Being prepared for your unknown future:
On September 11, 2001, thousands of Americans and Immigrants went about their normal work-day routines, and became victims of the unexpected. Who can forget that fateful day when foreign terrorist attacked our country, and disrupted the lives of thousands.
- 2,792 people were killed by terrorists who attacked our country
- 74% of these people did not have a Will
- Hundreds more were mortally wounded and did not have a Durable Power of Attorney, or an Advanced Healthcare Directive
- An even greater number did not have a Living Will
Aside from the obvious tragedy of the loss of life and continued suffering of those who survived, is the ongoing legal battles the family members of those survivor’s face in trying to assist in the medical decision making. In most states, if there is no advanced healthcare directive or living will on file and available to help guide medical decision making when the patient is unable to, family members have difficulty overriding or directing the medical decisions. These problems can be compounded when the patient is an unmarried adult with minor children, or a twice married adult with adult children from the first marriage, and none with the current spouse.
I’m not speaking of the potential legal problems surrounding this example, but instead trying to paint the picture of one very real potential family fight. In 2014, The American Bar Association estimated 68% of North Americans still did not have a Will! Some companies in the legal service industry were bothered by these findings, and decided to try and find out why so few people were prepared for these unexpected medical situations. Here are some of what they found:
Some Common Reasons Given:
- I don’t own anything
- I’m not that old
- I don’t have any money
- Wills and advanced directives cost too much
- I don’t have a Lawyer
- My significant other will handle everything
- My family will handle everything
The Importance of Organizing Your Affairs:
Proper organization of your affairs will go a long way toward easing the burden upon your love ones. Your incapacity or death will most likely be very traumatic for your loved ones, but you can lessen the impact.
Durable Power of Attorney for Property:
- A document for the living
- Governed by State law
- Allows you to appoint someone you know and trust to look after your finances, in the event you become unable to do so
- Always choose an equally trusting alternate
Durable Power of Attorney for Health:
- A document for the living
- Governed by State law
- Allows you to appoint someone you know and trust to make decisions regarding your health and personal care matters, in the event you become unable to do so
- Always choose an equally trusting alternate
Living Will:
- Often referred to as an Advance Healthcare Directive
- Also, a document for the living
- Crucial in cases where the physician believes there is little or no chance of recovery
- Expresses your wishes regarding life support measures and artificial or heroic measures
- If you don’t already have one, its best to consult with your physician and or attorney before preparing one.
- Can be revoked at any time, as long as you have capacity. If you rip it up, its gone.
Last Will and Testament:
This is a document for the deceased, but must have been prepared prior to your death to be valid. It is a pivotal foundation to your estate planning. This document puts in place a way to ensure that the assets that you worked so hard for during your life are distributed, without conflict, to those whom you choose to benefit from your estate.
Distribution of Personal Effects:
You can specify the distribution of your personal effects through the use of a Binding Memorandum.
This binding memorandum would be incorporated by reference in your Will.
Such a memorandum cannot be changed unless you prepare a proper legal amendment to your Will know as a Codicil, unless you prepare a brand-new Will.
Gifts of Money:
- Can only be disbursed after all debts and taxes are paid
- You must make sure your estate will contain enough money
- It is prudent to name a substitute beneficiary in the event the primary beneficiary passes before you
- Take steps to avoid an unintended double legacy
Charitable Gifts:
- Make sure the charity is correctly named in your Will
- Name an alternate charity in case the one you name is non-existent at the time of your death
- Make sure the gift is earmarked to the organization, and not a named individual
Residue:
We’ve covered giving specific gifts of personal items, and we have covered giving gifts of money. Residue is what is left of the estate after we subtract your administrative expenses, gifts of money, debts, and taxes.
It is common for each spouse to leave the entire residue to the other and upon the deaths of both spouses, the residue is usually split among the children in equal shares.
Be very careful leaving your entire residue of your estate to a spouse in a second marriage situation. Doing so could lead to a fight between your spouse and the children of your first marriage.
If you die without a Will:
- Without a spouse, child or next of kin, everything you own could be taken by the State
- No executor is appointed
- There is no one in place to look after your estate, or your minor children
- A friend could apply to the court (at their own expense) to obtain authority to act as your executor
Can you make up your own Will?
Sure, you can, but…
- Are you familiar with your State Laws?
- Do you have legal capacity?
- Will the Will you prepare comply with your state laws?
- Do you understand the nature of your assets?
- Is your Will being done freely and voluntarily?
- Do you have someone that you know and trust to act as executor/executrix, to make sure your wishes are carried out?
Is the Will that you prepare capable of surviving a legal challenge from a significant other or family member, in a Court of Law?
A Possible Solution:
Consult with an attorney or a more affordable legal service company, to have the forms prepared by someone with the staff and experience to assist you.
Another Possible Solution:
Enroll in one of the group prepaid legal plans and get a Will and Power of Attorney prepared by a law firm for no additional cost.
How much do they cost?
Some group legal plans start as low as $26 DOLLARS PER MONTH!
That’s only .87 CENTS PER DAY!!
A Benefit of Legal Plan Membership:
Some pre-paid legal plan companies will prepare a standard will and general power of attorney at no additional cost to your enrollment fee, if you do them both at the same time. Plus, they will update an existing Will at no additional charge.
Conclusion:
All of the documents previously discussed are available from most office supply stores, or can be purchased online or through software programs. They are legal in most states as long as they follow the formula set by your individual state law.
The American Bar Association estimates that it requires between 2-3 hours (from draft to completion) to prepare a Will. If you multiply that estimate by your lawyer’s standard hourly rate, you will see that a Will can be very costly. You can certainly save money by preparing your own Will, but will a notarized signature survive a court challenge initiated by an angry family member? Fortunately, there is another option. Some prepaid legal plans provide a Will and Power of Attorney to the member at no additional charge, and to the significant other for a small fee.
Disclaimer:
I am not an Attorney and I have not given you legal advice. I do however, recommend you consult your own professional legal advisor before attempting to prepare any of the previously discussed documents. I strongly advise you to have a professional prepare or review these very important and necessary documents.
REFERENCE
THE FAMILY FIGHT
Authors: Barry Fish & Les Kotzer
Wills and Estate Attorneys
www.familyfight.com
Anyone viewing this post who may wish to know more about pre-paid legal plans, can do so at: Allenkyle.legalshieldassociate.com.