Comments on: A Brief Guide to Creating a Will http://www.getrichslowly.org/blog/2006/10/31/a-brief-guide-to-creating-a-will/ personal finance that makes cents Fri, 16 May 2008 03:46:09 +0000 http://wordpress.org/?v=2.5.1 By: A Brief Overview of Estate Planning Software ? Get Rich Slowly http://www.getrichslowly.org/blog/2006/10/31/a-brief-guide-to-creating-a-will/#comment-103242 A Brief Overview of Estate Planning Software ? Get Rich Slowly Wed, 31 Oct 2007 12:00:18 +0000 http://www.getrichslowly.org/blog/2006/10/31/a-brief-guide-to-creating-a-will/#comment-103242 [...] that spooky haunted time of year — my annual post about estate planning! Last year I shared a brief guide to creating a will. Today I’m going to look at a recent New York Times article by Christine Larson that provides [...] [...] that spooky haunted time of year — my annual post about estate planning! Last year I shared a brief guide to creating a will. Today I’m going to look at a recent New York Times article by Christine Larson that provides [...]

]]> By: Ed http://www.getrichslowly.org/blog/2006/10/31/a-brief-guide-to-creating-a-will/#comment-97892 Ed Tue, 18 Sep 2007 15:15:12 +0000 http://www.getrichslowly.org/blog/2006/10/31/a-brief-guide-to-creating-a-will/#comment-97892 This is a very thorough article. Most people wait too late to do a Will, and those that want to do a Will, try to do it on the cheap without thinking of the consequences. Here are 2 more site about Wills that I came across. quite interesting & different if you are thinking of writing a Will. http://writingawill.wordpress.com http://how-to-write-a-will.blogspot.com This is a very thorough article. Most people wait too late to do a Will, and those that want to do a Will, try to do it on the cheap without thinking of the consequences.

Here are 2 more site about Wills that I came across. quite interesting & different if you are thinking of writing a Will.

http://writingawill.wordpress.com

http://how-to-write-a-will.blogspot.com

]]> By: Some Brief Thoughts on Life and Death ? Get Rich Slowly http://www.getrichslowly.org/blog/2006/10/31/a-brief-guide-to-creating-a-will/#comment-91787 Some Brief Thoughts on Life and Death ? Get Rich Slowly Sat, 07 Jul 2007 02:59:35 +0000 http://www.getrichslowly.org/blog/2006/10/31/a-brief-guide-to-creating-a-will/#comment-91787 [...] Create a will. I know you’re young, and I know you’re not going to die any time soon, but create a will anyhow. A will provides clear legal instructions regarding your intentions, and is crucial for those with even modest assets. [...] [...] Create a will. I know you’re young, and I know you’re not going to die any time soon, but create a will anyhow. A will provides clear legal instructions regarding your intentions, and is crucial for those with even modest assets. [...]

]]> By: Howard Marks http://www.getrichslowly.org/blog/2006/10/31/a-brief-guide-to-creating-a-will/#comment-80865 Howard Marks Fri, 09 Mar 2007 18:50:57 +0000 http://www.getrichslowly.org/blog/2006/10/31/a-brief-guide-to-creating-a-will/#comment-80865 Great article, many thanks for posting. For anyone in the UK who has not written their will yet I highly recommend <a href="http://www.surewill.co.uk" rel="nofollow">Sure Will</a>, who wrote my will for me last year. It was a steal at £49 and I was actually able to talk to a human being on the phone (after a bad experience with another site - tenminutewill - who wouldn't even answer my call :S). H Great article, many thanks for posting. For anyone in the UK who has not written their will yet I highly recommend Sure Will, who wrote my will for me last year. It was a steal at £49 and I was actually able to talk to a human being on the phone (after a bad experience with another site - tenminutewill - who wouldn’t even answer my call :S).

H

]]> By: moneysmartlife http://www.getrichslowly.org/blog/2006/10/31/a-brief-guide-to-creating-a-will/#comment-18669 moneysmartlife Mon, 20 Nov 2006 01:51:40 +0000 http://www.getrichslowly.org/blog/2006/10/31/a-brief-guide-to-creating-a-will/#comment-18669 A will is another tool in our personal finance toolbelt. As you mention the complexity and cost often cause us to avoid its use. I found a way to get a quality will drafted by a lawyer for free, check it out http://www.moneysmartlife.com/2006/11/14/who-wants-free-estate-planning A will is another tool in our personal finance toolbelt. As you mention the complexity and cost often cause us to avoid its use.

I found a way to get a quality will drafted by a lawyer for free, check it out http://www.moneysmartlife.com/2006/11/14/who-wants-free-estate-planning

]]> By: Binary Dollar http://www.getrichslowly.org/blog/2006/10/31/a-brief-guide-to-creating-a-will/#comment-13219 Binary Dollar Sun, 05 Nov 2006 15:14:38 +0000 http://www.getrichslowly.org/blog/2006/10/31/a-brief-guide-to-creating-a-will/#comment-13219 <strong>BD’s Favorite Personal Finance Posts This Week (11/5/06)...</strong> Happy Sunday, Sucka MCs. Personal finance bloggers were tapping on their keyboards to give you the very best advice and stories in personal finance. Rock and roll. Here are 5 posts around the horn this week: Building Wealth on $1.67 Per Day! @ All Fin... BD’s Favorite Personal Finance Posts This Week (11/5/06)…

Happy Sunday, Sucka MCs. Personal finance bloggers were tapping on their keyboards to give you the very best advice and stories in personal finance.
Rock and roll.
Here are 5 posts around the horn this week:
Building Wealth on $1.67 Per Day! @ All Fin…

]]> By: BD’s Favorite Personal Finance Posts This Week (11/5/06) » Personal Finance - Save Money - Retirement - Financial Freedom http://www.getrichslowly.org/blog/2006/10/31/a-brief-guide-to-creating-a-will/#comment-13218 BD’s Favorite Personal Finance Posts This Week (11/5/06) » Personal Finance - Save Money - Retirement - Financial Freedom Sun, 05 Nov 2006 15:14:21 +0000 http://www.getrichslowly.org/blog/2006/10/31/a-brief-guide-to-creating-a-will/#comment-13218 [...] A Brief Guide to Creating a Will @ Get Rich Slowly. Now this isn’t for me since I have no family to care for but it is a good primer of what I need to do when I do finally grow up and reproduce. [...] [...] A Brief Guide to Creating a Will @ Get Rich Slowly. Now this isn’t for me since I have no family to care for but it is a good primer of what I need to do when I do finally grow up and reproduce. [...]

]]> By: Get Rich Slowly » Best of October, and How to Subscribe to GRS http://www.getrichslowly.org/blog/2006/10/31/a-brief-guide-to-creating-a-will/#comment-12646 Get Rich Slowly » Best of October, and How to Subscribe to GRS Thu, 02 Nov 2006 06:38:32 +0000 http://www.getrichslowly.org/blog/2006/10/31/a-brief-guide-to-creating-a-will/#comment-12646 [...] Oct. 31st: A brief guide to creating a will [...] [...] Oct. 31st: A brief guide to creating a will [...]

]]> By: Dave http://www.getrichslowly.org/blog/2006/10/31/a-brief-guide-to-creating-a-will/#comment-12413 Dave Tue, 31 Oct 2006 19:07:05 +0000 http://www.getrichslowly.org/blog/2006/10/31/a-brief-guide-to-creating-a-will/#comment-12413 For Debbie- a codicil is an amendment to a will. It *could* include a specific list of property to be distributed, but why not just put that into the will to begin with? Second, in executing a codicil the same formalities need to be observed as you would have with creating a will. The moral of the story- you can't simply attach a list to your will and expect it to have binding effect. It should be dealt with up front. For Blake- yes, a trust can be a powerful tool, but it is vulnerable to many of the same flaws as a will. You can contest a trust in court and it's done all the time. The best way to ensure that no-one *successfully* contests your estate plan is to do your best to cover all the bases with appropriate legal counsel. You can't prevent a disgruntled child, relative, etc. from contesting but you can make it really hard for them to win. In setting up a trust that has contingencies to take place after the person dies, the grantor needs to take great care in selecting a trustee that's going to follow the rules. In your example, if you put wife in charge of running the trust the odds are good that over time the majority of the assets would disappear from the trust's list of assets and over time be turned into wife's assets. This is a breeding ground for potential litigation. Lastly, your example of the divorcing couple would work but only if the woman was dumb enough to take that kind of deal. Presumably her lawyer would be smart enough to talk her out of it. Just because she didn't work doesn't mean she's not entitled to 50% of the principle. Even if the trust was set up ahead of time a divorce court will go through that thing like a hot knife through butter (in most cases). Big exception if there's a pre-nup. For Debbie- a codicil is an amendment to a will. It *could* include a specific list of property to be distributed, but why not just put that into the will to begin with? Second, in executing a codicil the same formalities need to be observed as you would have with creating a will. The moral of the story- you can’t simply attach a list to your will and expect it to have binding effect. It should be dealt with up front.

For Blake- yes, a trust can be a powerful tool, but it is vulnerable to many of the same flaws as a will. You can contest a trust in court and it’s done all the time. The best way to ensure that no-one *successfully* contests your estate plan is to do your best to cover all the bases with appropriate legal counsel. You can’t prevent a disgruntled child, relative, etc. from contesting but you can make it really hard for them to win.

In setting up a trust that has contingencies to take place after the person dies, the grantor needs to take great care in selecting a trustee that’s going to follow the rules. In your example, if you put wife in charge of running the trust the odds are good that over time the majority of the assets would disappear from the trust’s list of assets and over time be turned into wife’s assets. This is a breeding ground for potential litigation.

Lastly, your example of the divorcing couple would work but only if the woman was dumb enough to take that kind of deal. Presumably her lawyer would be smart enough to talk her out of it. Just because she didn’t work doesn’t mean she’s not entitled to 50% of the principle. Even if the trust was set up ahead of time a divorce court will go through that thing like a hot knife through butter (in most cases). Big exception if there’s a pre-nup.

]]> By: Blake http://www.getrichslowly.org/blog/2006/10/31/a-brief-guide-to-creating-a-will/#comment-12393 Blake Tue, 31 Oct 2006 17:10:54 +0000 http://www.getrichslowly.org/blog/2006/10/31/a-brief-guide-to-creating-a-will/#comment-12393 Another thing to consider: Anna Nicole Smith. Seriously. Her husband had a will and she was not in it (ie he did not want her to have his money). She sued, got his money. Point is, wills can be contested in court. A trust cannot. A trust is a legal, binding document. If you want the power to reach from the grave and ensure that your wishes will be carried out EXACTLY, set up a trust. Life still changing? Set up a revocable trust. Example of the power and scope of a trust (and not whether to be mentioned “Man” is a jerk or not): Man and Woman marry at 20. Both begin with nothing. Man works, woman does not. They build a household with modest assets. Man and woman divorce at 50. Man (and his lawyer) knows that everything Man was able to accomplish and accumulate was with the help of his former bride. So, Man says “alright, I am going to give you the house and some money to live. But I don’t want the house to leave the family and am not giving you money, I am only going to allow you to take the interest and earnings of my money, never the principle.” Man dies after the ink is dry. For the house: trust will ensure that if Woman sells house, proceeds may only be used to buy/rent another house. Also, Woman can be only person on title of house or subsequent houses. For the money: trust will not allow Woman to touch principal. After Woman dies: trust will ensure that the money and the house (or proceeds) go to whatever Man wants (children, university, etc). And none of this is optional. It must be done. It is what it is when the trust was set up. Point two, when you begin getting yourself into complex financial situations, hire a smart accountant and lawyer. Please. Money is far from being everything, but it's important. Another thing to consider: Anna Nicole Smith. Seriously. Her husband had a will and she was not in it (ie he did not want her to have his money). She sued, got his money.

Point is, wills can be contested in court. A trust cannot. A trust is a legal, binding document. If you want the power to reach from the grave and ensure that your wishes will be carried out EXACTLY, set up a trust. Life still changing? Set up a revocable trust.

Example of the power and scope of a trust (and not whether to be mentioned “Man” is a jerk or not): Man and Woman marry at 20. Both begin with nothing. Man works, woman does not. They build a household with modest assets. Man and woman divorce at 50. Man (and his lawyer) knows that everything Man was able to accomplish and accumulate was with the help of his former bride. So, Man says “alright, I am going to give you the house and some money to live. But I don’t want the house to leave the family and am not giving you money, I am only going to allow you to take the interest and earnings of my money, never the principle.” Man dies after the ink is dry.

For the house: trust will ensure that if Woman sells house, proceeds may only be used to buy/rent another house. Also, Woman can be only person on title of house or subsequent houses. For the money: trust will not allow Woman to touch principal. After Woman dies: trust will ensure that the money and the house (or proceeds) go to whatever Man wants (children, university, etc). And none of this is optional. It must be done. It is what it is when the trust was set up.

Point two, when you begin getting yourself into complex financial situations, hire a smart accountant and lawyer. Please. Money is far from being everything, but it’s important.

]]> By: Debbie http://www.getrichslowly.org/blog/2006/10/31/a-brief-guide-to-creating-a-will/#comment-12385 Debbie Tue, 31 Oct 2006 15:32:17 +0000 http://www.getrichslowly.org/blog/2006/10/31/a-brief-guide-to-creating-a-will/#comment-12385 Another issue is that you can't just make a will and be done forever. Things change. For example, I decided I wanted everything to go to my mom because she's responsible and fair and she would distribute things well if my dad and siblings could use them. But now that I've been living with someone for many years, I'd like him to at least get the house. I do expect my parents to die before me, and then I'll have to find someone else responsible. You can also make an extra attachment (codicil) to list specific items you own and who should get them. You know better than most people who most appreciates various items in your possession. When you die, the executor can be overwhelmed by the sheer amount of your stuff; I imagine that knowing that one person will take care of your sci fi book collection and another will get all your rock-climbing gear, etc. could be very helpful. You have to keep names and contact information up to date, but you can change this part for free as often as you want. I really like that retirement accounts are not governed by wills--you can update them as often as you need quickly and for free. Another issue is that you can’t just make a will and be done forever. Things change. For example, I decided I wanted everything to go to my mom because she’s responsible and fair and she would distribute things well if my dad and siblings could use them. But now that I’ve been living with someone for many years, I’d like him to at least get the house. I do expect my parents to die before me, and then I’ll have to find someone else responsible.

You can also make an extra attachment (codicil) to list specific items you own and who should get them. You know better than most people who most appreciates various items in your possession. When you die, the executor can be overwhelmed by the sheer amount of your stuff; I imagine that knowing that one person will take care of your sci fi book collection and another will get all your rock-climbing gear, etc. could be very helpful. You have to keep names and contact information up to date, but you can change this part for free as often as you want.

I really like that retirement accounts are not governed by wills–you can update them as often as you need quickly and for free.

]]> By: Dave http://www.getrichslowly.org/blog/2006/10/31/a-brief-guide-to-creating-a-will/#comment-12382 Dave Tue, 31 Oct 2006 15:21:44 +0000 http://www.getrichslowly.org/blog/2006/10/31/a-brief-guide-to-creating-a-will/#comment-12382 Jay- Check with your state bar association to see if there's any other remedy you might have. In Oregon, for example, there's something known as the Client Security Fund that is designed to assist people who have had their lawyer do something like what you've described. This is not to address situations in which someone feels that they didn't get what they wanted to get, but rather for situations in which the lawyer has literally jumped ship and absconded with the $$. Jay-
Check with your state bar association to see if there’s any other remedy you might have. In Oregon, for example, there’s something known as the Client Security Fund that is designed to assist people who have had their lawyer do something like what you’ve described. This is not to address situations in which someone feels that they didn’t get what they wanted to get, but rather for situations in which the lawyer has literally jumped ship and absconded with the $$.

]]> By: Jay @ Dumb Little Man http://www.getrichslowly.org/blog/2006/10/31/a-brief-guide-to-creating-a-will/#comment-12372 Jay @ Dumb Little Man Tue, 31 Oct 2006 13:49:59 +0000 http://www.getrichslowly.org/blog/2006/10/31/a-brief-guide-to-creating-a-will/#comment-12372 Hey JD - great post. This subject intimidates a lot of people and it's critical that everyone get their wills mapped out and official. One point that I have to toss in is that I'd be sure to perform some due diligence on the attorney before you get knee deep with him/her. I recently had a terrible experience with an unethical attorney and I am out $600 because he took the money and ran. I am now pursuing a small claims court case although I'd love to get him in some trouble. Just do your homework, just because they went to school for more years than you doesn't mean that all attorneys are legit. Jay Hey JD - great post. This subject intimidates a lot of people and it’s critical that everyone get their wills mapped out and official.

One point that I have to toss in is that I’d be sure to perform some due diligence on the attorney before you get knee deep with him/her.

I recently had a terrible experience with an unethical attorney and I am out $600 because he took the money and ran. I am now pursuing a small claims court case although I’d love to get him in some trouble.

Just do your homework, just because they went to school for more years than you doesn’t mean that all attorneys are legit.

Jay

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