WILLS, etc.

Everyone needs two wills – one for their property (will) and one for their life (living will). A will is necessary even if your do not own anything because your accidental or intentional death may result in money flowing to your estate. A living will is also necessary or you may be kept alive indefinitely, even if brain-dead.

Will

A will states who you want to distribute and receive your assets after death. It names an executor who collects your assets, pays your debts and gives the remainder to your beneficiaries. A will may also name a guardian for your minor children.

Living Will

A living will tells your treating physician that you do not wish to be kept alive artificially if you are terminally ill with no chance of recovery. It directs your doctor to make you comfortable but to let you die. The living will takes effect when you can no longer make your own medical decisions.

Power of Attorney and Healthcare Proxy

In addition to a will and a living will, you should also execute a power-of-attorney and health care proxy. These documents are needed when you are unable to make your own property and/or health care decisions. They appoint someone to be your agent who is willing and able to help you manage your property and your health.

Trusts

Trusts are created when you give title to your property to a trustee (legal owner) to manage and pay out to you or your beneficiaries (beneficial owners). Trusts can be created during your lifetime (inter vivos or living trusts) or by your will (testamentary trusts). Trustees can be persons or institutions, such as banks.

A living trust is a way of avoiding probate provided you have transferred all your assets to the trustee. You should also have a will that distributes any non-trust property to beneficiaries directly or through a testamentary or living trust. Disputes concerning the interpretation of a trust agreement or the administration of same are resolved in Surrogates (Probate) Court.

DO NOT RELY ON THIS ARTICLE. SEE AN ATTORNEY.

E-mail Paul Herrmann: pauljosephherrmann@yahoo.com