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IntroductionThe Internet is filled with resources for adults as they pass fifty and look forward to enjoying their "empty nest" and retirement years. This guide provides a wealth of resources in a number of areas. Brief essays define and set up the topic, then link to appropriate resources. It's a "first stop" web resource on a wide range of topics of interest for living strong in a fifty plus world.
IQ Fifty Plus Guide is prepared by Remar Sutton and Associates and licensed to Educators Credit Union. Copyright 2007. All rights reserved. Wills    A will is a legal document in which you specify what should be done with your property—not just your home but any possessions—after you die. It also names the executor, i.e. the person to handle the property. If you die without making a will—called "intestate"—then state law will determine what happens to your property. For this reason, experts recommend that you have a will even if you have almost nothing. These resources will explain more about what a will is and how to make one. Even though requirements may differ from state to state, these are fairly standard. To make a will you must be an adult –- age 18 in most states. You must also be of "sound mind." This basically means that you must know what a will is and that you are making one, know what you own, know the identities of your family an close friends, and be able to decide how to distribute your property. A will must be typewritten or printed from a computer. Handwritten wills are only valid in a few states and even then should be a last resort. What makes a will legal?To make a will legal it must fulfill these requirements:
A will doesn't have to be notarized. In most states, you and your witnesses should sign an affidavit before a notary public. This makes the will "self-proving," so that the witnesses won't have to go to court to prove the validity of the will. A will doesn't have to be filed or recorded with any government agency. It may be filed in a few states should the maker so wish. What should be in a will?A will usually has the following information:
Any of the following information can also be included in a will, if you desire.
What shouldn't be in a will?Experts advise that your will is not the appropriate place to handle the following:
For the appropriateness of specific bequests and instructions your wish in your will, consult your legal advisor. Does a lawyer have to draw up a will?No. A lawyer doesn't have to draw up a will for it to be legal. With good self-help materials—books and software are available—most people can draw up their own will. In Wisconsin, state law provides two standard forms for wills that can be completed without using a lawyer. These are the Wisconsin Basic Will and the Wisconsin Basic Will with Trust. Answering Your Questions about Wisconsin Basic Will Law from the State Bar of Wisconsin provides more information about these forms. However, there are benefits to having a lawyer prepare your will (and other estate planning documents). A lawyer is knowledgeable about the laws of the state and is trained in putting your wishes in the clearest and most appropriate form. A lawyer can also help you decide which estate planning documents are appropriate for your situation. Updating your willYour will can be updated in two ways. The first is to add a "codicil." A codicil can add, modify, delete, alter or revoke existing provisions in a will. A codicil must be signed before witnesses just like a will. The second way it to write a new will. With the use of computers today, it is probably just as easy to write a new will than to make a codicil. Making a new will can also reduce confusion that can be caused by codicils. If you make a new will, it should include a clause that cancels all previous wills. Choosing a personal representativeYour will must name a personal representative (or an executor in many states). The personal representative is responsible for settling your financial affairs after your death. You can choose anyone who is age 18 or older (except convicted felons) to be your executor. Most people choose their spouse, an adult child, or a close friend. Your personal representative should be willing to do the job. You should also name an alternate personal representative to cover the possibility that the person name as the personal representative can't or doesn't want to be the personal representative. If you don't name an alternate personal representative, the court will have to appoint one. Choosing a personal guardianIf you have minor children (under age 18), then you should appoint a guardian for each child in your will. This will ensure that, in the unlikely event that you and your spouse die, your children are cared for as you would wish. You can name a separate guardian for each child or one guardian for all the children. If you decide to name a separate guardian for each child, you should provide a statement explaining why this is best for the children. Choosing a financial guardianBecause minor children cannot own property outright without adult supervision unless, depending on the state, it is under $2,500 - $5,000, experts recommend that the personal guardian should usually manage the money and property left for the children unless there are very good reasons for choosing someone else. For example, the person you choose as a guardian may not want to manage the financial inheritance in addition to caring for the children or he or she may not be financially savvy. In this case, you want to choose someone who is a good financial manager and is willing to do the job. If you do decide to have another person manage the finances, then make sure that the proposed guardians agree to this arrangement before you name them. You can leave property to a minor and name the property guardian in these basic ways:
The amount of paperwork required for naming a property guardian and the requirement for court supervision vary among the methods. Consult a legal professional to decide what method is right for your situation. Resources for WillsThese resources provide more information about these topics related to making a will. Making a Will is a section in the Estate Planning Life Advice brochure prepared for the Federal Consumer Information Center (FCIC) by MetLife. It describes the basics of making a will. What is a Will? from AARP offers an introduction to preparing a will. It also includes a worksheet to help you get organized. Wills from Nolo.com has various articles such as making a no-frills will, choosing a guardian for your children, choosing an executor, when do I need to change my will. Answering Your Questions about Wills & Estate Planning and Answering Your Questions about Wisconsin Basic Will Law from the State Bar of Wisconsin provide answers to common questions about the laws governing wills in Wisconsin. IQ Fifty Plus Guide is prepared by Remar Sutton and Associates and licensed to Educators Credit Union. Copyright 2007. All rights reserved. Living TrustsA revocable living trust is a trust that you set up while you are still living and to which you immediately transfer ownership of assets that you plan to pass on to your heirs. You continue to control your assets within the trust and can revoke it or change it at any time. The chief advantage of living trusts, advise experts, is that after your death the ownership of the trust passes directly to the beneficiaries; it does not have to go through probate. Experts caution, however, that living trusts are not appropriate for everyone. Many states have simplified probate, so a living trust may not save money or time. Living trusts can range from the simple to the complex. Be wary of the "one-size-fits-all" trusts marketed over the phone, by mail, at the door, or through seminars. Even though you can create your own trust using a self-help book or software, experts recommend that you use an attorney. A living trust can also provide a way to handle your affairs if you become incapacitated. In this case, your co-trustees or successor trustee can take over management of the trust. Even if you have a living trust, legal experts point out that you still need a will to take care of assets that aren't in the trust. Their popularity has given rise to living trust scams and schemes that have defrauded consumers of millions of dollars. Here are some tips to help the wise consumer:
For more details about living trusts, check out these resources. Answering Your Questions about Revocable Living Trusts from the State Bar of Wisconsin provides answers to common questions about living trusts and the laws in Wisconsin. Living Trusts, a pamphlet developed by the Colorado Bar Association, gives a succinct introduction to revocable living trusts in a Q&A format. The article explains how a living trust is created and “what it may or may not accomplish for you and under what circumstances it may be appropriate.” Living Trust FAQs from Kiplinger.com covers the basics of Living Trusts, their suitability for estate planning, and potential dangers. Living Trust Offers: How to Make Sure They are Trustworthy from the Federal Trade Commission provides tips for identifying misleading living trust offers. Living Trusts: Beware of "One-Size-Fits-All" Estate Plans, a Consumer Alert from the Michigan State Attorney General’s Department, cautions against living trust kits being marketed across the country, particularly to older Americans and often at exorbitant costs, such as $1995 per trust. IQ Fifty Plus Guide is prepared by Remar Sutton and Associates and licensed to Educators Credit Union. Copyright 2007. All rights reserved. Healthcare Directives (Living Will) and Durable Power of Attorney for HealthcareMaking a will and/or creating a living trust are not sufficient because their main purpose is to determine what happens to your estate once you’ve died. To cover the eventuality that you may not be able to make your own health care decisions, you need a few more simple documents. Experts recommend that you prepare two documents—a healthcare directive and a durable power of attorney for health care. In some states, these documents are combined in a single form that may be found on the state website by searching for "health care proxy," "advance directive," "living will" or "health care directive." Healthcare DirectivesThe healthcare directive defines the type of care you want or don’t want, if you are unable to speak or decide for yourself. Healthcare directives may be called living wills, advance directive, medical directive, directive to physicians, declaration regarding health care, designation of health care surrogate, or patient advocate directive depending on the state you live in. In Wisconsin, they are called advance directives. Your healthcare directive can only become effective when the following occurs:
Your healthcare directive can describe whether you want specific procedures or care such as:
It's important that you include your wishes on pain medication because most states exclude pain-relieving procedures from the definitions of life-prolonging treatments that may be withheld. It's also important you include your wishes on whether you want food and water withheld because some states exclude nutrition and hydration from the definitions of life-prolonging treatments that may be withheld. Your healthcare directive is a good place to indicate if you wish to donate your organs, tissue, body parts or whole body. You can specify the organs, tissues, or body parts you wish to donate and also the purposes for which they can be used. It is smart to make the arrangements in advance, particularly for the whole body, and make sure that your healthcare agent and family members know about the arrangements. You should have a healthcare directive even if you don't name a healthcare agent. Medical personnel are required to follow your written wishes for healthcare or to find someone who will care for you as you directed, even if you don't have an agent. Durable Power of Attorney for Health CareThe durable power of attorney appoints someone to be your health care agent. Your healthcare agent will make medical decisions for you if you can't make or communicate them yourself. The healthcare agent may be called an attorney-in-fact, healthcare proxy, patient advocate, or healthcare surrogate. Most durable powers of attorney for health care give your healthcare agent the authority to make all healthcare decisions for you. You can place limitations on the agent's authority but experts recommend that you don't. Remember that a healthcare agent only steps in when you are no longer able to make the decisions. You can choose your spouse, partner, relative, or close friend. You should be comfortable discussing your wishes with them. The person you choose must respect your documented wishes even if they don't agree with them. They must also be willing to assert your documented wishes with the medical establishment and family members. Don't name an agent without discussing your wishes with them and making sure that they are willing to be your healthcare agent. In many states, the law prevents you from naming your doctor, or an employee or a hospital or nursing home, as your healthcare agent. While your agent doesn't have to live nearby, you should consider where they live. In many instances, your agent may need to spend weeks or months making sure your wishes are carried out. Do Not Resuscitate OrdersA Do Not Resuscitate (DNR) order can be a supplement to your healthcare directives. A DNR indicates that you don't wish to receive CPR if your heart stops or you stop breathing. These are usually used by persons who are critically ill and don't want life-prolonging treatment. This document can be placed in your medical record if you are in a hospital or nursing home. You may also request that your doctor place it in your records maintained by the doctor. ResourcesThese resources provide more information about healthcare directives, durable powers of attorney, and do not resuscitate orders. A Gift to Your Family: Planning Ahead for Future Health Care Needs was developed by the State Bar of Wisconsin, the State Medical Society of Wisconsin and the Wisconsin Health and Hospital Association. It provides information about advance directives, health care agents, organ and tissue donation and includes the Wisconsin state forms. Living Wills & Medical Powers of Attorney from nolo.com provides articles about how these documents work, what you can cover, choosing your health care agent, and more. Advance Directives and Do Not Resuscitate Orders from Familydoctor.org which is provided by the American Academy of Family Physicians. This article, in Q&A’s, provides an overview of advance directives and do not resuscitate orders. Myths and Facts About Health Care Advance Directives (pdf) from the American Bar Association Commission on Law and Aging. Answering Your Questions about Health Care from the State Bar of Wisconsin provides answers to questions related to advance directives, health care power of attorney, and other health care law. IQ Fifty Plus Guide is prepared by Remar Sutton and Associates and licensed to Educators Credit Union. Copyright 2007. All rights reserved. Estate TaxesMany people worry that their estate will be subject to estate taxes. The fact is only about 2% of all estates are subject to federal estate tax. Some states also have an estate tax. A few states have an inheritance tax. This section provides an overview of estate and inheritance taxes. Federal Estate TaxesThe federal tax code contains several exemptions and deductions that allow large amounts of property to be transferred free of estate taxes.
IQ tip: If your estate could be $1 million or more, you should consider estate tax planning. You should also watch for changes to estate tax laws that may affect you. State Estate TaxesWisconsin charges estate taxes and are based on the Federal filing requirements. Estates and Fiduciaries Frequently Asked Questions from the Wisconsin Department of Revenue provides more information. Many other states also charge estate taxes. The size of the estate subject to the tax varies from state to state. Check with the state tax or revenue agency for details. To locate the agency's web site, start at State and Local Government on the Net. State Inheritance TaxesA few states have an inheritance tax which is imposed on the beneficiaries of the estate (the people who receive the property) not the estate itself. Currently Indiana, Iowa, Kansas, Kentucky, Louisiana, Maryland, Nebraska, New Jersey, Oregon, Pennsylvania, and Tennessee charge inheritance taxes. For more information, check with the state tax or revenue agency where your beneficiaries reside. Income in Respect of DecedentWhen planning, you don’t want to overlook one category of assets. This category includes assets such as IRAs, untaxed contributions and earnings in retirement accounts, unpaid commissions, bonuses, stock options, and any other income that would have been taxable to the deceased. This is called "income in respect of the decedent" and is also referred to as IRD. The beneficiary of an IRD asset must pay income tax when they receive the IRD income. Depending on the amount of the asset and the tax bracket of the recipient, the tax bite could be substantial. An estate planning professional should be able to help you identify those assets that could become IRD and help you plan appropriately. ResourcesThese resources have more information on estate taxes. Publication 950 Introduction to Estate and Gift Taxes from the IRS provides detailed information about the federal estate tax. Estate Tax from Nolo.com IQ Fifty Plus Guide is prepared by Remar Sutton and Associates and licensed to Educators Credit Union. Copyright 2007. All rights reserved. Financial Powers of AttorneyA power of attorney is an authorization to act on someone else's behalf in a legal or business matter. A financial power of attorney or durable power of attorney for finances is more specific. It is a way for someone to legally manage your finances if you become unable to do so yourself. A financial power of attorney can be broad or limited. For example, you could grant a financial power of attorney to sell a car or house, or to buy and sell securities, or to handle all of your finances. A financial power of attorney can go into effect as soon as you sign it, or you can specify that it doesn't go into effect until a specifically defined event occurs such as a doctor certifies that you are incapacitated (called a "springing" durable power of attorney). If you become incapacitated and don't have a durable financial power of attorney, then your family will probably have to ask a court for authority to handle your affairs. Your durable financial power of attorney ends when you die. Legal experts typically assert that most people should have a durable financial power of attorney. To ensure that you are appropriately covered, you should consult a legal professional. You may need to make mare than one durable financial power of attorney because some financial institutions (including brokerage companies) have their own durable power of attorney form. Answering Your Legal Questions about Durable Powers of Attorney for Finances and Other Property from the State Bar of Wisconsin describes durable powers of attorney and also provides information for persons appointed as an agent in a durable power of attorney. Financial Powers of Attorney from Nolo.com provides more information about how a financial power of attorney works. IQ Fifty Plus Guide is prepared by Remar Sutton and Associates and licensed to Educators Credit Union. Copyright 2007. All rights reserved. Read more...Page 1 of 7 1234567 |
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