The 5 Estate Planning Documents Every Arizona Family Should Review in the New Year

By Anjali Patel

The start of a new year is one of the few moments when people naturally pause and take stock of their lives. For Arizona families, that pause often includes finances, insurance, taxes, and long-term planning. What tends to get overlooked is estate planning, especially when documents already exist. Many people assume that once their estate plan is signed, it is “done.” In reality, estate planning documents are only as effective as their accuracy, coordination, and alignment with current law and family circumstances.

Even if you already have an estate plan in place, the new year is an appropriate time to review the core documents that govern what happens if you die or become incapacitated. Arizona law has its own nuances, and small changes in family structure, assets, or beneficiary designations can have outsized consequences if documents are outdated or inconsistent.

A Will

A will is often the first estate planning document people think of, and in Arizona, it still plays a central role even for families with trusts. A properly drafted will controls what happens to assets that are not otherwise governed by a trust or beneficiary designation. It also allows parents to nominate guardians for minor children, which is one of the most important decisions a family can make.

The most common problem with wills is not that people lack them, but that the will no longer reflects reality. Families change. Children are born or grow up. Relationships shift. Assets are acquired or sold. A will that once made sense can quietly become incomplete or misleading.

Another issue is coordination. If a family has a trust, the will should typically function as a backup, not as a competing distribution plan. In Arizona, poorly coordinated wills and trusts can increase the likelihood of probate or create confusion about the testator’s intent.

Reviewing a will annually allows families to confirm that guardianship nominations are still appropriate, beneficiaries are correct, and the document still works alongside the rest of the estate plan rather than against it.

A Revocable Living Trust (If You Have One)

For Arizona families who use revocable living trusts, the trust is often the centerpiece of the estate plan. A trust can help avoid probate, provide continuity during incapacity, and control how and when assets are distributed after death. But a trust is not self-executing. Its effectiveness depends on both its terms and how it is maintained over time.

One frequent issue is that trusts are not updated after major life events. Marriages, divorces, deaths, and changes in relationships with trustees or beneficiaries all warrant review. Another issue is that trust provisions may no longer align with a family’s goals, particularly when children reach adulthood or when financial circumstances change.

Arizona law also evolves. While revocable trusts are flexible, older trust language may not reflect current best practices or statutory changes. Reviewing the trust annually allows families to confirm that successor trustees are still appropriate, distribution provisions still make sense, and the trust structure still matches the family’s needs.

Just as important, a trust review should include a reality check on funding. Assets that were intended to be owned by the trust are sometimes never transferred into it, which can undermine the entire plan.

Beneficiary Designations

Beneficiary designations are deceptively powerful. Retirement accounts, life insurance policies, and some bank and investment accounts pass according to beneficiary forms, not according to a will or trust. In Arizona, this means that even a well-drafted estate plan can be overridden by an outdated beneficiary designation.

These designations often go untouched for years. People change jobs, open new accounts, or name beneficiaries during stressful life moments without revisiting those choices later. As a result, former spouses, deceased individuals, or unintended beneficiaries remain listed long after circumstances have changed.

Another issue is coordination with trusts. Naming a trust as a beneficiary can make sense in some situations, particularly when minor children are involved, but it requires careful drafting to comply with tax and distribution rules. Simply naming “my trust” without reviewing the trust terms can create unintended complications.

An annual review of beneficiary designations helps ensure that assets will pass to the intended people, in the intended way, without unnecessary delays or legal disputes.

Financial Power of Attorney

A financial power of attorney allows someone you trust to manage your financial affairs if you become incapacitated. In Arizona, this document can be as broad or as limited as you choose, but it must be properly drafted and executed to be effective.

Many families discover problems with financial powers of attorney only when they are urgently needed. Banks and financial institutions may refuse to honor older documents, especially if they are vague or poorly drafted. Agents named years ago may no longer be appropriate or available. Backup agents may be missing altogether.

Reviewing this document annually allows families to confirm that the named agents are still trustworthy, capable, and willing to serve. It also provides an opportunity to update the scope of authority to reflect current assets and planning goals. A financial power of attorney should be practical, clear, and tailored to how a family actually manages its finances.

Health Care Power of Attorney and Living Will

Health care documents are often emotionally difficult to think about, which is precisely why they are so important to review intentionally. In Arizona, a health care power of attorney allows someone to make medical decisions on your behalf if you cannot, while a living will communicates your wishes regarding life-sustaining treatment.

These documents are not just legal formalities. They are guidance tools for the people who may one day have to make urgent decisions under stress. Over time, personal values can shift, medical technology evolves, and relationships with potential decision-makers change.

An annual review provides a chance to confirm that the named health care agents are still the right people and that the stated wishes still reflect your values. It also encourages conversations among family members, which can reduce conflict and uncertainty if the documents ever need to be used.

Why Annual Review Matters

Estate planning is not a one-time task. It is an ongoing process that should evolve with your life. In Arizona, the interaction between wills, trusts, beneficiary designations, and powers of attorney means that even small inconsistencies can create real problems for loved ones later.

The new year is an ideal time to review these documents because it aligns with broader planning habits and creates a natural checkpoint. Catching issues early is far easier and less expensive than fixing problems after a death or during a crisis.

Next Steps

If you already have estate planning documents, reviewing them does not necessarily mean starting over. In many cases, small updates or clarifications can significantly improve how well a plan works. If you do not yet have an estate plan, a review of these five documents provides a clear framework for getting started.

Arizona estate planning works best when documents are coordinated, current, and tailored to the realities of your family’s life. A periodic review is one of the simplest ways to protect the people you care about from unnecessary stress and uncertainty.