Arizona Estate Planning Lawyer & Attorney : Stephen Follett Law Firm : Probate Law and Trusts : Gilbert, Phoenix, Arizona

In light of Britney Spears' recent problems, the court has declared she is not capable of handling her own affairs.  As a result, her father was appointed to take care of Britney and some of her assets.

Britney also formed a trust according to this article.  Like most trusts, Britney was named as the sole trustee.  However, because she was judged incompetent to handle her own affairs, she can no longer manager her trust.  Apparently, the trust did not provide for a successor trustee, because her brother and attorney are now acting as trustee.  Or, court action was required to have them appointed.

Now that her brother has been appointed, he is trying to determine what the trust owns.  Britney was not clear on "funding" the trust.  She put some of her assets and companies in the trust but others were left out.  So, he has petitioned the court to make a ruling to try to determine what is in the trust for him to manage.

The lesson is that maintenance of your estate plan and trust is important.  While it is good that Britney formed the trust, it would have been better if she funded the trust.  It would have been best if she kept a list of the assets in the trust for the benefit of the succeeding trustees.

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Yuma, Arizona attorney Larry Deason identifies seven important elements of an Estate Plan in this article.   The article is brief and easily understandable.

The seven points he makes are:

1. Health care power of attorney with a living will so your appointed agents can care for you to avoid costly guardianship.
2. HIPPA authority so that your loved ones can have access to your confidential medical information.
3. Durable financial power of attorney so your appointed agents can care for your money and assets to avoid costly conservatorship.
4. Revocable living trust to avoid costly living probate (conservatorship) and death probate.
5. Pour over will so anything not in the living trust is added upon death.
6. Funeral trust to protect money from creditors and Medicaid to ensure your family does not bear the burden of your funeral.
7. Completed legacy estate plan distributing the personal items (like grandmother's ring or grandfather's watch) that most frequently cause family fights.

I agree with each of these points.  However, a revocable living trust is not necessary for many situations.  In a modest estate, a will and proper advance planning is sufficient.

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Look here for a simple article on choosing a guardian for your minor children.  The three simple steps it lists are:

1. Make a list of possible guardians.
2. Decide what matters most.
3. Match people with priorities.

Perhaps the most important thing to remember is that you do not have to consider your possible guardian's ability to manage finances.  You can appoint a conservator/trustee to manage the money. 

Accordingly, in conjunction with your decision for guardian, you can choose a conservator or trustee to hold the money and spend it for your children--according to the instructions you leave them.  The three simple steps for choosing a conservator/trustee would be the same except you would subtitute your financial principles and priorities with those of raising your child.

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I mentioned my desire to offer free education to the public in a previous post.  I am pleased to have an upcoming seminar offered free to the public.  I hope to see you there.

The first session of my new seminar:  "19 Smart Ways to Plan Your Estate" will be held Tuesday March 18, 2008 from 1:30 to 3:30 at the community room at Northern Trust Bank in Sun Lakes, Arizona.  A flyer with a detailed description of the program can be downloaded here.  It requires Adobe Acrobat Reader which is free.

The seminar was designed with special emphasis on 12 Planning Mistakes That Could Cost Your Family a Fortune -- and Their Solutions”   Come learn about the good and bad about wills and living trusts, especially 20 misconceptions about wills and trusts.  Read the flyer above for even more exciting topics.

This will be a unique - fact filled seminar that you will not want to miss.  It will be filled with examples that will engage your mind as I lead you through the legal process of creating an estate plan.  Mark your calendar now!  Invite a friend.  If you cannot make it, please feel free to call me for more information.

Topics include, living trusts, wills, powers of attorney, health care powers of attorney, living wills, ethical wills, beneficiary deeds, payable on death accounts, IRAs, retirement plans, and more.

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I wrote previously about my experience with Annuity Scams and Living Trust Scams.  Every time I think about that experience I get a pit in my stomach.  So called "advisors" took advantage of their client's trust and wrecked the lives of ordinary families.  Many were in their golden years with less than $50,000.00 in their nest egg.

To work against the trust mills and unscrupulous "advisors", I want to educate the public about living trusts so they can avoid the financial scams.  I am proud to be an estate planning attorney and lawyer and I want to share my knowledge with others.  There should be no "secrets" in estate planning that only the wealthy know.

I am so excited about a partnership I am developing in the Sun Lakes and Chandler area where there is a greater need for education.  This partnership will be of tremendous benefit to those who live in and around Sun Lakes and Chandler who want to learn more about Living Trusts or other estate planning tools. 

This is the purpose of my effort: 

Anyone, regardless of income and status in Sun Lakes or Chandler can learn what they need to know about wills, financial power or attorney, healthcare power of attorney, living will.  And, they can clear away the misinformation about living trusts so they learn who could benefit from a living trust, because not everyone should have a living trust. 

If you support that mission or would like to participate, then check back for more information or call me with questions.  If you or your organization would like to sponsor a class on living trusts or another aspect of estate planning, I will do what I can to make myself available.

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The sagas of our many celebrities take many dramatic turns.  As an estate planning attorney, I see an example in Britney Spears that should give us all pause.

The media has made a huge issue of Britney's spiral out of control.  Her situation has unfortunately deteriorated so far that the court took away practically all of Britney's legal authority to make decisions for herself.

Britney's father went to a California court to petition for control over her money, her home, and even her health.  He agreed and gave him control over Britney.  The judge also gave him power to seek an order of protection against Britney's boyfriend whom the family apparently does not like.

The lesson from this is to understand that for whatever reason, a car accident, a stroke, an illness, age, etc. we might be unable or incapable of making decisions.  In that situation, someone else must act for us to protect our best interest.

You can choose who that will be with properly executed powers of attorney.  The person you appoint as your "attorney in fact" can step in when you need them.  If you do not, then an interested person may step in just like Britney's father did. 

However, if you do not make your wishes known now, the court will have to decide who makes your decisions for you.  The court appoints guardians over the "person" and a conservator over the "money."  And, it is expensive.

Be prepared.  Create legally binding financial powers of attorney and healthcare powers of attorney so your chosen person or people can act for you.

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I am excited about my brand new office in south Gilbert. Arizona.  It is located at the Offices at Seville in the Northeast corner of Chandler Heights Road and Higley.  It is conveniently located to serve Gilbert, Queen Creek, Johnson Ranch, and Anthem in Pinal County. 

For the convenience of my clients, I retained my location in Chandler Arizona by appointment only.  It is is located off Loop 202 at Cooper and Ray in the fabulous new Cooper Crossing offices.  This Chandler office is conveniently located to serve Chandler, Gilbert, Ahwatukee, Mesa, Tempe and Sun Lakes in Maricopa County. 

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Many people I meet with do not know a "secret" benefit of creating a living trust in Arizona.  Every estate plan including a trust should be drafted with this secret taken into consideration.  After learning the secret, clients are even more excited about the benefits of their trust. 

This secret is how a trust avoids "living probate" in addition to "death probate."  Neither "living probate" nor "death probate" are legal terms, but they aptly describe two times the court and government normally step in to "protect" our interests.

Most everyone has heard of "death probate" when a person dies.  Avoiding this probate is good because the Arizona Superior Court process is slow, public, and can be very expensive.  There have been many books and articles written on the subject, and this is a primary reason why Arizonans create a trust. 

The "secret" of avoiding "living probate" excites my clients when I design their estate plan! 

Avoiding "living probate"  is another very compelling reason to have a trust in Arizona.  Consider what happens if you are severely injured in an accident and suffer serious brain damage, or more commonly you gradually loses the ability to make financial decisions due as you grow old.  You are"incapacitated" and the court and government step in to "protect you."  

When you are incapacitated, a loved one or any interested party can go to probate court and petition to be appointed "conservator" of your money and assets.  Nursing homes have sought to be appointed conservator.  Even if your family agrees, they will have to spend thousands of your money and take unnecessary time, increasing the burden on those caring for you.  When there is disharmony in a family or there are significant assets, the decision of who gets to control your money is often contentious and will cost thousands to tens of thousands more.

Significantly, you will not be able to tell the court your wishes.  Someone that you would never choose yourself may be appointed as your conservator by the court .  This living probate is as undesireable as probate after we die.

A properly drafted trust is the answer to the concern about "living" probate court.  Your trust will designate the person to control the assets.  When you, the owner of the trust become incapacitated, your trusted representative seamlessly step in as successor trustee without court approval or challenge by other "interested" parties.

I was surprised when one client already knew this secret.  His cousin was already taking care of a relative that was incapacitated.  He saw the benefits of a trust and wanted to avoid "living probate."  Having seen that situation, avoidance of "living probate" was very important because he would be living if it happened.

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