mental capacity, the courts must decide your competency before a revocation becomes official.
• Sign, date, and notarize the revocation – You must sign and date the revocation document and bring it to a notary public, along with a witness. Both of you should have a photo ID as well.
• Destroy copies of the old POA – Collect and destroy all known copies of the original power of attorney if possible. Retain one copy for your records, writing “revoke” at the top of the document.

Notifying the Agent and Third Parties

Once you revoke a power of attorney, you must notify the former agent in writing. It’s also important to inform any banks, financial institutions, health care providers, or others who may have relied on the original POA. Provide them with copies of the revocation to prevent unauthorized actions by the former agent and a new POA, if you have one.

What Happens After Revocation of the POA?

Revoking a power of attorney removes the former agent’s legal authority to act on your behalf. However, third parties may still act according to the original document if they aren’t aware of the revocation. That’s why written notice is essential.

If the revoked POA was recorded with the county recorder, you should also notify the recorder’s office of the revocation. Doing so makes the revocation part of the public record. In some cases, a court may need to intervene if the former agent continues to act on your behalf or a dispute arises. Keeping documentation can help if questions arise about the revocation’s validity.

Contact an Arizona Estate Planning Attorney Today

If you’re considering revoking a power of attorney in Arizona, the Arizona estate planning attorneys at Pennington Law, PLLC can help you take the necessary steps to reduce the risk of confusion or disputes. We can also review your current documents and help you create a new POA that fits your needs. Contact us today for a free consultation with an experienced lawyer.

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