Elder Law
PLANNING YOUR WILL
Planning your will is not complicated. However, there are a few essentials everyone should know.
1. Know how much you're worth. When considering your estate take into account securities, bank accounts, your home, automobile, jewelry, pensions, IRA's, insurance and the appreciated value of real estate.
2. Use a qualified attorney to assist you in the preparation of your will. Don't be afraid to discuss your needs with your attorney. Proper preparation of your will, will avoid complications later.
3. Keep your family members informed as to your plans. Your family deserves to receive what you have promised them.
4. Assign beneficiaries to your life insurance rather that designate the estate as the beneficiary.
5. Don't wait too long to begin. Planning is crucial for people age 50 and over, but it is also important for younger people too, especially if they have children.
6. Keep your will up to date. Laws change. Circumstances change. Review your will at least once a year.
WHEN SHOULD YOU DO A NEW WILL?
It should be carefully checked every few years to make sure it's provisions conform with changing federal and state laws as well as your own resources and wishes.
It is most important to have your will checked if anyone in your will has passed away, become incompetent, reached majority, or when moving from one state to another.
When you die, the place of permanent residence determines which states's laws apply. In some cases, unless your will is current and applicable, property owned in one state, even a bank account, will be distributed as though you made no will at all.
If you have minor children or grandchildren, you need to consider a testamentary trust provision in the will making proper provisions for them to include naming a Trustee and Guardian.
If your estate has been greatly reduced through financial reverses you may wish to concentrate your bequests.
DURABLE POWER OF ATTORNEY
The Durable Power of Attorney gives all power to make all decisions from the party who is granting it to another person. This power includes the power to make all financial decisions, sign all accounts, sell Real and Personal property, and make any medical decisions, such as enforcing a living will.
The Durable Power of Attorney, on its face, is a valid document, in other words, the person who has possession of it can present it to any authority, bank, title company, attorney, etc. and that's enough power within itself to give the person the authority to do anything in your place.
The only matter that the person you grant the power to cannot handle, is to make or change your will.
An example on how this power might be used becomes evident if you became mentally or physically incompetent as a result of a stroke or Alzheimers. In that situation the person who has the Power of Attorney could pay your bills, sell your property, pay your bills and make any medical decisions for you if you would be incompetent to do so.
Since this is a powerful document it is suggested that you do not give this document to the individual but keep it with your private belongings and they would be able to access it in case of your disability.
Many people question the need for this document since they say most of their property is jointly held. This might be true with regard to being able to access bank accounts that are jointly held. However, when it comes to real property the only way you can sell real property is by having the signatures of both the parties. When you are mentally or physically incapable of signing a deed, a Guardianship or a Power of Attorney is necessary. Sometimes situations arise when one or another of the Spouse becomes incompetent and needs nursing home care and the real estate needs to be sold so they can move closer to other loved ones.
Consequently, it is less expensive and more efficient to give the Power of Attorney to one you can trust instead of having Government in your back yard.
While the person given the Power of Attorney is competent, they may revoke their Power of Attorney at any time and it would become null and void.
© Walker Metcalf
Phone: Local 806-763-7306 Toll Free 800-375-7307
Fax: 806-763-4308
E-Mail: WalkerMetcalf@sbcglobal.net2206 Broadway
Lubbock, Texas 79401Not Certified By The Texas Board of Legal Specialization
Member College Of The State Bar Of Texas
Designed by
LubbockHospitality.Com
