29 Apr Estate Planning Checklist: 10 Important Questions to Ask
Estate planning can feel overwhelming, but it doesn’t have to be. Whether you’re just getting started or you’re revisiting your current plan, asking the right questions can help you make sure your wishes are protected. This checklist covers ten of the most important estate planning questions in detail.
Ten Essential Estate Planning Questions
1. What Assets Do I Own, and How Are They Titled?
The first step in creating your estate plan is listing the assets you own, such as:
- Homes and real estate
- Checking and savings accounts
- Retirement plans and investments
- Vehicles
- Business interests
- Personal property (art, jewelry, collectibles, heirlooms.)
- Digital assets (cryptocurrency, NFTs, social media accounts, etc.)
As you are listing your assets, make note of how they are titled. For example:
- Is the property held jointly?
- Are there beneficiary designations on any of your accounts?
- Do you hold any assets in a trust?
Proper titling can mean the difference between a smooth transfer of assets and a lengthy court process. In Arizona, for instance, any property held in joint tenancy will go to the surviving owner. Or, if you’re placing assets in a trust, you must transfer ownership of those assets to the trust. And for accounts that require a beneficiary, like your life insurance policy or retirement fund, you’ll want to make sure that you named the right person.
2. Do I Need a Will and a Trust?
Every adult needs a will—dying without one can cause all sorts of problems for your family. Your legal will allows you to:
- Name beneficiaries for your assets
- Designate guardians for minor children
- Appoint an executor to settle your affairs
However, wills are subject to probate—a court-supervised process that can take months and that will become public record. For Arizona residents with substantial estates, blended families, or privacy concerns, setting up a trust is the better option.
By setting up a living trust you can:
- Avoid probate
- Keep financial matters private
- Name a successor trustee to manage your assets
3. Who Will Care for My Children or Dependents?
If you have young children or dependents with special needs, naming a legal guardian in your will is one of the most important decisions you can make.
Before naming a guardian, consider:
- Who shares your values and has a similar parenting style?
- Who do you trust that has a strong personal relationship with your children?
- Is this person financially stable and emotionally ready to take on the responsibility?
- Who would you name as an alternate guardian in case your first choice is unavailable?
You may also want to create a trust and appoint a trustee who can manage the assets you leave to your children until they reach adulthood.
4. Have I Documented My Healthcare Wishes?
Your loved ones shouldn’t have to guess what you would want in a medical emergency. In Arizona, you can set up advance directives, such as:
- A living will, which outlines your preferences for life-sustaining treatment, feeding tubes, ventilators, etc.
- A medical power of attorney, which appoints someone you trust to make healthcare decisions on your behalf if you can’t.
- A Do Not Resuscitate (DNR) directive, if applicable.
These documents can give you peace of mind, and lighten the load for those who may have to make tough decisions on your behalf.
5. Who Do I Want Making Decisions on My Behalf If I Can’t?
Accidents and illnesses can happen at any time. If you were suddenly unable to manage your affairs due to incapacity, who would you trust to step in?
In Arizona, two critical legal tools can help you answer this question:
- Durable Financial Power of Attorney—Authorizes someone you trust to handle your finances if you’re unable to.
- Medical Power of Attorney—Appoints someone you trust to make healthcare decisions for you when you can’t, such as life support, surgery, etc.
Without a power of attorney in place, your family may have to go to court to obtain guardianship or conservatorship—a costly, time-consuming process that can be avoided with proactive planning.
6. Are My Beneficiary Designations Up to Date?
Beneficiary designations override your will or trust, so it’s vital that they are accurate and aligned with your current wishes.
Make sure to check the designations on these accounts:
- Life insurance
- IRAs and 401(k)s
- Payable-on-death (POD) deeds
- Transfer-on-death (TOD) bank accounts
Don’t forget to update your designations after major life events, such as marriage, divorce, the birth/adoption of a child, or the death of a beneficiary. It’s also a good idea to name alternate beneficiaries, just in case your primary declines the inheritance or cannot inherit.
7. What Are My End-of-Life Preferences?
This is not an easy topic to think about, but planning for your funeral arrangements can make a world of difference for your loved ones after you’re gone.
Here are some questions to consider:
- Do I want burial or cremation?
- Are there any specific religious or cultural traditions I want followed?
- Have I prearranged or prepaid for services?
You can include your preferences in a letter of instruction to guide your family when the time comes. Because wills have to go through probate, which can take a long time, it’s important to express these wishes in a separate document. Give a copy to the executor of your estate, so they can make sure your wishes are followed.
8. Have I Considered Tax Implications?
While the state of Arizona does not impose an estate tax, federal estate taxes still apply to large estates.
Other tax considerations include:
- Income taxes on inherited retirement accounts
- Capital gains taxes on appreciated property
- Gift taxes on lifetime transfers over certain thresholds
Working with an estate planning attorney and a tax professional can help you reduce or avoid these burdens. They can advise you on estate planning strategies like:
9. Have I Planned for My Digital Assets and Online Accounts?
It’s important to protect your digital assets as well. Arizona law allows you to authorize someone to manage your digital assets, but you must grant that access clearly in your will.
Digital assets can include:
- Email and social media accounts, along with their login credentials
- Online banking and investment platforms
- Domain names and websites
- Cryptocurrency wallets and NFTs
- Cloud storage and digital photo libraries
Consider creating a secure list of logins or using a password manager, and specify your wishes regarding what should be deleted, preserved, or passed on. You can also protect your digital assets with a digital vault.
10. When Was the Last Time I Reviewed My Plan?
Your estate plan should evolve as your life does. Major events that signal it’s time to update your estate plan include:
- Marriage or divorce
- Birth or adoption
- Changes in financial status
- Moving to another state
- The death or incapacity of a named agent, trustee, or beneficiary
Even without a major life event, it’s a good idea to review your estate plan at least once every three years. This way, you can be sure that it reflects your current wishes and that all your documents are legally valid.
Get Answers for All Your Estate Planning Questions
The legal team at Phelps LaClair has been guiding Arizona families through the estate planning process for over 40 years. From first-time plans to 3-year updates to trust administration, we’ll be at your side every step of the way.
Whether you’re in Mesa, Chandler, Tucson, or beyond, we’re here to help you build a secure and customized estate plan that meets your wishes. Contact us today to schedule a free consultation.
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