Wills

Most everyone knows that wills are legal documents that specify directions for the disposition of property after the death of the person who makes the will. Wills may also specify certain other instructions or wishes which can be followed by those people who are appointed to administer the estate of the person who dies.                                                                                                                What many people do not realize is how important and technical the requirements for making a will are, and then once a will is made, how important it is that changes to a will be made with even more adherence to strict requirements. Naturally, the laws regarding wills vary from state, and some states will require that wills be notarized while other states do not recognize a notary and instead, the will must be witnessed by two or more witnesses.
The complexity of the document needed to successfully execute this, thus creating peace of mind during life, depends upon each individual’s needs or circumstances, such as needing to care for a mentally incapacitated family member that you act as guardian for And wishes or preferences, such as putting money into a trust for a family member until they are married for five years.

The following provisions are typically part of most Wills:

• Appoint a personal representative to manage your affairs (account for and distribute your property according to the terms of your will/last wishes);
• Specify a reasonable number of bequests of personal property (e.g. your 1963 metallic mint green Pontiac Tempest)  that you would like to leave to a loved one;
• Leave the balance of your entire estate to your spouse and your children (if none of your immediate family survives you, leave the balance of your estate to a specific person(s) or organization(s) provided the balance of assets is divided equally among all beneficiaries);
• Appoint a trustee to manage the financial affairs of your beneficiaries (up to the age of 35); and
• Appoint a personal guardian who is lawfully invested with power and charged with the specific duty of taking care of your minor children (under the age of 18).

The following circumstances may benefit from consulting with an attorney when preparing a will.  

• significant net worth in excess of the current IRS estate tax limit and would benefit from tax planning, or the estate is subject to current state or federal estate taxation;
• ownership of a business that will continue in operation after death;
• a legal heir who is unable to manage his or her own affairs (such as a mentally handicapped child);
• potential conflict between children, stepchildren and/or Illegitimate children.

Preferences
Sometimes you may have a preference as to the distribution of assets, to whom and how.  Non-standard or uneven division of property to legal heirs is generally outside the scope of a Simple Will.  However, these are usually preferences and not “needs” so you may choose to forego the distribution preference in favor of saving legal fees by opting for a simpler Will instead.

Some of the preferences that may NOT be addressed in a simpler Will include:
If you wish to…

•     place restrictions on what heirs may do with the property;
•     distribute assets unevenly;
•     include charitable organizations in the will;
•     exclude any lawful dependent(s);
•     include numerous specific bequests or specific bequests of real estate or financial assets;
•     include organ donation provisions;
•     specify burial or funeral instructions

DOWNLOAD A sample copy of a will.

Living Wills and Healthcare POA

Creating a plan for the care and welfare of your life and that of your family as you grow older can be called a life care plan. This plan is not a legal document, although it embodies legal concepts.

Although the purpose for creating such a plan may be to enable Americans to commence the thinking process with respect to getting older, it can be argued that this kind of planning could also help to prevent major legal problems if you suffered an unexpected catastrophic injury or illness, such as a car accident, or a stroke, or a medical diagnosis of cancer. Everyone has heard stories of young career men and women, without any warning whatsoever, diagnosed with cancer. Naturally, many of them had never given anything more than a passing thought to such an event, and, of course, no planning or preventative measures had been taken.

Thus, whether you are thirty or eighty, there are steps you can take to help your family avoid hassles and preserve your assets. There are a number of methods by which to plan in advance for the possibility that certain medical conditions may happen to you or a member of your family. Legal documents such as Living Wills and Durable Powers of Attorney For Healthcare can help you immensely.

A Life Care Plan is nothing more than considering these legal mechanisms already discussed, along with other things which as you get older you may wish to consider. Considering these things now may help to answer certain questions, such as who do I trust with my bank account information? Or who will take care of my children if something happens to my spouse and me? Or should a particular person know my medical history?

These types of questions arouse much thought, but too often, not enough preventative activity. There is no special format to a life care plan, and the one we will discuss may not be as complete as others. We are certain, however, that taking some time to consider this will help you help your family.

DOWNLOAD A Sample Living Will

DOWNLOAD A Sample Healthcare POA

Trusts                                                                        

Legally, a trust can be defined as a legal instrument which creates an entity, whose identity is legally separate from that of the creator. Usually a party who creates a trust, the Trustor, transfers title to some or all of his/her property, in trust, to another person, the Trustee, to be held for the benefit of either the Trustor or one or more third parties, known as beneficiaries. This transfer creates a situation in which title is held in more than one manner - legal title is held by the Trustee, and equitable title is held by the Trustor or beneficiary(ies).

Generally stated, a trust is an agreement between the Trustor and Trustee, whereby the Trustee agrees to administer and distribute the property, along with the income from the property, as specified in the trust agreement. Commonly, beneficiaries are specified in a trust agreement and the agreement usually specifies who should receive what assets or proceeds from the trust on the death of the Trustor, or sometime thereafter.

Sometimes the trust will enable the beneficiaries to receive Trust income during the life of the Trustor, and sometimes no property is transferred to the beneficiaries until the Trustor dies. Often the Trustee is instructed in the Trust Agreement to withhold any distribution of trust income or property until each of the beneficiaries reaches a certain age. There are as many differences in trusts as there are trusts, but this overview will help you to visualize the process.