Arizona Living Trust Portfolios
Quality Living Trust Portfolios that don't cost an arm and a leg.

blog

Mike On Money

August 27th, 2025. Well it’s time to add to my blog. Seems like the Covid ordeal put a damper on posting. This blog post is about disinheritance actions. I can say very honestly that this subject is one of the most controversial consulting areas in my legal documents practice. When I am hired to draft legal documents in estate planning that limit or completely disinherit a child or grandchild, my heart starts beating faster. I have had to do it a lot over my long career and it never sets well with me. However, the dictate to create terms of disinheritance for offspring does have value in the estate planning arena.

Perhaps, more and more children, grandchildren in the past few decades have gone against the wishes of their parents or grandparents and acted in ways, (including inactions as well) that did not please the estate client who after much deliberation, has come down to dictating this legal move to remind them, after the death, that there was a cost to pay for certain habits, actions, in-actions, harmfully spoken words in anger never recalled, abandonment of visiting, etc.

I hate to see the “hammer” come down this way after a client dies, but they are in charge at the time they draft and they have their reasons to restrict or eliminate certain beneficiaries, normally their own children, who they are unhappy about their lifestyle, habits, that have hurt the estate owner/s. So it is a way to remind after a death, the true cost of their actions. (or inactions) If this is something you are exploring, I have a lot of experience in drafting legal documents (Wills, Trusts) that will help carry out your wishes to disinherit someone. Smart attorneys can contest the provisions and try to prove a “senior” was not at full mental capacity when the disinheritance clauses were drafted. Or try to prove in a formal “contest” court filing they simply forgot them.

Just know, as much as I hate doing these, I have studied for years the best terms to draft so that the decision does not get amended by a Judge in a formal court contest filing. Since 2009, Arizona trust code law is pretty liberal in this area compared to other states (such as my home state of Iowa who will let a Judge disinherit you if you even get mad at a Executor or Trustee), as it takes a formal “contest” court procedure here in Arizona and an extremely clear and egregious situation in order to lose your share of an estate you were named a beneficiary (heir) of.

I close in saying the wording in Wills and Trusts will normally in most states contain language that you are to be treated as if you (and perhaps all of your offspring) are to be treated as if you pre-deceased the descendent. I tell clients that in honest frank language, (without practicing law of course), that this pretty well means you are “dead” to the parent who disinherited you and thus, not able to get any share. Leaving other siblings to redivide the money and assets amongst themselves right in front of your eyes. (legally dead, personally very much alive).

A free 15 minute conference by Zoom or in person can discuss the general legal information pertaining to drafting such a provision in your Will or Trust with me. Call me at 1-800-782-2806 or email me at mdanderson@webfsi.com

I hope and pray this blog post does not apply to you!

M.D. Anderson

VIRUS JAIL

Jen Steph and Baby Girls.JPG

What was important to you a month ago was irreversibly changed by a sudden world wide epidemic. Going out to eat, catching a movie, attending church, enjoying a live sports event — all have been taken away from us. We find ourselves in “Virus Jail”.

This blog topic is meant to catch you “at home” where you most likely have already become stir crazy from all the restrictions on your lifestyle. What was important 30 days ago has changed. I want to give you some important tips on what you should consider RIGHT NOW to conserve your finances and yet properly protect those you love most.

Being a multi-licensed financial adviser for over four decades has taught me a lot. And, many of my hundreds of clients over the years have prospered greatly from my financial advice. Never have I seen a time to warn clients and potential clients - spending has to be altered drastically immediately to help preserve your future lifestyle (when we get out of virus jail).

I could be criticized by other financial advisers for some of these tips, but understand, most who may not like what I say DON’T have 45 years of financial experience in virtually every aspect of finance that I have. So consider this list important to implement as soon as possible, one by one until you have successfully lowered your monthly payout of expenses while still protecting your paycheck/income with a guaranteed tax free paycheck… just in case you as main breadwinner of the family does not survive whatever we have now and whatever we have coming next.

THE LIST: 10 TIPS FOR LOWERING EXPENSES WHILE PROTECTING THOSE YOU LOVE

___ 1. Cut the cable TV. You don’t need it. Our family has gotten by nicely with just Netflix and Prime and so can you. And if you want free entertainment, YouTube has more varied content than ever before to entertain you.

___ 2. Call the credit card companies, one by one and ask for a lowered interest rate on your credit card. Inform them your income has been reduced (if it has) and you will need to lower payments in order to keep paying a monthly payment to them.

___ 3. Shop around for internet and telephone services. My business uses Ring Central for 2 home lines and my toll free number for years, now the largest internet based service. And if you already cut the cord to the phone company, consider shopping around for cell phone companies. I left AT&T corporate account for a personal account at T-Mobile and got two free i-phone 11’s. And I pay less than what I was paying for two obsolete i-phones!

___ 4. Review your auto insurance and homeowners coverage. Call your agent and ask them how you can save money on premiums. Get a quote on raising deductibles. And consider dropping full coverage on older autos. But keep full coverage for glass on comprehensive for daily drivers. A new windshield can cost a fortune.

___ 5. Review your life insurance coverage. If you don’t have any private coverage away from work, consider buying low cost term life insurance to protect your family and provide tax free money in case you die. This is a guaranteed paycheck for your survivors. If you have permanent whole life or universal life (fixed or variable), FOR THE FIRST TIME IN MY CAREER, I must kindly suggest applying for new term life insurance. (You can do that with our firm) When approved, cancel your permanent policy, put the cash value in your savings account and take the tax loss on your tax return if you get back less money than you paid in. (most will be a tax loss)

___ 6. Shop around for groceries. Prices vary greatly. Warehouse pricing is lower due to larger sizes sold which gives your pantry better stock for any future food shortages. My wife still uses coupons to offset the final cost at the grocery store. You should too.

___ 7. Sell stuff you don’t want or need on free Facebook Marketplace ads, Craigslist or in some cased online with E-bay and others. You can set the rules for people coming to look for distance etc. And shipping the items off means no contact with buyers. Plus you can do it all with a modern i-phone! Regardless how you sell, put all proceeds into your saving account.

___ 8. Consider changing jobs or occupations even. Some industries are tanking while others are growing. And perhaps take a part-time or second job stocking shelves or driving delivery’s (with risk I know). Those jobs are plentiful right now.

___ 9. Update or create new legal documents to protect those you love. Our firm has both a Will Portfolio and a Trust Portfolio. For Arizona residents, we will now go to work for you with 15% down and interest free monthly payments. Make sure your spouse and children don’t get stuck with big legal bills just because you didn’t know how to properly plan your estate/s.

___ 10. Don’t keep all of your money in the bank. Banks have FDIC insurance with low reserve requirements. If push comes to shove, they have only 3 cents or so for every dollar insured to pay back to you. I have a better alternative for some of your savings with legal reserve life insurance companies. And having some alternative investments such as gold, silver or cryptos is a great way to spread risk on your reserves for an unknown future of the US dollar, or value thereto in case it is devalued or replaced.

Lastly, have faith in what you have stood strong in the past and apply all you have learned to this Virus Jail until such time we all get out and resume the lives we once had just a few weeks ago. God Bless!

M.D. Anderson, AZCLDP, Realtor, Professional Accountant, Licensed Insurance Adviser


Michael AndersonFinancial Strategies, Inc.