Introduction and Firm Overview
00:00:00
Michelle Dexter: Good morning, everyone. My name is Michelle Dexter. I’m an estate planning attorney here with Keystone Law Firm. I handle most of our estate plans as well as some trust administration, probate, guardianship, and conservatorship matters. Thank you so much for joining us for this webinar. We are thrilled to be presenting information to our community to help everyone have a better understanding of estate planning options and the things you can do with regards to your estate plan. We really appreciate you joining us this morning.
This webinar is being recorded, so it will be available on our YouTube channel probably later on this week after Alexis has the opportunity to clean that up and get it posted. We’ve got some other webinars on there as well, and I’ll share that information with you at the end of the presentation today. First, of course, because we’re a law firm, we want to share our disclaimers.
00:09:55
Michelle Dexter: This information is being provided for informational purposes only. We’re not providing any legal advice as part of this presentation. If you do have questions, please use the chat feature down towards the bottom of the Google Meet. Since I am managing the sharing and the questions myself, I’ll likely try to answer those at the end, time permitting.
Lastly, I want you to remember that each of your families is unique. Your situation is specific, and you know these people better than we do. We don’t want you to take this as a “one-size-fits-all” approach. This is intended to help you know all the different things you can share, and you can choose what is appropriate to share with your family.
How Much Information Should You Disclose?
Michelle Dexter: How much should you disclose? Disclosure of information will vary depending on your family dynamics, the stage of your life, and your relationships with the people involved.
00:10:55
Michelle Dexter: This webinar will cover information that may be shared, but you should decide what is appropriate for your situation—whether you’re married, whether you’re on good terms with your beneficiaries or your kids, and so on.
One question I often get is: should you give copies of your documents to your agents or your beneficiaries? Generally, I say no. Let them know that the documents exist. For our firm, our clients usually get a three-inch blue binder. Let them know those documents are there and how to find them when they’re needed. In cases of emergency, Keystone Law Firm keeps a scanned copy of those documents, so you could simply give them our business card.
When would these people be using those documents? If you are a married couple and you are each other’s initial agents, your successor agents don’t necessarily need to know all that information immediately. However, they should be aware of it in the event that both of you are in an accident.
00:12:04
Michelle Dexter: If you’re a single individual, letting your agent know where those documents are, what authority they will have, and what steps they should take is generally a good idea.
Another reason I don’t recommend giving out copies to everyone is that those documents may change over time. If you’ve given out copies and then make changes, you have to go and get those copies back, which may lead to awkward conversations. If you’ve changed who your agents are or changed beneficiary shares, the people who previously had copies might ask why they aren’t getting a new one.
Disclosure will vary at different stages of life. When you are a young person in your 30s, 40s, or 50s, you aren’t necessarily going to share everything because those documents are more likely to change.
00:13:11
Michelle Dexter: But for my clients in their 70s, 80s, and 90s, it’s very important that their agents understand the documents they have and when and where they will be utilized.
Do you disclose who’s getting what? Typically, no. It’s really none of their business, and generally, people aren’t guaranteed to receive anything. You may spend all of your assets, or you may change your beneficiary designations. However, if you’re doing something unexpected, you may want to consider whether to disclose that information during your life or leave a note for them after you pass to explain your reasoning—keeping in mind that things may change. We’ll talk more about that towards the end.
Communicating with Agents vs. Beneficiaries
Michelle Dexter: You may also have separate conversations with the people who are your agents versus the people who are your beneficiaries. Your agents should understand the expectations, their roles, and their responsibilities.
00:14:21
Michelle Dexter: Beneficiaries generally need less information, so you don’t necessarily have to share as much with them. But with your agents, that’s where we talk about disclosing more.
At Keystone, I like to offer our clients and Trust Care members the option to have their agents come into signing appointments. This allows them to learn about the documents and how they are used. I include this as part of our services because often when you have these conversations privately, the agents ask questions you might feel ill-prepared to answer.
Additionally, many times our kids don’t want to have these conversations. They sometimes equate the need for these documents with something terrible happening. While we prepare these documents to prevent issues, the topic can be emotional.
00:15:24
Michelle Dexter: Bringing them into the law office in a professional setting makes it feel more like a business transaction and less like an end-of-life conversation.
Key Financial and Health Care Documents
Michelle Dexter: Let’s discuss the documents you should talk about with people when appropriate. Regarding financial documents, we’re talking about your Revocable Trust. If you have an Irrevocable Trust, you might discuss that too. Then there is your Will (also known as a Last Will and Testament) and your Financial Power of Attorney. For your agents especially, you might discuss your assets—where they are located, what valuables you have, and items of sentimental value.
In terms of health care documents, you may have a different set of agents. Your financial people may be different from your health care people. These documents include your Health Care Power of Attorney, HIPAA Authorization, Living Will, and a Do Not Resuscitate (DNR) order. We’re going to go through those in more detail.
00:16:32
The Role of a Financial Agent
Michelle Dexter: When choosing a financial agent, remember that this is not an honorary position; it is a job that takes time and effort. I often see people worried about hurting their children’s feelings, so they choose based on birth order. That is not always in your best interest. You want the person who shares similar financial beliefs, handles their own money well, has the time and ability to manage things if you can’t, and will take the job seriously. Sometimes birth order works out great, but don’t feel it is a requirement.
00:17:35
Michelle Dexter: Agents should also know how the different documents work to avoid frustration. If they are the Trustee under the Trust and the agent under the Power of Attorney, those two positions deal with different sets of assets.
Your Trustee handles assets titled to the Trust, like your bank accounts, house, or brokerage accounts. However, your retirement accounts are usually in your name during your lifetime. If your agent needs to access an IRA to pay for assisted living, they will use the Power of Attorney to pull the money out, deposit it into the Trust account, and then act as the Trustee to pay the bills.
00:18:37
Michelle Dexter: Understanding that can eliminate frustration. If they go to the bank with a Power of Attorney trying to act for the Trust, the bank will send them away.
We also want them to understand their duties to the beneficiaries to avoid conflicts. During your lifetime, your agents have an obligation to you. If you lack the capacity to understand these things, we recommend that your agents have their actions—what they are collecting and spending—viewed by a third party, like a family member or a professional, to make sure things are handled properly.
00:19:52
Michelle Dexter: Once you pass away, their obligation shifts to the beneficiaries. Sharing information with beneficiaries at that point is important. They should give notice that they are acting as Trustee, perform an inventory, and provide regular accountings. I see a lot of litigation where a Trustee thinks they have exclusive control and doesn’t share anything, which makes everyone frustrated.
Your agents can help you during incapacity, but they can also help you at your request.
00:20:51
Michelle Dexter: Many clients, perhaps after losing a spouse who managed the finances, feel they are missing things. You don’t have to fully step down; you can have someone “step up” to help. You should define what that looks like: what are they paying? What are you paying? Are you meeting monthly to discuss management?
Your agent should also understand they have obligations to creditors and beneficiaries after your death. Some people want to ignore creditors or decrease a beneficiary’s interest; they can’t do that. You want someone willing to fulfill these legal responsibilities.
00:21:52
Choosing the Right Agent
Michelle Dexter: Why choose specific agents? As I mentioned, look for similar financial ideologies and a willingness to act. While many bills are auto-paid now, it still takes effort. Most importantly, the agent must be trustworthy. They must act in your best interest and the beneficiaries’ best interest, not their own.
00:22:47
Michelle Dexter: They also have the option to share responsibilities. Generally, I tell clients: do not force two of your kids to work together as co-agents. It leads to complications—both having to be at the bank or on the phone at the same time. I suggest letting them choose to act together at the time the need arises. Forcing it often ends up in our litigation department, which is a waste of assets.
Also, know that third-party and corporate fiduciaries are available for a fee. Keystone Law Firm recently started offering this for Trust Care clients who may not have a close family member able or willing to take on the job.
00:24:00
Why a Trust? Avoiding Probate and Conservatorship
Michelle Dexter: Another important thing to talk to your family about is why you are doing a Trust. Here in Arizona, the probate process is not simple. It involves a stack of papers, takes a minimum of several weeks, and becomes part of public record. Investors often troll court records and contact families immediately to buy their property. A Trust is private and stays out of probate.
00:25:55
Michelle Dexter: People often think adding a family member as a co-signer or co-owner on a bank account is an easy fix, but there are downsides. If that co-owner is sued, your money is subject to their judgments and garnishments. Furthermore, when you pass away, that money belongs to them, not your estate. We see many cases where a child was added to pay bills, but after the parent passes, the other siblings are upset because that account legally belongs only to that one child. In a Trust account, the child is a Trustee, not the owner.
00:26:53
Michelle Dexter: Additionally, transferring assets like a house to your children during your lifetime can result in extra taxes. You lose the “stepped-up basis,” meaning the kids might have to pay capital gains tax when they sell. It also triggers a gift tax return if the value exceeds $19,000 per year. Keeping it in the Trust ensures they get the stepped-up basis without triggering those taxes.
A Trust also helps avoid a conservatorship during your lifetime. In Arizona, the conservatorship process is lengthy and expensive. It involves court-appointed attorneys, investigations, and hearings that are often three months out.
00:28:54
Michelle Dexter: Once appointed, a conservator must submit inventories, budgets, and annual accountings to the court. With a Trust, you still do inventories and accountings, but it’s more informal and doesn’t require the court’s constant approval.
Some people think a Will is enough, but a Will is just instructions to the court—it still triggers probate. The Trust is what avoids it.
00:30:41
Health Care Documents and Responsibilities
Michelle Dexter: Moving to health care, your agent’s responsibility is to make decisions when you cannot. It’s important to know that they do not get to overrule you; a doctor determines whether you have the capacity to make your own decisions.
The Health Care Power of Attorney is used only when you can’t make decisions. We also have a separate HIPAA Authorization that allows agents to make appointments, pay bills, and talk to doctors even if you still have capacity.
00:32:50
Michelle Dexter: It’s also vital that they understand your wishes. We provide a letter of instruction that covers things like second opinions, living at home versus a facility, and thoughts on medications. Spouses usually understand each other’s wishes, but it can be harder for a child or friend to make those tough emotional choices without written guidance. In Arizona, these documents can be registered with the Arizona Healthcare Registry, and copies are acceptable at hospitals.
00:34:59
Michelle Dexter: When choosing a health care agent, ask: will they honor your wishes? Ideally, they should be nearby or willing to come. Hospital cycles are 24/7, and you need an advocate. If they aren’t nearby, do they have medical knowledge to talk to the staff effectively?
00:36:02
Michelle Dexter: Will they communicate with the people you want consulted? If your children are at odds, you need an agent willing to keep everyone on the same page.
I generally recommend naming one person at a time for health care decisions. If you name multiple people and they disagree, the doctor might require a court-appointed guardian, which leads back to that expensive court process. You can tell your kids the plan is for them to consult together, but one person must have the ultimate authority to speak to the doctor.
00:38:04
Michelle Dexter: Also, your Health Care Power of Attorney allows you to designate burial or cremation. In Arizona, the default is burial. If you want cremation and don’t designate it, all family members might be required to sign off on it, which can be a problem if someone is incapacitated or unreachable.
00:39:02
Michelle Dexter: The HIPAA Authorization is different; everyone listed can access information. This helps children feel involved because they can all talk to medical staff. It is also critical for your successor trustee; if they need to handle your finances due to incapacity, they need a doctor’s note, and the doctor can’t release that without a HIPAA Authorization.
00:40:57
Living Wills vs. DNR Orders
Michelle Dexter: People often confuse a Living Will with a Last Will and Testament. A Living Will—what I call the “don’t drag me out” document—discusses end-of-life decisions like pain relief and artificial hydration if you are in a persistent vegetative state. It has nothing to do with your assets.
00:41:48
Michelle Dexter: A Do Not Resuscitate (DNR) order is what I call “don’t bring me back.” It’s a medical order regarding CPR if your heart stops. This is something to discuss with your physician, not your attorney. It isn’t appropriate for everyone—a 30-year-old usually doesn’t need one, whereas someone in their 90s or with a terminal illness might. Make sure your agent knows the difference so they don’t accidentally tell a hospital you have a DNR when you only intended to have a Living Will.
00:43:37
Practical Matters: Accessing Information
Michelle Dexter: You don’t have to share every password and safe combination right now, but let your agents know how to find them. They will eventually need access to your phone (for calendars and contacts) and your email. You can leave a log of passwords in your safe or on a flash drive and mention the location in your binder.
00:44:35
Michelle Dexter: Let them know what to do in an emergency. Do you have a list of monthly bills? Are they auto-paid? Since most things don’t come through the mail anymore, successor trustees often get hung up on trying to find where the electric bill is paid. Providing a simple summary of professionals (tax preparers, etc.) and how bills are handled is extremely helpful.
00:46:21
Michelle Dexter: Also, remember that Trustees can be compensated for their time from the trust assets. They can also use trust assets to pay professionals like lawyers or CPAs. Sharing your expectations on compensation prevents confusion later.
Regarding final arrangements, communicate if you have pre-planned services or specific desires for how you want to be honored.
00:49:24
Michelle Dexter: If you are a Trust Care member with Keystone, a meeting with the attorney upon your incapacity or death is included in your membership. This can relieve a lot of stress for the family. We walk them through the timelines and legal processes. I always tell beneficiaries: please don’t count the money before you receive it. We have to handle creditors, taxes, and asset sales before distributions can be made.
Transparency and Final Thoughts
00:50:22
Michelle Dexter: Transparency is key, but not always immediately needed. If you think they’ll be surprised by your estate plan, explain your reasoning now or in a note. However, if you write a “love letter” explaining your choices, keep it updated. Relationships change—someone disinherited one year might be your primary caregiver the next.
00:52:38
Michelle Dexter: Finally, make sure your agents understand the level of transparency expected. Litigation often stems from trustees withholding information. Helping them understand that they must share information with beneficiaries helps avoid internal family turmoil.
00:53:44
Michelle Dexter: We have about 15 minutes left. If you have a question, use the chat feature or raise your hand to unmute. Please don’t share detailed personal information, as this will be on YouTube.
If there are no questions immediately, I’ll mention that our other webinars are on Keystone Law Firm’s YouTube channel. Francisco, Carmy, and I have done several over the last few months.
00:54:49
Michelle Dexter: I’ll take a question from Diane first.
Dianne: Can you please tell me what you meant by the membership and how you become a member?
Michelle Dexter: Sure! At Keystone Law Firm, when you engage us for an estate plan package, you are included in the Trust Care membership for the first year. After that, there is an annual fee. It includes a yearly meeting, any necessary document changes, and meetings with your family in the event of incapacity or death. I’d be happy to have Alexis reach out to you with more details.
00:56:59
Michelle Dexter: Alexis, can you share our next webinar?
Alexis Rico Cortes: Sure! The next one is “Mom has dementia. Now what?” hosted by Francisco on February 20th at noon. After that, “What happens to taxes when one spouse is gone?” hosted by our financial adviser, Karmi Gutman, on February 24th at noon. I’ll drop the registration links in the chat.
Michelle Dexter: Thanks, Alexis. We really appreciate you all giving us your time today. I hope you learned something. Trust Care clients, feel free to reach out with more questions. Have a great day and a great week!
00:58:49 [Transcription End]
