Legal Question in Wills and Trusts in Arizona

Re: Hubby owns biz- what if he dies?

This question seems simple, but the answer is somewhat complicated. Avoid the complications by having your husband make an estate plan with a will or trust. Seriously, why would he not?

His share of any community property would go to his heirs, if no will, upon his death. What is community property or what is not is a factual matter, it depends upon various facts, and may not be clear cut. When people leave things open to interpretation, intestacy laws or a judge's opinion they take the hard road, and the result may not be guaranteed.

You also might not be the only heir. Does your husband have any children which are not your legal children? If so, they are heirs as well.

In general, a business initiated during the marriage, purchased with community funds, worked with labor during the marriage, will probably be community property regardless of whether your "name" is on legal contracts or documents associated with the business. No complete answer can be given to your situation without a consultation with an attorney who is presented with all the facts and can ask questions. See an estate attorney, and avoid the issue of whether or not someone gets this or that, and avoid a controversy after death.

Caveat: Some men won't spend a small amount of legal fees to get a proper estate plan, because they delude themselves into thinking that they will never die in the next few years, and would rather spend it on sports tickets, gambling, partying, cars, or whatever. Women usually are more tuned in to security, and want arrangements in place to avoid some unexpected financial or legal problem, especially when it comes to their financial future.

Get an estate plan now. It really does not cost that much, and is pretty much tax deductible. We are all going to die sometime, and some will so do before they expect. Also, the estate plan properly drafted provides for powers of attorney if someone is ill or in an incapacitating accident, becomes incapacitated, etc., and provides for avoidance of probate, guardianship, etc. Protect yourself.

Good luck. P.S. We offer free initial consultations for estate clients.