WILLS AND ESTATES

Even if you have a relatively small estate, or if you and your spouse own all of your assets jointly, each of you still needs three documents: a will, a power of attorney, and a health care proxy. The first spouse to die has no estate to probate if all assets are jointly owned. The problem is, who plans to die first? Or suppose both of you die in the same accident? Wills for BOTH spouses allow you to control the distribution of your assets.

Other important issues can be anticipated in a will. For example, someone must be nominated as the “personal representative” of your estate if your spouse predeceases you, or if s/he is unable to serve in that capacity due to age or infirmity. If both spouses have died leaving minor children, who will be the guardian(s) of those children? Who will manage money for these minors until they are old enough to manage it themselves? Do you want your child to obtain total control over the estate assets when s/he turns 18, or do you want to ensure that money is available for his/her education rather than a convertible? A will can dictate the management and use of the money in your estate several years after your death.

Without a will, a probate court will have to decide who shall serve as the representative of your estate. You don’t want your children bickering in court, saying, “Mom always like you best.” In addition, without a will, the division of your estate is determined by law, which may not coincide with your wishes.

You also need a power of attorney, nominating someone to make financial decisions on your behalf if you become incapacitated. In most cases the spouse is nominated, but if no spouse is available, then who will make deposits in your bank account, deal with Social Security or your employer, or make insurance claims? Without a power of attorney, a fight may break out among your children or relatives over who should be in charge.

You also need a health care proxy, nominating someone to make health care and end-of-life decisions if you become incapacitated. Once again, if no spouse is available, someone must assume that responsibility. Obviously this is a serious matter to be discussed with your family before such decisions have to be made in an emergency.

Contact Steven B. Rosenthal today for expert advice and representation.