Wills

Wills - The Essential Estate Planning Document

Wills are the essential and basic document in an estate plan. Below you can learn more about how wills work for you

What is a Will?
What is the procedure in making my Will?
Why Do I need a Will?
What protection does a Will provide me and my family?
Can I change my Will?
Do I have "assets" to protect that I am not thinking of?
Who are the players in a Will that I have to thinking about?

A: Wills are the quintisential document in an estate plan. A will tells your family, friends, the courts and government what you want to be done with your assets. There are several important provisions in a Will. These provisions include who your tangible property should pass to, who your intangible proprety should pass to, how you would like your spouse, children, or grandchildren to be taken care of with your assets, where you should be buried, and who should care for your minor children should you no longer be around to care for them.

A will is a legal document in which you obligate yourself to pass your assets onto your survivors. A will is governed by statute, and the passing of asset are governmed by state and federal law. However, wills are very flexible and are tailor made to your needs.

Q: What is the procedure in making my Will?

A: The Will making process is easier than you may think. Law Offices of David M. Schlachter has innovated a cost effective, efficient, and unburdonsome method in creating our clients' wills. It takes just two meetings and a couple of weeks for a standard estate plan to be created. Contact our offices to find out more.

Q: Why do I need a Will?

A: The simple answer can be illustrated by the following anecdote.
Farmer Jones came into an attorney's office and complained that Farmer Tom from down the road is stealing his cows. The attorney says he heard enough and will take the case. A half an hour later Farmer Tom came into the office complaining that Farmer Jones stole his cows. The attorney says he heard enough and will take the case. The young associate who listened to both consultations asked the attorney how the attorney will be able to give each farmer the cows. The attorney answered: Don't worry about the cows, the cows will be mine.

The simple answer to why you need a will is: Keep your cows.

In the above story "cows" represented assets. Assets come in all forms. Your assets include your tangible and intangible property, money, investments, retirement plans, life insurance, and copyrights. Assets also include your spouse or domestic partner, and children. Of course, your spouse and children are not your property but they are important considerations and should be provided protection.

Federal, state, and local government would like to stick their hands in your business and take your c ows. An unfortunate reality is that extended family would also like to stick their hands in your pie. Minor children need to be planned for, as to who will care for them and what monies will be available to support them should you not be able to.

Wills control the distribution of your assets and protect your interests. A will, as part of a proper estate plan, can help eliminate estate and inheritance taxes, as well as provide the adequate protection to your loved ones. Wills also expediate and simplify the administration process and lessen the burden on loved ones.

If a person passes intestate, without a will, the estate must go through a lengthy administration process and the assets are divided by statute. It does not go all to your spouse. Statute requires other distribution and the estate may be highly taxed.

Additionally, proper estate planning is necessary to properly plan with retirement funds such as IRAs that have complicated income tax considerations.

A will is like an umbrella you stick in your work bag or purse and forget about. When that rainy day comes you will be protected.

Q: What protection does a Will provide me and my family?

A: Wills protect you and your family by carrying out your wishes. They direct where your assets go and how they are to be distributed. Planning can be implemented to eliminate estate taxes in some cases, or severely reduce estate taxes in others. Wills also control how the money is distributed. Especially in cases where there is a life insurance policy, windfalls are not beneficial to most recipeints, particularly in cases where the beneficiary is not used to dealing with a large amount of money. Often the result is mismanagement and loss of the monies within a couple of years. Wills dictate how the monies should be distributed so as to be most beneficial to beneficiaries.

Wills also provide for guardians for minor children. They also provide for accounts to be set up to help support the children until they reach majority. Similarly, Wills provide for the care of pets.

Wills have other important provisions that streamline the probate process to lessen the burden on the survivors, reduce or eliminate taxes, and in the case where taxes are unavoidable, control which assets are taxed so that the remaining assets are gifted without reduction.

Q: Can I change my Will?

A: Yes. Wills can be changed. Simple changes are made through amendments, called codicils, while more drastic changes to the estate can be planned for by revising the will at a later date. A later will revokes all earlier wills.

Q: Do I have "assets" I am not thinking about?

A: As mentioned above, you may. Assets include all your property. Life insurance, pension, and retirement plan benefits are all assets. Stocks, bonds, and other investments, and their potential growth rate should be considered in planning. Minor children must also be provided for, in terms of support and guardianship. Real property and expensive tangibles such as cars and boats are also assets.

Q: Who are the players in a Will that I must think about?

A: The important players in the will are as follows:

Executor - The person that will wind up your estate and make sure the Will is properly probated

Trustee - The person that will collect all the assets that go into the testamentary trust, create it, and manage it.

Guardian - The person who will care for minor children

Law Offices of David M. Schlachter, LLC

973 272-4768 / 718 377-1356