!n the a'sence of a (ill or other legal arrangement to #istri 'ute "ro"ert y at #eath, the )tate may ste# in to a#mi nister the estate an# #eci#e who gets cus#y of your chil#ren an# han#le their money.!f you leave no (ill or your (ill is #eclare# invali#
!n the a'sence of a (ill or other legal arrangement to #istri 'ute "ro"ert y at #eath, the )tate may ste# in to a#mi nister the estate an# #eci#e who gets cus#y of your chil#ren an# han#le their money.!f you leave no (ill or your (ill is #eclare# invali#
!n the a'sence of a (ill or other legal arrangement to #istri 'ute "ro"ert y at #eath, the )tate may ste# in to a#mi nister the estate an# #eci#e who gets cus#y of your chil#ren an# han#le their money.!f you leave no (ill or your (ill is #eclare# invali#
As average Americans, we work 80,000 hours in a lifeti me, or 4 to years. !n s"ite of all our resources an# the assets we earn #uring our lifeti me, the vast ma$ori ty of Americans #o not take the ti me to create the legal instructi ons to gui#e the court or a guar#i an. %ational statistics in#icate that more than 0& of Americans #ie without leavi ng a will. !n the a'sence of a (ill or other legal arrangement to #istri 'ute "ro"ert y at #eath, the )tate may ste" in to a#mi nister the estate an# #eci#e who gets custo#y of your chil#ren an# han#le their money. *his "rocess is calle# the law of intestacy. *he resul t can 'e lengthy #elays in the #istri 'uti on of your estate, court 'attl es 'etween relati ves an# your chil#ren 'eing raise# 'y someone you #o not favor. (here there+s %o (ill , -our assets go to whoever a state law says receives the assets, or to the government itself. A (ill shoul# 'e a statement to the things you trul y care a'out/ your s"ouse, your chil#ren, your "arents, your frien#s, an# your chari ties.
!f you leave no (ill or your (ill is #eclare# invali# 'ecause it was im"ro"erl y "re"are# or is not a#missi'le to "ro'ate/
!f you leave no (ill or your (ill is #eclare# invali# 'ecause it was im"ro"erl y "re"are# or is not a#missi'le to "ro'ate/ 0. 1eo"le you #islike or "eo"le who #islike an# ignore you may get your assets. 2. )tate law #etermi nes who gets assets, not you 3. A##itional e4"enses will 'e incurre# an# e4tra work will 'e require# to qualify an a#mi nistrator5 )urety Bon#, a##i ti onal costs an# legal fees 4. -ou lose the o""ortuni t y to try to re#uce Estate *a4, )tate inheri tance ta4es an# 6e#eral estate ta4es . A 7u#ge #etermi nes who gets custo#y of chil#ren. A gree#y 'rother or cra8y mother in law coul# ask the court for custo#y. 1 9. !f you have no s"ouse or close relati ves the )tate may take your "ro"ert y :. *he "roce#ure to #istri 'ute assets 'ecomes more com"licate# 8. !t "ro'a'l y will cause fights an# lawsui ts withi n your famil y (hen love# ones are grievi ng an# #ealing with #eath, they shoul#n+ t 'e overwhel me# wi th 6inancial concerns. A (ill must not onl y 'e "re"are# wi thi n the legal requi rements of the state )tatutes 'ut shoul# also 'e "re"are# so it leaves no questions regar#i ng your intenti ons. *hink 5 (ho #on+ t you want to receive your assets; (ithout a (ill, they coul# recei ve your assets an# request custo#y of chil#ren. (ho is not the 'est choice to raise your chil#ren, or safeguar# your chil#ren< s money for college; =o you want chil#ren, or gran#chil #ren, to get money when they turn 08; (ill they invest money wisel y, or go to )easi#e an# "lay games; Life Insurance )ometi mes it is not wise to leave chil#ren as a 'eneficiary of life insurance an# your "ension if your chi#l#ren are un#er the age of 20. -ou coul# make your estate the 'eneficiary of life insurance, an# "ension, then #irect in your (ill that the money 'e use# to "rovi #e su""ort an# college e4"ense for chil#ren. 6or e4am"l e, the (ill coul# "rovi #e that any "orti on of my resi#uary estate which 'ecomes #istri 'uta'l e to a 'eneficiary un#er the age of twent y5 one >20? years shall 'e hel# as a se"arate trust 'y my E4ecutor until such 'eneficiary attai ns the age of twent y5 one >20? years. @y E4ecutor shall a""l y such amounts of income an# "rinci"al as he, in his sole #iscreti on, #eems "ro"er for the heal th, maintenance, e#ucati on, welfare, or su""ort of such 'eneficiary an# shall accumul ate any une4"en#e# income not nee#e# for the a'ove "ur"oses, "aying an# transferri ng the "ortion hel# in trust to the 'eneficiary u"on his or her attai ni ng the age of twent y5 one >20? years. 1rior to his or her attai ni ng the age of twent y5 one >20? years, my E4ecutor may a""l y such income or "rinci"al for 'enefi t of such 'eneficiary #irectl y or 'y "ayment 2 to the "erson wi th whom such 'eneficiary resi#es or who has the care or control of such 'eneficiary without the interventi on of a guar#ian. @y E4ecutor shall not 'e o'ligate# to su"ervise or inquire into the a""licati on of such amounts 'y such "erson, an# the recei"t of such "erson shall 'e a com"lete release of my *rustee. *AE 6BCCB(!%D !) A )A@1CE B6 A VAE!E*- B6 FCAG)E) A%= !*E@) (A!FA KE%%E*A VEEFA@@E%+) CA( B66!FE B6*E% !%FCG=E) !% A (!CC
0)*/ =EB*) A%= *AHE) 2%=/ )1EF!6!F BEIGE)*) 3E=/ =!)1B)!*!B% *B )1BG)E 4*A/ =!)1B)!*!B% B6 EE@A!%=EE B6 E)*A*E *A/ FEEA*!B% B6 *EG)*) 6BE )1BG)E 9*A/ FEEA*!B% B6 *EG)* 6BE FA!C=EE% :*A/ B*AEE BE%E6!F!AE!E) G%=EE 20 8*A/ EHEFG*BE) J*A/ *EG)*EE) 00*A/ DGAE=!A%) 00*A/ )GEE*- BE BB%= 02*A/ 1B(EE) 03*A/ A6*EEBBE% FA!C=EE% 04*A/ 1E!%F!1AC A%= !%FB@E 0*A/ %B A))!D%@E%* B6 BEIGE)*) 09*A/ DE%=EE 0:*A/ FB%)*EGF*!B% B6 (!CC 08*A/ %B FB%*E)* FCAG)E (A- 1EE!B=!F EEV!E( !) E))E%*!AC Even if you have an e4isting (ill, there are many events that occur which may necessitate changes in your (ill. )ome of these are/
3 K @arriage, #eath, 'irth, #ivorce or se"arati on affecti ng either you or anyone name# in your (ill K )ignificant changes in the value of your total assets or in any "articul ar assets which you own
K A change in your #omicile
K =eath or inca"aci ty of a 'eneficiary, or #eath, inca"aci ty or change in resi#ence of a name# e4ecutor, trustee or guar#ian of infants, or of one of the wi tnesses to the e4ecuti on of the (ill K Annual changes in ta4 law K Fhanges in who you like
@A- ! FAA%DE @- FGEEE%* (!CC; -es. A (ill may 'e mo#ifie#, a##e# to, or enti rel y change# at any ti me 'efore your #eath "rovi #e# you are mental l y an# "hysicall y com"etent an# #esire to change your (ill. -ou shoul# consi#er revising your (ill whenever there are changes in the si8e of your estate. 6or e4am"l e, when your chil#ren are young, you may think it 'est to have a trust for them so they #o not come into a'solute ownershi " of "ro"ert y until they are mature. Beware, if you #raw lines through items, erase or wri te over, or a## notati ons to the original (ill, it can 'e #estroye# as a legal #ocument. Either a new (ill shoul# 'e legall y "re"are# or a co#icil signe# to legall y change "ortions of the (ill. A "ortion of your (ill an# Estate 1lanning can 'e #e#ucte# on your income ta4 return when it #eals wi th ta4 "lanning. *hus, "art of the fee is ta4 #e#ucti 'l e for income ta4 "ur"oses. Gn#er the law in %ew 7ersey, if a "erson #ies without a (ill an# wi thout chil#ren, their s"ouse will inheri t all assets, even if they are se"arate# from the s"ouse. !n a##i tion, if you have chil#ren from a "revious marri age, 'ut no (ill, your se"arate# s"ouse will get half your estate. *herefore, you may wish to #o the followi ng/ 0? Aave an El#er Caw attorney "re"are a (ill to #istri 'ute your assets to the "eo"le you care the most a'out. !f you alrea#y have a (ill, "re"are a new (ill an# have the ol# (ill revoke#. > -our estate "lanni ng attorney will e4"lain this to you.? 2? 1re"are a 1ower of Attorney to select someone to han#le your finances if you 'ecome #isa'le#. Aave your ol# "ower of attorney revoke#. 4 3? 1re"are a Civing (ill "re"are# 4? Fhange your 'eneficiary on assets you may own, such as stocks, 'ank accounts, !EA, an# other financial assets. Fhange your 'eneficiary un#er your own life insurance, whether whole life insurance or term insurance. ? Fontact your human resources "erson an# change the 'eneficiary on life insurance, "ension, stock o"tions or other em"loyee 'enefi ts. %ote that your s"ouse must sign a wri tten wai ver "ermi t ti ng you to change 'eneficiaries. 9? Kee" your "ersonal "a"ers at a location where famil y can fin# them. :? Aave your attorney "re"are a "renu"ti al agreement if you #eci#e to get re5 marrie#. 8? @ake sure the trustee for any fun#s #esignate# for your chil#ren is the LrightL trustee. J? !n %ew 7ersey, if you are marrie# an# living with your s"ouse, un#er certai n instances the survi vi ng s"ouse has a right to Lelect against the (illL *he #isinheri te# s"ouse may like to elect against the (ill an# try to o'tai n one thir# of the estate. -our attorney can e4"lai n how you can "rotect yoursel f an# your chil#ren. 00? !f you have minor chil#ren, nomi nate someone un#er a (ill to serve as guar#ian to the chil#ren. Although the survi vi ng "arent o'viousl y has first right of custo#y of chil#ren, they may not even want custo#y. )AVE @B%E-5 Aave your attorney "re"are a self5 "rovi ng (ill wi th a %o 'on# clause -our estate will 'e su'$ect to "ro'ate whether or not you have a (ill an# in most cases, a (ill re#uces the cost 'y elimi nati ng the requirements of a 'on#. (ith a well5 #rawn (ill, you may also re#uce #eath ta4es an# other e4"enses. =on+ t "inch "ennies now to the #etri ment of your 'eneficiaries *he "ro"er "re"arati on of a (ill shoul# invol ve a careful anal ysis of the your assets, famil y an# #esires. Estate 1lanning is the "rocess of e4ami ni ng what will ha""en to your "ro"ert y when you #ie an# arrangi ng for its #istri 'uti on in such a manner as will accom"l ish your o'$ecti ves. *he cost of a (ill #e"en#s on the si8e an# the com"le4i t y of the estate an# the "lans of the "erson who makes the (ill. Be sure your (ill takes into account the 2000 6e#eral *a4 changes an# any !nheri tance *a4 changes. Also, ascertai n if your (ill is Mself5 "rovi ngN, which woul# #is"ense with having to fin# the (ill+s wi tnesses after #eath. B*AEE =BFG@E%*) *B BE 1EE1AEE= B- -BGE A**BE%E- 5 51ower of Attorney5 to allow a truste# "erson to a#mi nister your assets #uring your lifeti me, either u"on #isa'ili ty or now 5Civing (ills5 to state your wishes concerni ng me#ical care in the event of your serious illness 5*rusts >an# @e#icai# *rusts? CONCLUSION 1lanning can only 'e #one if someone is com"etent an#Oor alive. @ake sure your assets can 'e "asse# #irectl y to your love# ones. Kenneth A. Vercammen is a @i##lese4 Founty trial attorney who has "u'lishe# 02 articles in national an# %ew 7ersey "u'licati ons on litigati on to"ics. Ae has 'een selecte# to lecture to trial lawyers 'y the American Bar Association, %ew 7ersey )tate Bar Association an# @i##lese4 Founty Bar Association. Fall our office to sche#ule a confi#enti al a""oint ment :325 :25 000 ENNE!" #E$CAMMEN % ASSOCIA!ES& PC A!!O$NE' A! LAW 203 (oo#'ri #ge Ave. E#ison, %7 0880: >1hone? :325 :25 000 >6a4? :325 :25 0030 we'si te/ www.n$ laws.com 6