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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

KID INSURANCE

A local casino tells you to come and “do you”. I am sure if you went to most Arizona casinos, which I gladly stay away from — you won’t find glamourous models playing games of chance and gamblers running around with cash falling out of their pockets and purses. Instead, you most likely will see some deplorable people wasting hard-earned money on games of chance. Oh, I am sure a few successful-looking customers frequent these places. But the general rule would be people who can’t afford to lose money are there weekly losing money they can’t afford to lose. Most are hooked on the thrill of winning and ignore the reality of losing more than they win.

Now let’s change the tables over to parents of minor children. You may be new parents or are finishing off the family with your kids in college and an eventual severing of their money tether to you is imminent. I want to address all of the parents (or single parents) in this wide range so that I can ask a question.

WHAT HAVE YOU DONE TO PROTECT YOUR KIDS? YOUR SPOUSE? OR YOURSELF? From death I mean. Is it possible you have been gambling with THEIR future by denying them proper legal documents?

A few years ago, I posted a link to a great article titled 5 Lessons for New Parents. You will find it in my blog entries from 2018. Here, I want to address the most important points in the article.

  1. Do you have living documents providing for your spouse or another person to take your place to make health decisions for you or your child?

  2. If you hit a Mack truck head-on going down the freeway, and never come home again…. have you named a Guardian for your minor child/children?

  3. If you are disabled or die, who is legally authorized to manage your money? Your child’s money? You might be surprised to find that without a proper Arizona Health Care POA or Will or trust that spells out complete instructions on how you want your child/children to be taken care of financially.

  4. Do you have enough life insurance to be sure the money is there to replace your income if you are suddenly taken?

  5. Are your 401-k beneficiary elections correct? Do you know minors can’t access this money themselves once you die?

  6. Do you have a legal document that spells out continued living arrangements in your home or your guardian’s home?

  7. Did you do this planning and then let the plans collect dust for years? That might be worse than having no legal documents. Recent IRS rule changes invalidate most written plans for retirement accounts. Don’t let the kids be caught between out of date documents and perhaps, guardians you no longer trust.

Let a professional certified legal document prepare firm help you protect the kids. There is no cost or obligation to sit down with me and discuss the “family”.

MD. Anderson, AZCLDP, Realtor, Notary, Accountant, Insurance Agent

Arizona Estate Planning, Estate Plans for ParentsMichael AndersonFinancial Strategies, Inc.Wills, Trusts, Power of Attorney, Guardianship Documents, Arizona Legal Documents for ParentsComment