Creating an estate plan is the best way to safeguard your family’s future. However, simply drafting one is not enough. You must ensure that every document you create is legally valid under Arkansas law. If your documents do not meet state-specific requirements, you may experience challenges in court. This may lead to financial loss and uncertainty for your heirs.
Executing documents properly
Arkansas law has specific requirements for executing estate planning documents. For example, you can only create a valid will if you are at least 18 and of sound mind. Your will should be in writing, and you must sign the document (or someone else at your direction and presence). In addition, you must have two credible witnesses who also sign the will in your presence.
In Arkansas, you must sign or acknowledge financial power of attorney before a notary public. On the other hand, healthcare directives require signing in the presence of two qualified adult witnesses or a notary public. Failing to follow these rules can render your documents invalid.
Establishing testamentary capacity
You must have testamentary capacity when creating your estate plan. This is the legal and mental ability of a person to make or change a valid last will and testament. A document can become invalid if you lack this capacity.
A court can measure your capacity using a standard test, which requires that you accomplish the following:
- Understand the act: You need to have an awareness that you are creating a will and what the document will do.
- Know the property: You must comprehend the nature and value of your own estate.
- Recognize your beneficiaries: You can identify family members, dependents or other beneficiaries.
Another party can challenge your capacity. Proper execution of your will with credible witnesses can help demonstrate you understood your actions.
Updating your estate plan
Lastly, do not forget to revisit your will regularly. Life changes such as marriages, divorces and deaths can affect your estate plan’s effectiveness. Similarly, changes in financial circumstances can render your estate plan obsolete.
Arkansas law automatically revokes certain provisions when circumstances change. For example, divorce typically revokes provisions favoring a former spouse. Reviewing and updating your documents every few years ensures they reflect your current wishes and circumstances.
The best time to plan for the future is the present. If you have questions about whether your documents are valid or properly prepared, seek legal guidance.