Another reason for Prepaid Legal

I am again on my bandwagon for PrePaid Legal simply because I feel that it is important. If for no other reason then to get your affairs in order before it is to late. I have two stories to share with you on this matter, one personal and one from an associate.

The first story is about my dad.

He was taken before his time, and he was taken leaving things in utter disarray. He had a girlfriend, and ex wife, and estranged wife and us three children. As I stated in another entry, I fought for his funeral, in which I honored his wishes according to what he had told us our entire childhood. His girlfriend wanted to go against those wishes because she stated that he no longer believed that way and he should be buried. The estranged wife objected to anything above the bare minium because she hated him and was responsible for paying for the funeral as that they never legally divorced eachother. Niether of them wanting to pay for it. He had a pention, and life insurance and three kids that according to his divorce from our mother should been the beneficiaries, however the estranger wife that had not seen him in over two years and was glad that he was dead ended up with everything. He owed my mom over $36K in back child support for my two younger siblings.

Had he had a will prepared, everything could have been addressed as he wanted it to be, instead the state decided what was going to happen, and then my mom fought for atleast part of what was owed in back child support. The estranged wife will recieve money for the rest of her life because of his death and there being no will, and the girlfriend kept all of his belongings. It was a mess. I BEG of you to NOT do this to your family. Make sure that your wishes and wants are heard and followed. Have a will prepared, have your advance directives taken care of.


My associates story:

The importance of a will

John Denver went out for a routine plane ride when the unexpected
happened. He crashed into the bay and died. What was he thinking?
Probably not about the fact that he had left three children and no will,
with no directive about the disposition of his $20 million estate.

Jackie O. on the other hand, left an explicit will detailing the handling of
her $200 million estate including specific bequests to her children, gifts
for her friends, and 36 pages of directives on the distribution of her
property including her Fifth Avenue apartment in New York City and an
autographed copy (signed by Robert Frost) of JFK's inaugural address.
While you may not have $200 million (yet!), it is important that you take
control of your legacy and write a will.

Seven out of 10 Americans die "intestate," meaning without a will. In fact, each state has its own rules regarding the distribution of property as well as laws that dictate what
constitutes the elements of a valid will. Just like any other area of
financial planning, knowing the basics can go a long way. Unfortunately,
most of us don't like to think about writing a will, but the best way to
provide for your heirs is to do proper planning in life, while you can!

What's a will?

A will is a document that transfers your property at your death to
designated persons. It is revocable, which means that it is subject to
change until your death. It becomes effective only upon your death. The
goal of your will is to distribute your property to whom you wish, like your
diamond engagement ring to your favorite daughter-in-law or your coin
collection to your grandson. A will also provides for your assets to be
managed or for the care of your children by naming guardians for them.

You -- the "testator" if you are a man, or "testatrix" if you are a woman --
are the main player in writing your will. You must be of sound mind and
of majority age in your state. You must declare it to be your "last will and
testament." It must be in writing and signed by you, and two witnesses.
It should be revised when you have a change in your family situation like
a birth or a divorce, or when there is a change in the tax law. It is
essential to name a personal representative, who is known as an
"executor" or "executrix."

"The executor is charged with a fiduciary duty to carry out the terms and
conditions of the testator's will as well as settle all debts. The role is
shaped by the size and complexity of the estate," says Judd Kleeger, an
attorney in New York City. Being an executor or executrix is a job which
requires competency and some financial knowledge. Upon the death of
the testator, the executor will have to take an inventory of and collect
assets, pay debts and taxes, and manage assets.

"An executor of a large and complex estate will have much to do.
However, they will be rewarded handsomely by receiving a fee, generally
a percentage of the estate's value," Kleeger says.

Related tax issues

There are several tax issues that you should be aware of when preparing
your will. Our government imposes an estate tax from 18 percent to as
high as 55 percent! Yes, 55 percent -- that is more than half of your
accumulated estate upon your death. Fortunately, we are all entitled to a
credit against this tax. In 1998, the "applicable credit amount" was
$625,000 increasing annually until it reaches $1,000,000 in 2006.
For estates larger than the applicable credit amount, there are several
strategies that can be employed inside a will to take advantage of this
credit -- because if you don't use it, you lose it. For example, a provision
can be made in both spouses wills for "Credit Shelter Trusts." This way,
the decedent's estate shelters their credit in a trust. This trust is one to
which the surviving spouse has the right to income but which will be out
of their estate, and upon their death, would not be taxed with their
remaining assets. Trusts are prepared at a 25% discount through the
Pre-Paid Legal family plan.

"With all of the recent tax law changes regarding gifts and estates made
by the Taxpayer Relief Act of 1997 and the IRS Restructuring and Reform
Act 1998, effective tax planning by a tax practitioner can save taxes both
during life and for your heirs," says Alan Levine, a tax attorney in New
York City.

Remember, your will is your last word. Don't let someone else, like your
state or the federal government, utter it for you! You can either pay a
high dollar estate planning attorney to prepare your will or you can get
one at NO ADDITIONAL CHARGE through your Pre-Paid Legal
Membership! The value of the Will alone will pay for your family
membership for years! Don’t procrastinate! Get your will prepared
TODAY!

The will alone is worth the membership fee!
www.prepaidlegal.com/hub/jennifercassady