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IntroductionAs with your physical health, you can avoid problems by periodically checking your legal health. Areas to consider include contracts, consumer rights, estate planning, insurance coverage, retirement planning and wills. You should review your legal papers about once a year to see if the relevant plans and documents reflect your current needs. MarriageCouples sometimes enter in prenuptial agreements or separation agreements to avoid disputes in the event of divorce. DivorceYou should consult your lawyer if your marriage is ending. You will need sound professional advice to determine child custody, financial support and make a fair division of the property of the marriage. Your lawyer can also seek protection if your spouse threatens to assault or harass you, take your children in violation of custody or visitation rights, or hide property belonging to the marriage. Wills and Estate PlansGood legal health usually includes having an estate plan with a valid will. Without a will, your property may not be distributed as you desire, extra expenses and taxes may be incurred, and some family members may inherit your property against your wishes. Buying and Selling a HomeBeware of common pitfalls when buying and selling a home, most people’s largest investment. For example, the home buyer should avoid unfavorable provisions in the sales contract, such as failure to provide for the return of the deposit if there are major defects in the home. The seller should watch out for onerous provisions in the listing contract and sales agreement, such as requirements to pay an agent’s commission even if a sale is not completed. If you are buying or selling, check with a lawyer before you sign a contract. The lawyer can review the contract, handle negotiations and arrange for documents that protect your interests and complete the sale. InjuriesAccidental injuries can occur in your home, apartment or car, at your workplace or stores, offices and medical centers. You and your family members may be entitled to compensation from those who contributed to the injury—the driver of another vehicle, the owner of an unsafe building, the provider of improper medical treatment, the manufacturer of a defective product or the employer with unsafe working conditions. Compensation for injuries can include reimbursement of your medical expenses and monetary damages for disability, lost income, and pain and suffering. Whether or not compensation can be recovered from the responsible party, you may be covered under your own insurance policies. Your lawyer can explain your rights and help you recover compensation from responsible parties and insurance companies in the event of such injury. EmploymentLegal difficulties sometimes arise in the workplace. For example, your job application may have been rejected because of your age or race, or you may have been denied a promotion because you refuse the romantic advances of a supervisor. You may have been fired illegally for refusing to break the law, failing to work on your sabbath or because of the results of a drug test. BankruptcyIf you are having trouble paying bills, your lawyer can advise you about your options, including credit counseling, deferred payment plans and loans. You can also obtain advice about consumer protection and bankruptcy laws. If bankruptcy is the best option, your lawyer can prepare your bankruptcy forms and serve as your advocate during the bankruptcy proceedings. Tax PlanningGifts, contributions, medical and business expenses, investments, and other expenditures can have important tax consequences. Also, births, deaths, marriage, divorce and other events can affect your tax situation. Your lawyer can advise you how to minimize your taxes and prepare the legal documents needed for your tax planning. Your LawyerYour lawyer can help you to avoid legal problems and solve them when they are unavoidable. He or she can give you valuable advice during major events in your life: marriage, divorce, buying and selling a home or responding to an accident.
This pamphlet provides general information. Laws develop over time and differ from state to state. This pamphlet does not provide legal advice about specific legal problems. Let us advise you about your particular situation. ® 2008 by BlumbergExcelsior, Inc
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 INTRODUCTIONA will avoids costs and complications for your heirs when you die. Besides providing instructions about gifts of your property—like your home, car, investments and jewelry—your will can provide instructions for payment of your debts, selection of an executor for your estate, and appointment of a guardian for your children. Without a will, your property will be distributed according to state law and a court may select an administrator for your estate and a guardian for your minor children. Your lawyer can help you prepare a valid will that minimizes taxes and reduces the time and expense of handling your estate. DISADVANTAGES OF DYING WITHOUT A WILLIf you leave no will, you will have given up your right to decide who inherits your property. Your property will be distributed according to state law, which might be quite different from your preferences. And without a will, you can't disinherit heirs. If you leave no will, you also lose the opportunity to select a guardian for any minor children and an executor for your estate. Court-appointed administrators and guardians may not be the family member or friend that you would have chosen to handle your affairs. Dying without a will can be costly and may complicate the transfer of your property to your heirs. For example, the estate may have to pay bond premiums if there is no will stating that you don't require executors and guardians to post a bond. In addition, estate administration proceedings without a will may delay transfer of property to your heirs. CHANGING YOUR WILLYou may need to change your will if you move to a new state, marry, divorce, have a child, acquire substantial property, or suffer the loss of a loved one. Tax law changes may also require a will update. Read your will at least once a year to consider changes. You can make the changes by writing a new will or by preparing an amendment to an existing will called a codicil. A new will is best if there are many changes. A codicil may be appropriate for a small change, but it must be made with the same formalities as a new will-crossing-out or writing inserts onto your will might invalidate it. APPOINTING AN EXECUTORYou should appoint an executor in your will. An executor locates heirs, lists property, pays debts, and distributes property to your heirs. A relative or friend can serve as your executor, but you should consider using a professional executor (such as a bank or trust company) if you have a large or complicated estate. An executor should be someone who is familiar with managing property, financial matters, and record-keeping. Before naming an executor, confirm that the person is willing to serve. Your lawyer can help you select the best executor. As noted above, your will can state that the executor is not required to furnish a bond, thus saving your estate this expense. APPOINTING A GUARDIANIf you have children under 18, you should appoint a guardian in your will. Otherwise, if you and your spouse die at the same time without such an appointment, a court will select a guardian to care for your children and manage their inheritance until they become adults. You can create a trust to control the property transferred to your children. A trust is useful if you are concerned that the children may lack the maturity to handle their inheritance after age 18. Your lawyer can help you to select a guardian and create a trust in your will that protects your children and your wishes. KEEPING YOUR WILL IN A SAFE PLACEYour will should be kept in a safe place so that it can be promptly located when you die. You may wish to have your lawyer keep the original to protect it from damage or loss. Although you are not required to give your executor a copy of the will, you should tell both your executor and a trusted family member where your will is stored. LIVING WILLSIn addition to ordinary wills that state your wishes for your property when you die, the laws of some states permit "living wills" that instruct your doctors to withhold life support equipment while you are alive. A living will is important if you become comatose with no hope of regaining consciousness. Your "living will" should be written in a document separate from your ordinary will and you should re-sign and re-date it every few years to comply with your state law and to reaffirm your preferences. Give a copy of your "living will" to your doctors and to a close family member. Your lawyer can help you write a "living will" and advise you about re-signing it every few years to keep it valid. MAKING YOUR FUNERAL ARRANGEMENTSYou can include instructions for your funeral arrangements in your will. However, you may wish to put these instructions in a separate letter. Give a copy of the instructions to your executor or a family member or friend to avoid delays when you die. You can also include instructions about gifts of your body organs to hospitals for research or transplants. Such instructions for gifts of body organs can be noted on your driver’s license or a separate donor card that you can carry in your wallet. REDUCING THE TAXES ON YOUR ESTATEFederal estate taxes and state inheritance taxes may be deducted from your property before it is transferred to your heirs. A federal estate tax applies if the value of your property exceeds an exempt amount that varies depending on the year of your death. Following is a table of the exempt amount: Year of Death Exempt Amount• 2002 - 2003 $1.0 million REDUCING PROBATE COSTSProbate costs include court fees, bond premiums and the fees of professionals who assist your executor with the administration of your estate. Your lawyer can help you reduce probate costs with estate planning tools like joint ownership, living trusts, lifetime gifts, and business recapitalizations. For example, your lawyer can prepare a living trust in which you appoint a trustee to distribute your property when you die. Some estate planning tools can help you reduce probate costs, but they may not lower your estate taxes. PREPARING YOUR WILL WITH A LAWYERYour lawyer can help you draft your will and explain the tax consequences. Your lawyer can also help you CONCLUSIONYou should have a will if you own any property—a home, a car, bank accounts, stocks and bonds, retirement benefits, jewelry, clothing, household goods, and so on. A will lets you distribute your property as you want with a minimum of costs and taxes. It is an opportunity to select an executor for your estate, a guardian for your children, establish trusts and dispense with costly bonds. If you don't have a will, ask your lawyer about drafting one without delay. CHECKLIST FOR WILLS
This pamphlet provides general information. Laws develop over time and differ from state to state. This pamphlet does not provide legal advice about specific legal problems. Let us advise you about your particular situation. ® 2008 by BlumbergExcelsior, Inc |