Free ebooks ==> www.Ebook777.com The Handbook to Wills, Funerals, and Probate Third Edition How to Protect Yourself and Your Survivors THEODORE E HUGHES AND DAVID KLEIN This book is designed to provide accurate and authoritative information in regard to the subject matter covered It is sold with the understanding that the author and the publisher are not engaged in rendering legal, accounting, or other professional service If legal advice or other expert assistance is required the services of a competent professional should be sought The Handbook to Wills, Funerals, and Probate: How to Protect Yourself and Your Survivors Copyright © 2007, 2001, 1987, 1983 by Theodore E Hughes and David Klein Text new to this edition Copyright © 2007 by Theodore E Hughes All rights reserved No part of this book may be reproduced or utilized in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage or retrieval systems, without permission in writing from the publisher For information contact: Facts On File, Inc An imprint of Infobase Publishing 132 West 31st Street New York NY 10001 ISBN-10: 0-8160-6669-8 ISBN-13: 978-0-8160-6669-8 Library of Congress Cataloging-in-Publication Data Hughes, Theodore E The handbook to wills, funerals, and probate : how to protect yourself and your survivors / Theodore E Hughes — 3rd ed p cm Rev ed of: The family guide to wills, funerals, and probate / Theodore E Hughes and David Klein 2nd ed 2001 ISBN 0-8160-6669-8 (hc : alk paper) Wills—United States—Popular works Probate law and practice—United States— Popular works Undertakers and underaking—United States I Klein, David, 1919–2001 II Hughes, Theodore E Family guide to wills, funerals, and probate III Title KF755.Z9 H84 2007 346.7305'2—dc22 2006026726 Facts On File books are available at special discounts when purchased in bulk quantities for businesses, associations, institutions, or sales promotions Please call our Special Sales Department in New York at (212) 967-8800 or (800) 322-8755 You can find Facts On File on the World Wide Web at http://www.factsonfile.com Text design and layout by Erika K Arroyo Cover design by Cathy Rincon Printed in the United States of America MP FOF 10 This book is printed on acid-free paper CONTENTS List of Documents v List of Tables vi Introduction vii Part I MAKING LIFE EASIER FOR YOUR SURVIVORS Your Will and Its Functions Probate Administration and How to Avoid It 33 Joint Ownership and Its Pros and Cons 55 Trusts and Their Versatility Insuring Your Life 109 Gift and Estate Taxes Special Situations 79 119 129 Preparing for Incapacity 137 Funerals, Organ Donations—and Some Alternatives 163 10 Your Letter of Instruction 181 11 When Death Seems Imminent 199 Free ebooks ==> www.Ebook777.com Part II COPING WITH A DEATH IN THE FAMILY A Note to Survivors 217 12 Body Disposal and Funeral Rites 221 13 Negotiating with Funeral Directors 235 14 The Will: Guardianships and Other First Steps 255 15 Sorting Out the Assets 265 16 Settling and Closing the Estate 297 Appendix 321 Glossary 327 Further Reading Index 341 343 www.Ebook777.com DOCUMENTS 1.1 1.2 1.3 3.1 3.2 4.1 4.2 4.3 8.1 8.2 8.3 8.4 8.5 9.1 10.1 10.2 11.1 16.1 16.2 Will Estate Planning Questionnaire Codicil Deed of Real Estate Assignment of Personal Property Totten Trust Account Card Revocable Living Trust Custodial Account for Minor Durable Limited Financial Power of Attorney Durable Financial Power of Attorney Revocation of Power of Attorney Living Will Medical Power of Attorney Organ Donor Card Letter of Instruction Funeral and Burial Preferences Holographic Will Letters of Authority Notice to Creditors v 14 21 29 64 65 88 96 102 142 143 147 151 153 173 182 192 203 310 316 TABLES 1.1 Intestate Succession Under the Uniform Probate Code 1.2 Requirements Governing Wills, by State 11 1.3 Eligibility of Nonresident Executors, by State 18 2.1 Legal Consequences of Various Forms of Ownership 50 4.1 Elements of a Trust Agreement 100 6.1 Federal Gift and Estate Tax 124 6.2 State Inheritance Tax Rates and Exemptions 127 6.3 State Estate Tax Rates and Exemptions 128 12.1 Funeral and Body Disposal Alternatives 229 16.1 Requirements for Small Estate Transfer by Affidavit Procedures, by State 301 16.2 Requirements for Small Estate Summary Probate Procedures, by State 16.3 Executors’ Fees, by State vi 303 311 INTRODUCTION in this world nothing is certain but death and taxes —Benjamin Franklin, 1789 Few of us want to think about death, even fewer feel comfortable talking about it, and fewer still are willing to plan for it In fact, in an age when life has generally become easier and “sensitive” topics are discussed more openly, death has become increasingly difficult to face, and it has outstripped sex as the taboo topic of our times This is not to say that people of any period faced death with equanimity But there are several reasons why the prospect of death is more frightening to us than it was to our parents and grandparents To begin with, death is far less familiar today In our parents’ day, almost everyone over the age of thirty had experienced the death of a parent, a sibling, or a close friend Thus, death was an expected part of daily life, and people learned to accept and cope with it But in our times the dramatic increase in life expectancy has made our encounters with death far less frequent, and when they occur, we have little experience to help us deal with them Our unfamiliarity with death is increased by the fact that most people today die not in their own beds, surrounded by their families, but in hospitals, nursing homes, or hospices attended by impersonal professionals during the last hours of their lives and the first hours vii • The Handbook to wills, funerals, and probate • of their deaths These strangers often make “professional” decisions that may serve their own interests or reflect their own values rather than those of the dying person or the survivors The decrease in family size and the weakening of family bonds have created further problems No longer can we expect our survivors to find emotional comfort and economic shelter among members of a large, extended family on the family farm or in the family business Instead, we must make formal, often complex, and legalistic arrangements to ensure that our assets will be safely and swiftly transferred to our survivors, that our minor children will be taken care of, that whatever business was interrupted by our death will be brought to an orderly close, and that our final medical care will be consistent with our wishes Lastly, in the case of almost every death, the normal process of our survivors’ grief and bereavement is interrupted by their need to deal with a number of bureaucracies—banks and brokers, probate courts, federal and state tax authorities, and other government agencies—many of which did not exist or played no part in deaths that occurred a few decades ago Perhaps all this explains why many people acknowledge that their deepest anxieties about death center not on their own fate but on what will happen—emotionally, socially, and financially—to those they leave behind And psychologists who have studied bereavement conclude that the survivors, no matter how intense their love for the deceased, may actually be grieving more acutely about their own plight—emotional, social, and financial Our purpose in this book, then, is to relieve to some extent your anxieties about your survivors and to ease their distress about their own situation, at least in its material aspects To the extent that we succeed, your concern with your death can focus on your emotional relationships with your survivors, and their grief for you will center on the loss of your companionship and not on “the mess we’ve been left in.” Planning for your own incapacity and death involves three areas that are only slightly related to each other: (1) making endof-life health care decisions, (2) managing the transfer of your assets to your survivors as efficiently as possible, and (3) dealing with your bodily remains in a way that you and your survivors feel is appropriate viii Free ebooks ==> www.Ebook777.com • introduction • The problem of health-care decisions can be substantially alleviated by the preparation of a medical power of attorney—a document that we deal with at length in chapter The “assets” issue we can deal with objectively and precisely Assuming that you prefer to leave as much as possible of your estate to your survivors and as little as possible to tax collectors, creditors, courts, and lawyers, we can show you the right and wrong ways to achieve this end Disposing of your remains and preserving your memory are such personal matters that obviously there can be no right or wrong procedure Whether you prefer an elaborate funeral service and an impressive mausoleum or a minimal-cost “direct disposal” arrangement with a simple memorial service, we have no wish to influence your choice Yet, whatever your preference, we will note more efficient and less efficient ways of having it carried out The easiest way to deal with an unpleasant prospect is by procrastination And this is probably why most Americans die without a will, without an advance directive, and without any plans for the disposition of their bodies or their property Given a life expectancy of some seventy years, most young adults apparently believe that making a will, planning their estate, preparing for incapacity, and doing anything else that forces them to recognize their own mortality can safely be put off until their late sixties But those who take comfort from mortality tables overlook a fact that appears daily on the obituary pages: people die at all ages The most common cause of death before the age of forty is accidents And because accidents sometimes kill husband and wife simultaneously, designating a guardian for your minor or disabled children and planning for the management of their inheritance are absolutely essential, even for parents who have not reached the midpoint of their statistical life expectancies Planning for your survivors should begin as soon as you have acquired assets that give you even a modest net worth or as soon as you become legally responsible for minor children, through birth or through adoption Moreover, it should proceed continuously as your net worth and your kinship network change—as you accumulate wealth, as you gain or lose relatives and friends by birth, marriage, divorce, estrangement, or death, and whenever you change your state of residence This does not mean that you need to devote ix www.Ebook777.com THE HANDBOOK HANDBOOK TO TO WILLS, WILLS, FUNERALS, FUNERALS, AND PROBATE PROBATE • • THE trustor settlor Person who establishes a trust Also called a grantor or undue influence The act of unduly persuading a person to sign, amend, or revoke a will, trust, or other legal document in a way that he would not have done on his own unfunded trust Trust that is not provided with any property, and to which property may later be transferred Also called a standby trust Uniform Anatomical Gift Act Law that permits the donation of bodies and body parts for the use of science, education, or persons needing specific organs Uniform Probate Code (UPC) Set of laws governing wills, trusts, and probate Most states have adopted some parts of the UPC, but only 16 states have adopted this law in its entirety Uniform Prudent Investors Act Law that establishes guidelines for executors and trustees to follow when investing an estate’s assets Uniform Gifts to Minors Act (UGMA) Law that permits gifts of certain property to be held in the name of a custodian for the benefit of a minor In most states, now replaced by the more flexible Uniform Transfers to Minors Act Uniform Transfers to Minors Act (UTMA) Law that permits gifts of any kind of property to be held by a custodian for the benefit of a minor will Legal document, signed and witnessed as required by state law, in which a competent adult designates beneficiaries of his probate assets, nominates an executor to settle his estate, and names a guardian to protect orphaned minor children, if necessary witness Person who observes another sign a legal document (usually a will, trust, or deed) and then signs it to attest that the person’s signature is authentic 340 FURTHER READING Abts, Henry W How to Settle Your Living Trust: Swiftly, Easily, and Safely New York: McGrawHill, 1999 ——— The Living Trust: The Failproof Way to Pass Along Your Estate to Your Heirs 3rd ed New York: McGrawHill, 2003 American Bar Association The American Bar Association Guide to Wills and Estates 2nd ed Chicago: American Bar Association, 2004 Apolinsky, Harold, and Stewart H Welch III J K Lasser’s New Rules for Estate and Tax Planning Rev ed, Waterville, Me.: Thorndike Press, 2006 Bove, Alexander A., Jr Complete Book of Wills, Estates and Trusts 3rd ed New York: Owl Books, 2005 Clifford, Denis Plan Your Estate 7th ed Berkeley, California: Nolo, 2004 Hughes, Theodore E., and David Klein The Executor’s Handbook, Third Edition New York: Facts On File, 2007 Kraemer, Sandy F 60 Minute Estate Planner: Fast and Easy Illustrated Plans to Save Taxes, Avoid Probate, and Maximize Inheritance 3rd ed New York: Amacom, 2006 Lynn, Joanne, Joan Harold, and The Center to Improve Care of the Dying Handbook for Mortals: Guidance for People Facing Serious Illness New York: Oxford University Press, 2001 Plotnick, Charles K., and Stephan R Leimberg How to Settle an Estate: A Manual for Executors and Trustees 3rd ed New York: Plume, 2002 341 THE HANDBOOK HANDBOOK TO TO WILLS, WILLS, FUNERALS, FUNERALS, AND PROBATE PROBATE • • THE Randolph, Mary Ways to Avoid Probate 5th ed Berkeley, Ca.: Nolo, 2006 Randolph, Mary The Executor’s Guide 2nd ed Berkeley, Ca.: Nolo, 2006 Shotwell, Barbara, and Nancy Randolph Greenway Pass It On: A Practical Approach to the Fears and Facts of Planning Your Estate New York: Hyperion, 2001 Strauss, Peter J., and Nancy M Lederman The Complete Retirement Survival Guide: Everything You Need to Know to Safeguard Your Money, Your Health, and Your Independence New York: Facts On File, 2003 342 INDEX Page numbers in italic indicate figures and tables A AARP 161 AB Trust 124 accounts receivable 281 active euthanasia 149 administrator, defined 17 advance directives 149 age of majority 7–8 AIDS 204 amending will 27–28 codicils 28, 29–30 revocation 28, 30–31 American Bar Association, Commission on Law and Aging 157 American Way of Death (Mitford) 235 anatomical gifts 10, 224 See also bodily remains, disposal of ashes, scattering of 169 assets See also probate, assets distributing 209–211 identifying and locating 269–275 letter of instruction, specified in 10 death benefits 194 insurance policies 194 liquid 193 medical benefits 194 stocks and bonds 193 tangible property 194–195 list of 25–26, 207– 208, 258–259 managing 280–285 nonprobate 287 credit union benefits 295 employee benefits 294–295 life insurance 287–290 Social Security benefits 290– 292 veterans’ benefits 292–294 protecting 275–279 reducing probate 35–36 custodial accounts for minors 48–49 343 designating beneficiaries on retirement accounts 42–43 enhanced life estate deed of real estate 41–42 giving away 35–36 irrevocable living trust 47–48 joint ownership 36–37 life insurance 49, 52 pay-on-death bank accounts 37–39 revocable living trust 44–47 transfer-on-death deed of real estate 40–41 transfer-on-death registration of vehicles 40 transfer-ondeath securities registration 40 U.S savings bond registered in beneficiary form 44 revocable living trust and 81 sorting out 265–266 autopsies 222, 227 • THE HANDBOOK TO WILLS, FUNERALS, AND PROBATE • B bank as executor 17–18 fees 17–18 as trustee 84, 93–95 bank accounts joint ownership of 68 pay-on-death 37–39, 61, 267 protecting 278– 279 tax liability 66 beneficiary 23–24 change of 27–28 contingent 16, 23–24 defined 80 designating on retirement accounts 42–43 designation 61 gift forced on inexperience with financial matters 295 life insurance and 118, 298 named in will and pay-on-death bank accounts 38–39 primary 23–24 protection of 106– 108 trust as 81 The Beneficiary Book, A Family Information Organizer 191 beneficiary form, U.S savings bond registered in 44 benefits trigger 160 Best’s Insurance Reports 117 Better Business Bureau 253 birth certificate 292 bodily remains, disposal of body donation 170–171, 234, 258, 323–324 See also anatomical gifts cost of 166–167, 226–227, 229 cremation 168–170, 232–233 direct disposal of 177–178, 233–234 grave burial 167– 168, 232–233 memorial societies 178–179, 234 organ donation 172– 175, 234, 258 survivors, issues for 221–222 body donation 170–171, 234, 258, 323–324 bonding of executor 17 bonds, letter of instruction and 193 See also U.S savings bond books on how to write wills 11, 13 brain death 172 brokerage accounts, protecting 278–279 burial See also bodily remains, disposal of arrangements, specification of 10 information sources 324–325 letter of instruction and 191, 192 C capital gain/loss 67 caregiver children 159 Caring Connections 157 cash value 114 344 casket choice of 175–176, 231, 244–246 open or closed 176, 229, 231 pricing 244–246 CCH Financial Planning Toolkit 157 cemetery arrangements 250 plot See grave chancery court See probate court charitable gifts addition of 28 named in will tax deduction 121, 125 Chartered Life Underwriter (C.L.U.) 117 checking accounts 270–272 children caregiver 159 disabled 129–131, 159 minor court-appointed guardian for 3, 298 custodial accounts for minors 48–49, 101–104, 102–103 designated as joint owner 63 guardian and conservator for See conservator; guardian Medicaid and 159 protecting property of 261–262 trust for See trust, for minor children • INDEX • closed casket 176, 229, 231 clothing prices, for deceased at funeral rituals 247 C.L.U See Chartered Life Underwriter codicils 28, 29–30 cohabitation See unmarried cohabitation cohabitation agreement 133 columbarium 170 community spouse 158–159 computer programs for wills 13 conditional gifts 7, conservator change of 27–28 fee 23 incapacitation and 138 for minor children 20–23 See also guardianships trusts and 106– 108 conservator of the property 106 Consumer Reports 117 contesting a will contingent beneficiary See beneficiary co-ownership See joint ownership; tenancy by the entirety; tenancy in common coroner See medical examiner cosmetic restoration, pricing 247 cottage trust 135 creditors dealing with 317 notice to 316 protection against joint ownership and 57–58 trusts and 84 credit union benefits 295 cremains 168 cremation 168–170, 232–233, 252–253, 324–325 Cremation Association of North America 168 crematorium arrangements 176–177, 250 custodial accounts for minors described 48–49 income tax on 104 irrevocable living trust and 101–104, 102–103 pay-on-death bank account and 38 custodial assistance level of care 160 D Dacey, Norman 34 death See also simultaneous death; wrongful death claims control after — in trust 83–84 at home, issues for survivors 223 imminent —, matters of 199–201 funeral planning 205–206 holographic will 202 life insurance, cashing in 204– 205 living will 202– 204 money 206–212 345 oral will 202 will 201–202 deathbed statement See oral will death benefits 194, 249, 287–295 death certificate 248– 249, 292 death taxes, information sources 323 See also state, death taxes debt, forgiven in will decreasing term insurance 113 disabled children See children, disabled discretionary revocable trust account See Totten trust disinherit survivors 8, 9–10, 60–61 disposal of bodily remains See bodily remains, disposal of divorce 30, 59, 73, 107 do-it-yourself will kits 13 domicile 126 durable power of attorney 139–141, 142–145 E embalming, pricing 246 employee benefits 294–295 endowment policies 115 enhanced life estate deed of real estate 41–42 Equality in Marriage Institute 133 estate 297 See also small estate formal probate administration 307–308 • THE HANDBOOK TO WILLS, FUNERALS, AND PROBATE • closing estate 319 creditors, dealing with 317 distributing remaining estate 319 executor and 309, 311, 314–315 federal estate tax 318 income taxes 318 information sources 326 inheritance tax 318–319 initiation of probate proceedings 308–309 notification of interested parties 315,317 proving the will 315 state estate tax 318–319 probate, necessity of 297–299 estate plan 25 estate planning information sources 321–322 lawyers 24 questionnaire 21–22 estate tax See also federal taxes, estate; state, death taxes generation-skipping trust and 85 joint ownership and 69–70 euthanasia 149–150 excluded impairment clause 161 executor bank as 17–18 change of 27–28 defined 17 described 3, 17–20 eligibility of nonresident 18–20 fee 5, 17, 311–314 named in will 7, 262–263 priority sequence of 309 probate administration 34, 268, 309, 311, 314–315 exemption amount 123 exemption equivalent 123 F family income policies 115–116 Federal Benefits for Veterans and Dependents 294 Federal Deposit Insurance Commission 39 federal taxes estate 124 charitable deduction 125 exemption 123– 124 generationskipping trust and 85 joint ownership and 69–70 payment of 125 probate and 318 stepped-up tax basis 126 taxable estate 122–123 unlimited marital deduction 124– 125 gift 67–69, 105, 119–120, 124 annual — exclusion 120 charitable deduction 121 346 lifetime exemption 120–121 medical bills exemption 121–122 payment of 122 tuition exemption 121–122 unlimited marital deduction 121 income 65–67, 104 Federal Trade Commission, Funeral Rule 234, 235, 238, 252 funeral prices 238– 239, 241 misleading/deceptive statements 239 optional services 239 protection of 240, 253 fee bank 17–18 conservator 23 executor 5, 17 flowers at funeral 176 401(k) designating beneficiaries on 42–43, 45, 267, 274, 279 gross estate and 123 fraudulent conveyance 72 fringe benefits and small estate 301, 305 Frost, Robert 168 funded trust 91 funeral arrangements See also funeral home bill 226–227 bodily remains direct disposal of 177–178, 233–234 disposal of 167– 175 • INDEX • memorial societies 178–179, 234 in general 163– 167 imminent death and 205–206 information sources 324–325 letter of instruction and 191, 192 pricing of 241–244 casket 244–246 clothing 247 cosmetic restoration 247 embalming 246 grave liner 246 miscellaneous services 248– 250 transportation charges 248 vault 246 viewing, visitation, ritual facilities 247–248 rituals burial 232–233 casket, choice of 175–176 casket, open or closed 176, 231 crematorium 176–177, 232– 233 flowers or other tributes 176 graveside 176– 177 postfuneral 177 type and location of service 175, 232 specifications of 10, 163–167, 258 survivors alternatives arrangements to consider 228–233 benefits to 227– 228 issues for 221–222 Funeral Consumers Alliance 179, 253 funeral director See funeral home funeral home See also Federal Trade Commission, Funeral Rule; funeral arrangements cash outlays by 250–251 involvement of two homes 251 negotiating with 235–238 funeral prices 238–239 misleading/ deceptive statements 239 optional services 239 seeking redress with 253–254 selecting 222–223, 234 state regulations 240–241 viewing, visitation, ritual facilities prices 247–248 Funerals: A Consumer Guide 240 G gay rights and cohabitation 133 general power of attorney 141 generation-skipping trust 85 347 gifts addition of 28 anatomical 10, 224, 258 charitable 7, 28 conditional 7, to minors 48–49 named in will gift tax See federal taxes, gift; state, death taxes government benefits, information sources for 325–326 grantee-beneficiary 40–41 grantor 80–81 grave burial 167–168, 232–233 site, purchase of 164 grave liner pricing 246 graveside rituals 176– 177, 229 grief, survivors’ feelings of 221 gross estate 122–123 group insurance policy 112 guardian 3, 298 See also guardianships guardian of the person 106, 259–261 guardianships incapacitation and 138 for minor children change of 27–28 court-appointed described 20–23 financial burden of 23 named in will 7, 259–261 trusts and 84 “Guide to Long-Term Care Insurance” 161 • THE HANDBOOK TO WILLS, FUNERALS, AND PROBATE • H handwritten will See holographic will headstones See monuments health care insurance 159–160 benefits trigger 160 daily benefit amount 160 duration of benefits 160–161 levels of care 160 Health Insurance Association of America 161 heirs at law 61 hiding places, in letter of instruction 196 holographic will 10–11, 202, 203 home death at 223 protecting — and contents 276–277 second 134–135 How to Avoid Probate (Dacey) 34 I incapacity, preparing for 137 funding long-term nursing care 157– 158 health care insurance 159–161 Medicaid 158– 159 life and death, issues of 148–149 living will 150– 152 medical power of attorney 152, 153–156, 156–157 right to die 149– 150 managing finances 137 guardianships and conservatorships 138 power of attorney 139–148 representative payeeships 138–139 revocable living trust 139 shared ownership 139 incentive provision 107 income taxes (state and federal) custodial accounts and 104 joint ownership and 65–67 probate and 318 inexperience of survivors 221 information sources death and taxes 323 estate planning 321–322 estate settling and closing 326 funeral, burial, cremation 324–325 government benefits 325–326 life insurance 322 living wills and medical powers of attorney 323 organ, tissue, body donations 323–324 informed consent 149 inheritance age of 7–8 joint ownership and 58, 74 unintended — and joint ownership 60–61 348 inheritance taxes 127– 128, 127, 318–319 institutional trustee See bank; trust company insurance 194 See also health care insurance; life insurance interest-adjusted cost index 117 interested parties, notification of 315,317 intermediate level of care 160 intestacy 257 intestate dying 3, 4, 257 succession under Uniform Probate Code IRA designating beneficiaries on 42–43, 45, 267, 274, 279 gross estate and 123 irrevocable living trust custodial account for minors 101–104, 102–103 described 47–48, 100–101 formal 105 mini forms of 101 trust for minors 104–105 IRS 49 item pricing system for funerals 243 J jewelry 275 Johnson, Ladybird 41 Johnson, Lyndon B 41 joint ownership cons of 55–56, 58 inflexibility 59–60 • INDEX • risk 59 unintended inheritance 60–61 described 56 establishing 62, 65 and giving away probate assets 36–37 gross estate and 123 incapacitation and 139 not a will substitute 61–62 pros of 55–56 convenience 57 inheritability 58 protection against creditors 57–58 symbolic significance of 56–57 tax advantages 58 spouse and 6–7 tax consequences of federal estate tax 69–70 federal gift tax 67–69 income taxes, state and federal 65–67 terminating 70–71 trust and 83–84 joint tenancy See joint ownership joint tenants (JT TEN) 56, 63 joint tenants with rights of survivorship (JT WROS) 56 JT TEN See joint tenants JT WROS See joint tenants with rights of survivorship K Keogh 45, 267, 274, 279 keys, in letter of instruction 195–196 kiddie tax 104 L Ladybird deed 41–42 Lambda Legal Foundation 133 land contracts 281 lawyer estate planning 24 needs to know 16 assets, list of 16, 25–26 beneficiaries 23–24 executor 17–20 guardian and conservator for minor children 20–23 money bequests 24–25 property gifts 25 preparing will 10–16 trust preparation and 99 letter of authority 309, 310 letter of guardianship 259 letter of instruction body and organ donations 193 described 181, 190–191 example 182–190 funeral and burial preferences in 191, 192 information in 195 hiding places 196 inconspicuous valuables 196– 197 keys 195–196 349 keeping up to date 197–198 letter to the world 197 liabilities and 195 list of assets specified in 10, 270 death benefits 194 insurance policies 194 liquid 193 medical benefits 194 stocks and bonds 193 tangible property 194–195 letter to the world See message to the world liabilities inventory 207–208 letter of instruction and 195 reviewing 285–287 life estate 41 life insurance cashing in 204–205 claim for 297–288 fraud in original application 289 premium payment lapse 289–290 promptness of submitting 288 suicide 289 comparing policy costs 117–118 described 109–110 designating beneficiaries 118 determining amount of coverage 110– 111 gross estate and 123 group 294 • THE HANDBOOK TO WILLS, FUNERALS, AND PROBATE • information sources 116–117, 322 probate and 49, 267, 298 revocable — trust 45, 52, 92 types of 113 endowment policies 115 family income policies 115– 116 term insurance 113–114 whole life policies 114–115 where to buy 112 who should not be covered 116 Life Insurance Settlement Association 204 limited power of attorney 141 liquid assets 193 living trust See irrevocable living trust; revocable living trust living will described 150 example of 151–152 imminent death and 202–204 signing 150–151 M mail, deceased’s 272– 274 majority, age of See age of majority marital tax deductions 121, 124–125 marriage, second 131– 132 Medicaid caregiver children 159 children 159 community spouse 158–159 disabled children 129, 130, 159 long-term nursing care and 157–158, 161 recipient 158 medical benefits 194 medical bills and gift tax exemption 121–122 medical examiner 223 medically necessary 160 medical power of attorney 152, 153– 156, 156–157, 323 Medigap policies 158 memorial service 229, 248 memorial societies 178–179, 234, 235 mental competence 28 message to the world 10, 197 MHP Network 164 military service-related death 293 minors See children, minor; gifts, to minors; trust, for minor children Mitford, Nancy 235 money bequests 24–25 imminent death and 206–207 asset and liability inventory 207– 208 assets, distributing 209–211 probate avoidance 208–209 survivors, making things easier for 211–212 tax avoidance 208–209 350 monuments 164, 168 motor vehicles 278, 300–301 N National Anatomical Service 171 National Kidney Foundation 174 National Viatical Association 204 net cost index 117– 118 net payment index 118 nonprobate assets See assets, nonprobate nonresident executor, eligibility of 18–20 nursing care, funding long-term 157–158 health care insurance 159–161 Medicaid and 158– 159 O obituary notice 250 open casket 176, 229, 231 oral will 11, 202 Order Closing Estate and Discharging Executor 315 “The Organ and Tissue Donor Program” 174 organ donation 172– 175, 193, 222, 258, 323–324 Organ Donor Card 171, 173 173–174 organ transplantation 172 orphans’ court See probate court Orthodox Jews 170, 245 ownership, legal consequences of 50, 51 • INDEX • P pallbearers 249–250 partition lawsuit 59, 71 passive euthanasia 149 patient advocate 156 pay-on-death (POD) bank accounts 37– 38, 278 advantages of 39 choosing beneficiaries 38–39 disadvantages of 39 beneficiary designation 61, 267 gross estate and 123 personal property 8, 63, 65 Personal Record 191 personal representative See executor pets, protecting 135– 136 pet trust 135–136 philosophy See message to the world POD bank accounts See pay-on-death, bank accounts poor man’s will 36, 58 See also joint ownership postfuneral rituals 177 pour-over will 93 power of attorney See also medical power of attorney acceptability of 146 customizing 148 durable financial 139–141, 142–145 general 141 limited 141 revoking 146, 147 terminating 147– 148 pre-existing condition 161 prenuptial agreement 132 Presidential Memorial Certificate 292 pricing system for funerals 242–244 primary beneficiary See beneficiary private ritual service 232 probate administration 33, 263 assets and 266– 269 formal 307–319 problems of 33–35 reducing assets 35–52 summary 306– 307 assets 9, 35, 81, 266–269, 298–299 See also assets, reducing probate avoidance 90, 208–209 estate 123 procedures 303– 305, 308–309 steps involving 259 executor, appointment of 262–263 guardians of minors 259– 261 protecting minor’s property 261– 262 probate court 33, 268 promissory notes 281 property, letter of instruction and 194– 195 351 property gifts 25 protecting will 26–27 public ritual service 232 R real estate deed of 64 enhanced life estate deed of 41–42 joint ownership of 63, 68–69 transfer-on-death deed of — 40–41, 123 redress, with seeking funeral home 253– 254 representative, personal See executor representative payeeships 138–139 retirement accounts designating beneficiaries on 42–43, 267 naming others 43 naming spouse 43 gross estate and 123 revocable life insurance trust 92 revocable living trust choosing trustee 93–95 choosing type of 91–93 conditions on beneficiary 39 described 44–47, 85–86 establishing 95, 99 example of 96–99 formal 87, 89–91 incapacitation and 139 probate avoidance feature of 90 • THE HANDBOOK TO WILLS, FUNERALS, AND PROBATE • significant characteristics of 80–81 Totten trust 86–87, 88–89 revocation of power of attorney 146, 147 of will 28, 30–31 revoking will See amending will; revocation rights of survivorship 56, 73 right to die 149–150, 225–226 ritual alternatives 175–177 S safe-deposit box 27, 211–212, 256, 274–275 savings bank life insurance 112 savings bond See U.S savings bond Section 2503(c) trust See trust, for minor children securities joint ownership 66, 68 registration See transfer-on-death, securities registration self-proved will 26 SEP 45, 267, 279 service-related death 293 settler See grantor signing will 26–27 simultaneous death 3, 8, 62, 298 skilled care level of care 160 small estate described 299–300 information sources 326 liabilities and 286 motor vehicles 300–301 probate avoidance 34, 35, 208, 262– 263 summary probate administration 269, 306–307 summary probate procedures 303– 305 transfer by affidavit 301–303, 306 wages and fringe benefits 301, 305 Social Security benefits 139, 226, 249, 272, 290–292 long-term nursing care and 158 Social Security Administration 133, 139 guidelines for special needs trust 130 special needs trust 84, 130–131 special situations disabled child, protecting 129–131 pets, protecting 135–136 second home, passing on 134–135 second marriage 131–132 unmarried cohabitation 132– 134 spendthrift provision 107 spouse joint ownership 6–7 naming as beneficiary on retirement account 43 simultaneous death of 3, 8, 62 352 springing power of attorney 141, 146 sprinkling trust 107 SSI See Supplemental Security Income standard adult funeral pricing 242, 248 standby trust 91–92 state death taxes 126 estate 128, 318– 319 gift 128 inheritance 127– 128, 127 executor fees 311– 314 funeral regulations 240–241 income taxes and joint ownership 65–67 nonresident executor, eligibility of 18–20 requirements governing wills 11–13, 27–28 small estate probate procedures 303–305 transfer by affidavit requirements 301–303, 306 statutory will forms 13 stepped-up tax basis 126, 212 stocks 193, 267 succession, intestate successor trustee 84 suicide 289 summary probate administration 306–307 supplemental needs trust See special needs trust • INDEX • Supplemental Security Income (SSI) 129, 130–131 surrender index 117– 118 surrogate 156 surrogate court See probate court survivors body disposal and funeral rites 221– 222 death at home, issues of 223 disinherit 8, 9–10 funeral arrangements alternatives to 228–233 benefits of 227– 228 obtaining services 233–234 grief, feelings of 221 inexperience of 221 legal constraints 223 anatomical gifts 224 autopsies 227 deceased’s wishes 224–225 funeral bill, paying 226–227 right to die decisions 225– 226 making things easier for 211–212 order of pressures on 222– 223 responsibilities by urgency 217–219 ship, rights of 56, 73 T tax avoidance and imminent death 208–209 tax consequences of joint ownership advantages 58 federal estate tax 69–70 federal gift tax 67–69 income taxes, state and federal 65–67 of tenancy by the entirety 72 of tenancy in common 74 of trusts 84–85 taxes See specific tax Tax Law (2001) 119, 122, 123, 126 tenancy by the entirety 71–73 establishing 72–73 tax consequences of 72 terminating 73 tenancy in common 73–74 establishing by agreement 75 court action 75–76 default 76–77 transfer 76 tax consequences of 74 terminating 77 TEN COM See tenancy in common term insurance 113– 114 testamentary time, pressures of 222–223 tissue donation See organ donation TOD securities registration See transfer-on-death, deed of real estate; 353 transfer-on-death, securities registration Totten trust 86–87, 88–89 transfer by affidavit 269 transfer-on-death (TOD) beneficiary designation 61, 279 deed of real estate 40–41, 123 registration of vehicles 40 securities registration 39, 40, 61, 123, 267 small estate requirements by state 301–303, 306 transportation charges for funeral 248 trust See also cottage trust; generation-skipping trust; irrevocable living trust; pet trust; revocable living trust; special needs trust; sprinkling trust advantages of 81–82 control after death 83–84 convenience and management of 82 flexibility during life 82–83 protection against creditors 84 tax consequences of 84–85 described 80–81 for minor children 7, 23, 104–105, 261–262 protection of beneficiaries and 106–108 versatility of 79–80 Free ebooks ==> www.Ebook777.com • THE HANDBOOK TO WILLS, FUNERALS, AND PROBATE • trust agreement 45–48, 100 trust company 93–95 trust document 95–100 trustee change of 27–28 choosing 93–95 defined 80 named in will 7, 23 successor 84 trustor See grantor tuition and gift tax exemption 121–122 two-unit pricing system for funerals 243 U unfunded trust 91, 92–93 Uniform Anatomical Gift Act 170, 224 Uniform Gifts to Minors Act 48, 101, 104 Uniform Nonprobate Transfers On Death Act 61 Uniform Probate Code beneficiary designation 61 debt forgiveness 286 order of succession personal representative, use of term 17 summary probate administration 307 transfer by affidavit 306 Uniform Simultaneous Death Act 62 Uniform Transfers to Minors Act 38, 48, 101 unit pricing system for funerals 242 universal life insurance 116 unmarried cohabitation 132–134 U.S Postal Service 273 U.S savings bond 44, 68 U.S Treasury checks 272–273 V valuables, in letter of instruction 196–197 variable life insurance 116 vault, pricing 246 vehicles, transfer-ondeath registration of 40 Veteran Administration death benefits 226, 249, 272, 292–293 nonservice-related death 293–294 service-related death 293 viatical settlements 204–205 W wages and small estate 301, 305 waiver of premium 161 whole life policies 114–115 will 255 assets, identification of 258–259 disposal of body specifications in 179–180, 224–225, 258 example of 14–16 final review of 212 functions of amending or revoking 27–31 in general 3–7 looking toward probate 31 protecting 26–27 signing 26–27 what it can 7–8 what it can’t 8–10 what lawyer needs to know 16–26 who should prepare 10–16 funeral specifications in 179–180, 258 holographic See holographic will imminent death and 201–202 location of 27, 256–257 oral See oral will probate and 259, 263 executor, appointment of 262– 263 guardians of minors 259–261 protecting minor’s property 261– 262 proving 315 self-proved See selfproved will state requirements governing 11–13 statutory forms 13 wishes of deceased 224–225 word choice in will 10 wrongful death claims 281–285, 298 354 www.Ebook777.com ... Theodore E The handbook to wills, funerals, and probate : how to protect yourself and your survivors / Theodore E Hughes — 3rd ed p cm Rev ed of: The family guide to wills, funerals, and probate /... dependent children, and since many accidents kill husband and wife simultaneously, • THE HANDBOOK TO WILLS, FUNERALS, AND PROBATE • only a will can ensure that the person they choose will be appointed... 13 • THE HANDBOOK TO WILLS, FUNERALS, AND PROBATE • Figure 1.1 WILL LAST WILL AND TESTAMENT OF JOHN J JONES I, JOHN J JONES domiciled in Lansing, Michigan, declare this to be my last will, hereby