1.New Year's Resolution: Put your Will, Power of Attorney and Estate Planning in order.
Don't put off having a proper Will prepared and your Estate Planning. With a Will we can save the family over $1,000 with a no bond required clause and self-proving Affidavit. Our office can typically prepare your Will and provide the documents within three weeks of payment. Many persons have put this off for thirty years. Don't wait until you are in the hospital to think about taking care of your family.
2. You need a Power of Attorney.
A Power of Attorney is a written document in which a competent adult individual (the "principal") appoints another competent adult individual (the "attorney-in-fact") to act on the principal's behalf. In general, an attorney-in-fact may perform any legal function or task, which the principal has a legal right to do for him/herself. You may wish to sign a Power of Attorney giving your spouse, children or partner the power to handle your affairs if you become ill or disabled. More info at http://www.njlaws.com/power_of_attorney.htm
An important part of lifetime planning is the Power of Attorney. The power may be limited to a particular activity (e.g., closing the sale of your home) or general in its application, empowering one or more persons to act on your behalf in a variety of situations. It may take effective immediately or only upon the occurrence of a future event (e.g., a determination that you are unable to act for yourself). The latter are "springing" Powers of Attorney. It may give temporary or continuous, permanent authority to act on your behalf.
Why would anyone give such authority to another person? The most important reason to use Power of Attorneys to prepare for situations when you may not be able to act on your own behalf due to incapacity, illness or absence. Such a disability may be temporary, for example, due to accident, or illness or travel, or it may be permanent. If you are buying or selling assets and do not wish to appear in person to close the transaction, you may take advantage of a Power of Attorney.
If you do not have a Power of Attorney and become unable to manage your personal or business affairs, it may become necessary for the family to have to spend $4,000 for a Guardianship Complaint and petition the Superior court to appoint one or more people to act for you. People appointed in this manner are referred to as guardians, conservators, depending upon your local state law. Few people want to be subject to an expensive public proceeding in this manner so being proactive to create the appropriate document to avoid this is important. A Power of Attorney allows you to choose who will act for you and defines his or her authority and its limits.
Who Should Be Your Agent in a Power of Attorney?
Most people choose a family member to act on your behalf. Many people name their spouses or a child. We do not prepare Powers of Attorney with Joint agents.
You should always name a successor person to address the possibility that the person you name as agent may die, be unavailable or unable to act when the time comes. Similarly, in a Will there is Executor #1, then an Executor #2, not joint executors.
There are no special qualifications necessary for someone to act as an attorney-in-fact except that the person must not be a minor or otherwise incapacitated. The best choice is someone you trust. Integrity, not financial acumen, is often the most important trait of a potential agent.
Finally, there may be reasons not to limit the gifts your attorney-in-fact may make to annual exclusion gifts in order to facilitate Medicaid planning or to minimize or avoid state estate tax beyond what annual exclusion gifts alone might permit.
[Kenneth Vercammen is Chair of the ABA Estate Planning, Probate & Trust Committee of the American Bar Associations Solo Small Firm Division with over 20,000 members.}
You also need a Living Will/ Advance Directive. Modern medicine and machinery can keep a person alive for long periods of time. Sometimes a person is often kept alive in pain or under circumstances that render him or her unconscious as to everything around them, while causing pain and anguish to the family.
Our state has passed a "Living Will" law, often called a "Death with Dignity" law, which allows a person to direct that heroic measures not be taken to prolong life in these unhappy situations.
This "Living Will" is different than a regular Will, which affects property rights. The "Living Will" is an independent document to be signed in addition to your regular Will. Please let us know if you want a Living Will/ Advance Directive prepared.
