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WILLS
WHY A WILL CAN’T WAIT National statistics reveal that a majority of Americans die without a Will. Understandably, losing a loved one brings great pain to a family. If that loved one died without a Will, many unnecessary hardships can further burden the family. Without a Will, much of what a person has worked hard for all of his or her life is left to individuals decided beforehand by the state legislature, and those individuals may not be the ones you would have named in the Will that didn’t exist. WHY DO I NEED A WILL? A Will is a legal document which allows you to put your personal and property affairs in order prior to death. Every adult should have a Will to state clearly and properly the desired disposition of their home, money, and other assets upon death. Your Will also identifies who will administer your estate, (the Executor), how your assets will be distributed and who will serve as guardian for any minor children. Attorneys-at-law are trained to write Wills which accurately set forth your intentions. A carefully drafted Will prepared by an attorney will ensure that your wishes are clearly stated so that they will be carried out according to your directions, that is, as you will it, not as state laws do. WHY SO MUCH RELUCTANCE TO MAKE A WILL? People have varied reasons for not having a Will. None are valid. Many think there is plenty of time to take care of it later. Some don’t think they have enough assets to require a Will. Others assume their family will carry out their wishes after they are gone. Some assume that a Will costs too much even though they haven’t looked into it. Some people won’t consider a Will because it brings up
the reality of death – an uncomfortable topic for many. A greater discomfort, however, is the possibility that we
have not fully provided for our loved ones and in fact may be leaving a terrible
mess which can split families apart, cause undue taxes and place children in the
care of people you wouldn’t have chosen.
A Will can’t wait; only
you can make it happen; act soon. WHAT HAPPENS IF I
DIE WITHOUT A WILL? State law deals uniformly with all instances of an individual’s death without a Will. No consideration is given to the special needs of any individual or family. Your money and possessions will be distributed according to a formula fixed by law which means that your spouse may have to share assets with other family members that you may not have named in your Will. Dying without a Will could also lead to your minor children being placed in the care of a guardian appointed by the court and not necessarily the person(s) that you would have chosen to raise them. These are some of the more important reasons for having a valid Will to provide for the disposition of your property and the appointment of people you have chosen to raise and care for your children. HOW DO I GO ABOUT HAVING MY WILL PREPARED? If you do not have an attorney call the toll free number, 1-800-232-1477. A Will intake form will be sent to you and after you have filled it out, an appointment can be scheduled. There is no fee for the time you speak with a lawyer about your Will. If you live outside the immediate tri-state area, the Legal Care Plan will try to connect you with a lawyer in your area. In PA, you may also call the Pennsylvania Bar Association’s Lawyer Referral Service at 1-800-692-7375 or call your local bar association. You will be closer to peace of mind in knowing that your wishes and intentions are clearly stated in a well-drafted, valid and enforceable Will, and that those directions will be carried out. CAN I WRITE MY OWN WILL? Some individuals opt to write their own Will utilizing standardized kits or computer software programs instead of using an attorney-at-law. While any Will may be better than no Will at all (and this may not always be true), do-it-yourself kits must be used with caution. Writing a Will involves judgment and skills acquired only through professional training and experience. Certain words have a “legal” meaning different from a non-lawyer’s understanding of the same word. There have been Wills where punctuation improperly used or left out has lead to litigation. No one wants that to happen. Drafting a Will also requires knowledge of federal and state tax laws. Form Wills can not, for example, provide the special provisions needed to create a tax shelter, Trusts needed to reduce or avoid federal estate taxes or to provide for a ‘special needs’ Trust for a handicapped child or grandchild. A Will that is not skillfully drafted could result in: (a) your estate being distributed in a manner contrary to your wishes; (b) lead to unnecessary legal costs if challenges are raised by disgruntled heirs; (c) possible payment of taxes that might have been avoided. WHAT ABOUT COSTS? There is no universal fee for the preparation of a Will. The fee will depend upon your family and financial situations and your wishes. Most attorneys offer an initial consultation where they speak with you about your needs and then estimate the costs based on those needs. There is a Will called a ‘simple Will’ and it usually has a fixed fee – during the year 2000, the FAMILY LEGAL CARE PLAN is offering a simple Will (a Mill-Will to mark the 3rd Millenium) for $50.00. There are also Wills with special provisions that require more time and are called complex Wills and the fee may be higher than that of a simple Will. Having a properly prepared Will is relatively inexpensive and may save your estate substantial amounts in taxes and probate expenses. The price for the peace of mind a Will provides is small compared to not having a Will which could be very expensive. I ALREADY HAVE A
WILL – AM I COVERED? In most cases, estate planning is not a "once in a life time event" but rather an ‘on going’ matter for review to respond to changes that may have affected your life circumstances. A Will should be reviewed periodically to see if any changes, such as an increase in the value of your assets, the birth or death of a beneficiary, a marriage or divorce, or a change in estate or tax laws, and others, suggest the need to change your Will. How old is your Will? Is it a self proving Will (avoiding the need to locate witnesses later)? Does it name beneficiaries who have died? Do you know who would receive that deceased beneficiary’s share? Wills are not filed (probated) until after death so you can change or update your Will throughout your life as circumstances require. Its terms are kept confidential until after death when it is filed with the Register of Wills or Surrogate Office unless you choose to reveal its contents to someone. When a change to your Will is necessary or desired, your lawyer and you can meet to make those changes by a Codicil (an amendment to the Will) or by preparing a new Will. IS A WILL THE ONLY
DOCUMENT I NEED? To adequately deal with
all issues relating to the transfer of property at the time of death, you may
need to undertake more extensive "estate planning." Consideration
should be given to the manner in which assets are titled, whether the federal
estate tax is a factor, the amount of state inheritance and income taxes that
will be due at the time of death, and whether assets should be held in trust or
given outright to your intended beneficiaries. Other issues relating to the
ultimate disposition and taxation of your estate should also be reviewed.
Failure to do so could unintentionally make UNCLE
SAM a beneficiary and possibly to the tune
of hundreds of thousands of dollars. Although a Will is a good start, you may want to consider Estate Planning Tools such as a Tax Shelter Trust, a Living Trust, a Life Insurance Trust, a Durable Power of Attorney, an Advance Health Care Directive (Living Will) and other estate planning tools. All of these documents should be considered and discussed with your attorney so that your estate plan is tailored to fit your individual needs and intentions leaving no “dangerous gaps” that could create financial and emotional hardships. Ó 2000 James
W. Pearson, Jr., All Rights Reserved FOR ADDITIONAL INFORMATION 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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