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Thomas Jefferson stated, "The earth belongs in usufruct to the living; the dead have neither power nor rights over it."

Fortunately, under Arizona and federal law, you do have certain power over your own property, both during life and after death. As a society we are hard at work, many times at a frantic pace, acquiring and managing various forms of property. The fruits of our labors have resulted in residences, life insurance policies, annuities, stocks, cash accounts, interests in family businesses, certificates of deposits and other forms of property. The purpose of estate planning is to ensure that you will be able to make use of and enjoy your property to its fullest. An effective estate plan allows you to pass your estate to loved ones, with the least restrictions possible. An estate plan should also consider the management of your assets in case of incapacity and provide the means for your medical care decisions to be made when you are unable to do so yourself.

An appropriate estate plan depends largely upon your individual needs, the size of your estate and other considerations. The following is a brief list of possibilities to consider when planning your estate:

1. A Revocable Living Trust. The revocable living trust is usually the cornerstone of an estate plan. A trust is a devise whereby the trustor (the person creating the trust) names a trustee to manage property on behalf of one or more beneficiaries.

   A revocable living trust is created when the trustor transfers all of his or her assets to the trust to be held for his or her own benefit during his or her lifetime and is held thereafter for the benefit of other named beneficiaries.

   Once the trustor is deceased, the trust assets are distributed according to the directions contained in the trust document. The trustor is the original trustee of the trust, and as such, retains control over the management of the assets transferred to the trust. The trustor remains the trustee until he or she resigns or becomes unable to act because of disability or death.

   In the event of resignation, disability or death, the successor trustee designated by the original trustor will become the trustee. Importantly, a trustor may revoke or amend the trust at any time.

   Trusts are important estate planning tools because properly funded, they avoid probate, avoid will contests by potential heirs and avoid declarations of incapacity.

2. Last Will and Testament. You should include a will in any estate plan to account for parts of an estate that have not been transferred to a trust prior to death. A will may either leave these assets to named beneficiaries or "pour over" the remaining assets into a previously created trust.

   Any residue not part of a trust prior to death, however, will have to go through probate unless the entire probate estate is under $50,000.

   /li> Probate is a judicial proceeding required to administer and settle an estate. Probate takes time, money, and may involve publicity and undue hassle. Therefore, to obtain the maximum benefit of any estate plan, transfer title of all assets into a revocable living trust prior to death.

3. Guardianship of Minor Children. When you have minor (younger than 18) children, your last will and testament should also be used to name a guardian of your children and a conservator over their property. This provision will help guide the court as to who should care for your children and their needs, avoiding family arguments over who is better qualified to do so.

4. Gifting. Under current Arizona and federal law, the estate of a deceased person will pay estate taxes on any property, including trust property, worth over $675,000. This amount is called the "transfer tax exemption." However, a person may "gift" up to $10,000 per year to an unlimited number of recipients without the gift counting against the transfer tax exemption. Thus, the person making such gifts retains his full $675,000 tax exemption on his estate. Depending on the size and liquidity of a person's estate, gifting can be a very effective tool to avoid unnecessary estate taxes.

5. Durable Power of Attorney. A durable or general power of attorney is a written authorization to an agent (the person who is acting on your behalf) to perform acts for you as specified by the power of attorney document. All powers of attorneys end automatically upon death of the principle and may be revoked at any time.

6. Medical Power of Attorney. The medical power of attorney creates a right for your agent to make health care decisions if you are unable to do so. This power of attorney may be revoked at any time and is inoperative at death.

7. Living Will. A medical power of attorney may or may not be enough authority for your agent to make the decision whether to keep you artificially alive through the use of machines. Therefore, many people execute an additional document called a "living will" that along with your medical power of attorney, grants your agent sufficient authority to make all medical and treatment decisions. A living will may be revoked at any time.

8. Other Estate Planning Tools. The estate planning tools dicussed are the most common, but by no means a comprehensive list. There are many other devices, which may be necessary to fit your individual estate planning needs.

9. Intestate Succession. If you die without a will and have a probate estate (worth over $50,000), your property will pass under Arizona's laws of intestate succession. Arizona intestate laws may not coincide with your wishes. Therefore, it is very important to execute a valid and binding last will and testament, avoiding unnecessary familial contention after you are gone. If you're over the age of 18, you should consider an estate plan, unless you want the government to determine how your hard-earned property will be disbursed. If you have minor children, you definitely need, at minimum, an estate plan that includes a last will and testament, durable power of attorney, medical power of attorney and a living will. Most estates should also include a revocable living trust, which then becomes the main medium for achieving the maximum benefits from your estate plan. Estate plans require periodic review to make sure they remain legally current and viable. You should also review your estate plan if your marital status has changed, your state of residence has changed, your health status has changed, your net worth has changed or if family members have been born or died. Why bother with an estate plan? Because, through proper planning, anyone can easily and painlessly establish a working estate plan, that wiill provide maximum benefits and use of property during life and for loved ones after death.