WILLS AND ESTATE
PLANNING
"SAVE MONEY AND PROVIDE FOR YOUR LOVED ONES "
By Kenneth A. Vercammen, Esq.
As average Americans, we work 80,000 hours in a lifetime, or
45 to 55 years. In spite of all the
resources and assets we earn, the vast majority of us do not take the time to
create a Will.
National statistics indicate that 80% of Americans die
without leaving a Will. There are
several reasons for this: fear of death; procrastination; and misinformation
(people presume that only the rich need to have Wills). Whatever the excuse, it is clear that people
would benefit from having a Will.
In the absence of a Will or other legal arrangement to
distribute property at death, the state must step in to administer the
estate. The result can be lengthy delays
before the rightful heirs receive their property. And because the state has no instructions
from the deceased, no charitable gifts will be made.
IF YOU HAVE NO
WILL:
If you leave no Will or your Will is declared invalid
because it was improperly prepared or is not admissible to probate:
* State law determines who
gets assets, not you
* Additional expenses will
be incurred and extra work will be required to qualify an administrator
* Judge determines who
gets custody of your children
* Possible additional
State inheritance taxes and Federal estate taxes
* If you have no spouse or close relatives the
State may take your property
* The procedure to distribute assets becomes
more complicated-and the law makes no
exceptions for persons in unusual need or for your own wishes.
* It may also cause fights and lawsuits within
your family
When loved ones are
grieving and dealing with death, they shouldn’t be overwhelmed with Financial
concerns. Careful estate planning helps
take care of that.
THE FOLLOWING IS A SAMPLE OF A VARIETY OF CLAUSES AND ITEMS
WHICH SHOULD BE INCLUDED IN A WILL:
1ST: DEBTS AND TAXES
2ND: SPECIFIC
BEQUESTS
3RD: DISPOSITION TO SPOUSE
4TH: DISPOSITION OF
REMAINDER OF ESTATE
5TH: CREATION OF
TRUSTS FOR SPOUSE
6TH: CREATION OF TRUST FOR
CHILDREN
7TH: OTHER
BENEFICIARIES UNDER 21
8TH: EXECUTORS
9TH: TRUSTEES
10TH: GUARDIANS
11TH: SURETY OR BOND
12TH: POWERS
13TH: AFTERBORN CHILDREN
14TH: PRINCIPAL AND INCOME
15TH: NO ASSIGNMENT OF
BEQUESTS
16TH: GENDER
17TH: CONSTRUCTION OF WILL
18TH: NO CONTEST CLAUSE
A Will must not only be prepared within the legal
requirements of the New Jersey Statutes but should also be prepared so it
leaves no questions regarding your intentions.
WHY PERIODIC REVIEW IS ESSENTIAL
Even if you have an existing Will, there are many events
that occur which may necessitate changes in your Will. Some of these are:
* Marriage, death, birth,
divorce or separation affecting either you or
anyone named in your Will
*Significant changes in
the value of your total assets or in any
particular assets, which you own
* A change in your
domicile
* Death or incapacity of a
beneficiary, or death, incapacity or change in residence of a named executor,
trustee or guardian of infants, or of one of the witnesses to the execution of
the Will
*Annual changes in tax law
MAY I CHANGE MY
WILL?
Yes. A Will may be
modified, added to, or entirely changed at any time before your death provided
you are mentally and physically competent and desire to change your Will. You should consider revising your Will
whenever there are changes in the size of your estate. For example, when your
children are young, you may think it best to have a trust for them so they do
not come into absolute ownership of
property until they are mature.
Beware, if you draw lines through items, erase or write over, or add
notations to the original Will, it can be destroyed as a legal document. Either a new Will should be legally prepared
or a codicil signed to legally change
portions of the Will.
SAVE MONEY
Your estate will be subject to probate whether or not you
have a Will and in most cases, a Will reduces the cost by eliminating the
requirements of a bond. With a
well-drawn Will, you may also reduce
death taxes and other expenses. Don’t
pinch pennies now to the detriment of
your beneficiaries. We have attempted to briefly explain in this article
some of the issues, techniques, and decisions involved in Wills, Estate
Planning, and Administration of an Estate.
Because the matters covered are complicated and the Federal and New
Jersey laws frequently change, this
article can only outline some of the many legal issues you should consider.
The proper
preparation of a Will should involve a careful analysis of the client’s assets, family and his/her
desires.
Estate Planning is the process of examining what will happen
to your property when you die and arranging for its distribution in such a
manner as will accomplish your objectives.
The cost of a Will depends on the size and the complexity of
the estate and the plans of the person who makes the Will.
A properly drawn Simple Will without Trust costs
approximately $200.00 to $500.00. It is one of the most important documents you
will ever sign, and may be one of the best bargains you will ever have.
Be sure your Will takes into account the Federal Tax changes
and New Jersey Inheritance Tax changes.
Also, ascertain if your Will is “self-proving”, which would dispense
with having to find the Will’s witnesses after death.
WHAT IS A WILL?
“A Will is a Legal
written document which, after your death, directs how your individually
owned property will be distributed, who will be in charge of your property
until it is distributed and who will
take care of your minor children if the
other parent should die ". You
should remember that the term “property” under the law includes "real
estate as well as other possessions and rights to receive money or items of
value.” Everyone who has at least $3,000
in assets should have a Will. You do
not have to be wealthy, married, or near death to do some serious thinking
about your Will.
ADMINISTRATION
OF AN
ESTATE
If you are named the executor or executrix, you must visit
the County Surrogate to probate the Will.
You will need the following items:
1. The Death
Certificate
2. The Original Will
3. Names and Addresses of decedent's, next of kin and list
of beneficiaries
4. Minimum of $130.00 for Surrogate fees
A NJ state
inheritance tax return must be filed and the tax paid on the transfer of real
or personal property within eight months after death.
OTHER ITEMS OF CONCERN TO
BE PREPARED BY YOUR ATTORNEY
-Trusts (and Medicare
Trusts)
-Power of Attorney- to
allow a trusted person to administer
your assets during your lifetime, either
upon disability or now
-Living Wills- to state
your wishes concerning medical care in
the event of your serious illness
Kenneth A. Vercammen is a Middlesex County trial attorney
who has published 125 articles in national and New Jersey publications on
litigation topics. He has been selected
to lecture to trial lawyers by the American Bar Association, New Jersey State
Bar Association and Middlesex County Bar Association.
Call our
office to schedule a confidential appointment 732-572-0500
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