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The below article has 40 topics. We are posting topics 31-40 today. You can read the entire article on New Jersey Lawyers under Having a Will Prepared Does Not Have to Be Expensive!
By Theodore Sliwinski, Esq.
31. What are the practical limitations of having a will?
Wills aren’t the place to handle certain kinds of property or issues. Wills are a wonderful, simple, affordable way to handle many people’s estate planning needs. However, in many scenario’s much more estate planning must be used to properly serve the client. Here are some of the important limitations of a will;
a. You can’t use your will to leave property you hold in joint tenancy with someone else (or in “tenancy by the entirety” or “with right of survivorship” with your spouse). At your death, your share will automatically belong to the surviving co‑owner. A will provision that leaves your share to another person would have no effect unless all of the co‑owners died simultaneously.
b. You can’t use your will to leave the proceeds of a life insurance policy for which you’ve named a beneficiary.
c. You can’t use your will to leave money in a pension plan, individual retirement account (IRA), 401(k) plan, or other retirement plan. Instead, name the beneficiary on forms provided by the account administrator.
d. You can’t use your will to leave money in a payable‑on‑death bank account. If you want to name a different beneficiary, just fill out a simple form at the bank.
32. When do I need to change my will?
It is important to make sure your will reflects your current wishes and situation. Life constantly changes. Your will should always be tailored to your current family and financial situation. Here are some events that should encourage you toward making a new will and reviewing beneficiary designations that have made for insurance policies, bank accounts, and retirement accounts.
a. You get married. You and your new spouse should create new wills when you get married. In New Jersey, your spouse is entitled to an elective 1/3 share of your estate after you die, unless you have a prenuptial agreement to the contrary.
b. You are unmarried, but have a new partner. Without a will, such as a living trust, your partner will inherit nothing. To avoid this, you and your partner will probably want to make new wills. Different rules apply if you and your partner are registered domestic partners.
c. you get divorced. A final judgment of divorce revokes any gift made by your will to your former spouse. Therefore, you should make a new will after a divorce.
d. You have a new baby. You will want to make a new will to name a personal guardian for the little one. This is the person you want to raise your child in the unlikely event that both you and the other parent become available.
e. You have new stepchildren. Unless you legally adopt stepchildren. They have no right to inherit from you in most situations. If you want to leave them a share of your property, then you should adjust your will.
f. You acquire or dispose of substantial assets, such as a home. If you leave all of your property to one or more people, there is no need to change your will as what you own changes. But if you’ve made specific gifts of property that you no longer own, you’ll want to avoid leaving the intended beneficiaries out in the cold. Likewise, if you obtain new property and you want to leave it to someone specific, you’ll need to change your will to make your wishes clear.
33. Can I prevent my spouse from inheriting my property?
Possibly. A divorce operates as revocation of any bequest made to your former spouse or any appointment of your former spouse as executor, but in all other respects the will is still effective. You can disinherit your spouse in your will. However, there certain laws that exist to protect a spouse if this should occur. New Jersey provides a surviving spouse with a right to take an elective share, which is up to one‑third of certain assets. However, there are several conditions that must be satisfied before a spouse is entitled to receive an elective share. If you and your spouse executed a valid prenuptial agreement waiving the right to an elective share or if grounds for divorce exist at the time of your death, your spouse will not be entitled to an elective share.
Any property that you own jointly with a right of survivorship with your spouse, as well as any life insurance, IRAs, 401(k) plans and similar retirement plans for which you designate your spouse as the beneficiary, will pass to your spouse regardless of what your will says.
34. May I change my will?
Certainly. A will is not an irrevocable legal document. A will may be changed or revoked in its entirety prior to your death provided that you have the mental capacity to change or modify it. To do so, you must either create a new will or execute an amendment, which is known as a codicil. If you want to revoke a prior will, then you should do so by making an express written statement in your new will.
35. How much does it cost to make a will?
The cost will vary according to each person’s individual needs. Unfortunately, many individuals obtain inadequate generic wills when they are looking for a bargain. I provide a basic will package for my customers. I charge a fee of $150 to prepare a basic will. I also charge $50 to prepare a power of attorney, and $50 for a living will. The price for preparing a will becomes more expensive if the distribution plan is more complex, and if any trusts are incorporated into the will. Mr. Sliwinski, Esq. prides himself for preparing all types of wills and other estate plans for an affordable price.
36. Can a will save me money in the long run?
Absolutely. A will can eliminate the requirement of obtaining a bond for your estate. Even for a modest estate the cost of a bond is at least $1,000 per year. Additionally, for a larger estates, a properly drafted will can often reduce federal estate taxes and New Jersey inheritance taxes by establishing trusts and providing directions as to how long a beneficiary must survive you in order to inherit under your will.
37. Can I prepare my own will?
Yes, however many self-made wills are deficient and they can’t be admitted to probate. The bottom line is that many internet company prepared wills are garbage and they are legally insufficient. Moreover, many of the fill in the blank form wills are also garbage and they can’t be admitted to probate. Finally, a self-prepared hand written “holographic” wills can only be admitted to probate after a costly time consuming formal Probate Court hearing.
38. What effect does a will have on real estate that is owned jointly by a husband and a wife?
Any real estate that is owned jointly by a husband and wife in the form of ownership legally known as “tenancy by the entirety” is not controlled by the will of the spouse who dies first. Therefore, the surviving spouse will become the sole owner of the home if he has rights of survivorship, regardless of what the will may provide.
39. Do all states have the same probate laws?
No, although New Jersey is one of several states to enact the Uniform Probate Code, most states have their own probate laws. Therefore, is a good idea to have your will reviewed when you move to another state.
40. Where is my will filed after I die?
When a person dies leaving assets in his name alone or in joint names with another person other than a spouse, it will be necessary to present the will to the County Surrogate for probate. The will is presented to the County Surrogate in the county wherein the decedent lived at the time of death.
The executor will need to present the original will, a certified copy of the death certificate, and a list of names and addresses of the closest next of kin to the County Surrogate. The legal papers are then prepared by the court and signed by the executor. The legal review of the documents by the surrogate is the probate of the will. If all of the requirements are met, the will is then admitted to probate and the certificates are issued to the executor. These certificates allow the executor to execute documents formerly done by the decedent such as transfer automobiles, bank accounts, investment accounts, etc.
The original will is retained and filed by the County Surrogate. The will becomes a public record and is listed in the general index.
Written by Theodore Sliwinski, Esq.
http://sliwinski.lawoffice.com/
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