Importance of Powers of Attorney

The CATALYST recently hosted an insightful workshop in partnership with Desert Financial on The Importance of Powers of Attorney. This engaging and educational session helped participants better understand essential estate planning tools and how to safeguard their future wishes.

The workshop broke down the differences between several important legal documents:

• Last Will & Testament Outlines your wishes for asset distribution after death. However, a will does not avoid probate, which can be costly and time-consuming.
• Revocable Living Trust Helps control how and when your assets are distributed after death, and avoids probate, offering a smoother, faster transition for your loved ones.
• Irrevocable Living Trust Once established, this type of trust cannot be changed. It’s ideal for specific long-term planning, but comes with limitations, such as the inability to sell a home once it’s in the trust. If you wish to change your assets, you will need to change the Living Trust.

Having proper legal documents in place offers numerous benefits:

• Avoid probate delays and costs (which can take 2–3 years in Arizona and comes with a cost)
• Prepare for incapacity ahead of time
• Distribute assets to loved ones or charities as intended
• Minimize potential family conflict
• Gain peace of mind knowing your wishes will be followed

A major focus of the workshop was on Powers of Attorney (POA)—a critical component of your estate plan:

• Financial Power of Attorney Appoints someone to make financial decisions on your behalf if you become incapacitated.
• Arizona Medical Directive Communicates your healthcare wishes and appoints someone to make medical decisions for you.
• Business POA Often overlooked, this is crucial for business owners. It ensures your business can continue operating according to your preferences if you're unable to manage it yourself.

Participants learned the importance of choosing the right agents for these roles. Ideal traits include financial savvy, decisiveness, medical knowledge, and trustworthiness. It’s recommended to appoint at least three agents in succession to ensure continuity.

You may also consider appointing different individuals for financial and medical decisions or even a corporate fiduciary for added objectivity.

One key takeaway: while a Last Will is useful, it does not shield your estate from probate. A Trust, especially a Revocable Living Trust, provides greater control, faster resolution, and protection from contests. Once it’s in place, what's written stands—no one can change it or challenge your intentions.

Estate planning isn't just for the wealthy—it's for anyone who wants to ensure their wishes are honored, their loved ones are cared for, and their legacy is preserved. This workshop empowered participants to take those next steps.

If you missed the event but want to learn more about estate planning or setting up your Power of Attorney documents, The CATALYST has connections to resources to assist you.