Real Estate and Estate Planning in the Phoenix Valley, Part 2
In our most recent blog post we touched on several options for passing on your rental properties and real estate investments to your beneficiaries. In this post, we will look at additional factors to consider in your end-of-life planning as a real estate owner. At Phelps Law, with offices in Phoenix, Chandler, and Mesa, we’ve helped hundreds of families make a smooth transition from one generation to the next. If you have questions about your real estate investments and estate planning in Phoenix, AZ, we can help you set in place a plan that works for you and your family.
Powers of Attorney and Your Real Estate Investment
If you’re new to estate planning, there are two significant powers of attorney that you should consider: health and financial. In the event that you become incapacitated, your power of attorney for healthcare will make decisions for you, based on stipulations you have written concerning your desire for medical care. Their activity on your behalf can bring peace and order to the decisions that will need to be made and help your loved ones rest easy at a difficult time in the family.
As for your finances, establishing a financial power of attorney (POA) gives someone the right to act on your behalf in financial matters. A financial power of attorney can be set up to take effect immediately, or on the occasion of some future event such as disability.
It’s important to name a financial power of attorney to handle your financial matters in case you are ever mentally or physically incapacitated. Otherwise, your financial investments could run amok through inaction, delay, or inattention. Your rental properties need constant attention, and delays that occur as a result of an unanticipated crisis could put your investments at risk of loss or even at risk of legal action by unhappy tenants or bill collectors. Establishing a financial POA to take over your real estate investments and rental properties is one way to prevent financial loss, minimize stress for your family members, and/or avoid disputes between children or grandchildren about who will take charge in your absence.
Your financial POA can be the same person as your Successor Trustee, or they can be a different person. Establishing a financial POA and a successor trustee to take over matters of your estate in your absence could enable your family members to be provided for through ongoing rental fees and income tied to your real estate investments. By putting in place a financial power of attorney and a successor trustee, the financial transfer of your rental properties and real estate can be done without the delay or expense of court-ordered probate.
Living Will and HIPAA Release Form
Along with establishing a financial power of attorney, it’s a good idea to put in place a living will. A living will is different from a living trust. A living will often accompanies a health care power of attorney. The living will states your wishes for extended medical care, should you become incapacitated and unable to speak or communicate for yourself. If you’d like to know more about a living will, click here.
Consult an Attorney
When dealing with real estate investments and estate planning in Phoenix, AZ, it’s best to consult an estate planning lawyer to guide you through the process. Don’t use an online format or try a do-it-yourself approach. Being ready for a successful handover of real estate and rental investments requires the help of seasoned lawyers who have a history in knowing how to handle every type of asset. If you’d like to know more, we invite your inquiry at Phelps Law. We’ve got offices located in Phoenix, Chandler, or Mesa, Arizona. We’ll be glad to sit down with you, and together, tailor a solid estate plan that includes a smooth transfer of your rental properties and real estate investments.