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AN INTRODUCTION TO WILLS
Your decision to have your Will prepared or updated is wise.
Many people put off doing a Will for a variety of reasons such as
"we don't have much, just our home", "we have no children",
"the children are all grown", "everything is in our joint
names", etc.
It is important to know that if you do not have a Will, the state has written one for you naming the people, by relationship,
who will receive your assets. This is called intestate (without a Will)
succession. It could very well
distribute your assets to people you
would not have chosen.
Your Will also names the Executor who will manage your estate during its
administration then close it after complying with the terms of the Will and
applicable federal and state law. If you die without a Will, the Register of
Wills appoints an Administrator. Without
a Will, the result could be the appointment of a person you
would not have chosen.
The same applies in choosing guardians for the care of any children until
age 18 and their money until they reach 18 or 21 as you specify.
If you do not name the guardians, the court will do so appointing people you
may not have chosen.
A Will must be in writing, be identified as a Will or clear that it is a
Will and must be signed at the end. I
recommend that it be dated, witnessed and have a notarized affidavit as to the
signature of the maker of the Will ( Testator or Testatrix ),and the witnesses. An individual’s Will is not recorded during the lifetime of the Testator. It is filed with the Register of Wills only after death; the word "probated" is used to indicate that the Will has been filed and that it has been accepted by the Register of Wills/Surrogate’s Office.
A Will can be changed by a new Will or an amendment called a Codicil. A Codicil must
conform to the same requirements as a Will, i.e., it must be in writing and
signed at the end. Do not write on your
original Will thinking that it effectively changes the terms of your Will. It
will only cause problems.
It is recommended that your Will be reviewed between the fourth and fifth
year or earlier if there have been changed circumstances.
In the case of changed circumstances, it is suggested that you call to
see whether or not changes to your Will are indicated.
Some examples of changes include, marriage or divorce; having children,
changing executor or guardians; moving to another state; changes in property
ownership; changes in the tax laws, family deaths or desired change in
beneficiaries or amounts, etc.
Finally, concerning do-it-yourself Wills, there are advertisements and
books that purport to tell you how to write your own Will using a standardized
form with blanks to be filled in by you. The
costs may seem appealing. Under
certain circumstances they might work but they may also create serious problems.
Writing a Will involves judgment and skill acquired only through the
training and experience that a Lawyer receives.
It also requires a knowledge of the laws. Using a pre-printed form to
write your own Will does not give you the opportunity to learn about the many
choices and the consequences of selecting one over another.
A lawyer skilled in estate matters is qualified to avoid the pitfalls and
advise you on various questions and issues that must be decided and at the same
time impart knowledge to you that is important and useful.
The language of a Will is unique. Incorrect
use of words may cause distribution of an estate in a manner not intended.
There are even cases where the outcome has turned on an interpretation
due to the "lack of" or the "presence of" a comma in a
sentence. The lawyer will answer your questions about particular legal requirements and laws governing the distribution of your estate through the Will as well as ways to reduce or avoid inheritance and or federal estate taxes and probate costs when possible.
To mark the Third Millennium,for the entire year 2000,a single simple
will, called a “Mill-Will”
will cost $50 per person. A simple
Will distributes assets to a surviving spouse and adult children.
If special provisions like a children’s education trust or a life
estate in real estate, or other special terms are provided then the fee may be
more depending on the degree of complexity.
You may wish to discuss the advisability of a tax shelter Trust or an
educational Trust for your children’s education, maintenance and welfare up to
and after high school graduation. Very
often peer pressure and the lure of the "world" will persuade a young
person not to pursue higher education when they suddenly inherit a large sum of
money. In today's economy, a modest
estate could easily consist of several hundred thousand dollars and that may be
more money than a youth of 18 can maturely handle.
The cost of a trust depends on its type and complexity. See the section on trusts for a summary of the many types.
There are also lifetime transfers which can avoid or reduce some of the
costs associated with probate (and sometimes avoid probate entirely) such as
living trusts, totten (tenative) trusts; deeds and leases.
I will be glad to discuss these issues with you.
I look forward to meeting you and serving your needs in this important
area of estate planning. Ó 2000 James W. Pearson, Jr., All Rights Reserved CALL THE TOLL FREE HELP LINE 1-800-232-1477 E-mail: lawyer@lawwalk.com JAMES
W. PEARSON, JR. Chair of the Federal & State Credit Union Department & Coordinator of legal consultations under the Family Legal Care Plans offered to credit union members. |
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