FAQ
Please remember that the answers provided in the spirit of public education, not as legal advice. If you require legal advice for a particular situation, you should consult an attorney.
Why do I need a will?
-
You have minor children.
You should write a will in order to appoint guardians for your minor children, and trustees to manage their property. If you do not leave a will, the court may appoint a guardian whom you would not have chosen.
-
You have no children.
Do you know what would happen to your property if you died right now without a will? You might be surprised to find out that your spouse might not inherit everything. If you and your spouse have no children, your parents or siblings might inherit part of your home and become co-owners with your spouse. Your spouse would not be able to sell the house or other property without their permission, and vice versa. If you want to remember your parents or siblings in your will, it is best to leave them specific pieces of property that they will not have to share with your spouse. A will can accomplish this.
-
You have a large family.
All of your heirs will become co-owners of every asset you own, and will have to manage all the property together. They may not live in the same state, or they may not be able to agree on what should be done with the property. The more heirs you have, the more money and effort they will have to spend trying to get organized. With a will you could leave specific assets to specific heirs, or put one heir in charge as trustee for the others. Either way, writing a will would save your heirs significant hassle and expense. It could also prevent major feuding.
-
You own real estate.
In the absence of a will, real estate may be inherited by minors or numerous co-owners, and either result will be costly. A little estate planning now can save you heirs significant expense and trouble later.
-
None of the above.
Even if you do not think you need a will, you should still see an estate planner to draw up powers of attorney for health care and financial matters. If you become incapacitated by illness or accident, a power of attorney will be critical to allow a friend or loved one to pay your bills and make health care decisions for you. These simple documents not only save money later, but they give you the security of knowing things will be taken care of in your absence.
What is a Power of Attorney?
A Power of Attorney is a legal instrument that is used to delegate legal authority. The person who signs a Power of Attorney is called the Principal. The Power gives legal authority to another person (called an Agent or Attorney-in-Fact) property, financial and other legal decisions for the Principal. The word attorney refers to anyone authorized to act on another's behalf. It is not restricted to lawyers.
A Principal can give an Agent broad legal authority, or very limited authority. Attorney is frequently used to help in the event of a Principal's illness, etc.
What is Estate Planning?
Put in its most simple terms, estate planning involves putting your affairs in order so as to maximize the benefits that your assets can provide to you during your life and to those you desire to benefit from it after your death.
Estate planning is a process that has three objectives in mind:
- To insure that your assets will pass at your demise to those persons you designate in a manner which will give them the maximum benefits;
- To reduce or eliminate the tax burden on your estate.
What Does A Proper Estate Plan Include?
A proper estate plan to provide for the needs of your family may include:
lnk