Laws help reduce chaos, crimes, disputes and sometimes help the cause of justice.
Laws also impact us when we are alive and we often are ignorant of the consequences when we sign papers. Laws also impact us even when we’re dead and we leave behind our toys and treasures. So, a trip to learn more by going to an Estate Planning Presentation at NMSU sponsored by ITS and Lange Insurance, as well as a conversation with Attorney Douglas Fowles of the Rosebrough, Fowles and Foutz firm across from Smith’s.
First an understanding of some terms:
Assets are a car, home, bank account, insurance, stocks and bonds.
Probate is a formal legal process that names an executor, transfers ownership of the assets of a dead person either by a will or by the State’s order of heirs (i.e., first spouse and children, then parents, then siblings, then distant relatives). It takes 6 months or longer and involves fees, appraisals, filings and a lack of privacy.
Community property are all assets acquired during a marriage, that belong to both spouses equally.
Co-signing is the obligation to pay off a loan if the primary person does not.
Power of Attorney [financial or health] allows someone else to act on your behalf, but the risk is that agent will do whatever they want with your money or health decisions.
Advance Health Care directive specifies wishes about health care if the person becomes unable to state their preferences.
Guardianship/Conservatorship results if a person is incapacitated, and another person assumes control of their decisions. But the process is costly, lengthy and very public.
Will is a written instruction by which someone declares his desires for distribution of his property.
Beneficiary is one entitled to money or property owned by another.
Joint tenancy with rights of survivorship is holding title by 2 or more persons in equal shares. But if a couple adds children or others, that would make them coowners, and decisions about the asset, needs the consent of all since all have equal shares. If only one of them gets divorced or has a bad debt, the asset will be used to satisfy any judgement.
Transfer on death deed is a deed that provides who will own your real property after death.
Trust is legal confidence in a person [trustee] to whom the legal title to property and other assets is conveyed for the benefit of another. It protects assets from creditors and legal disputes.
During your life, you may co-sign loans, get a power of attorney or fill out an Advance Health Care directive or write a will. To avoid probate, you can name beneficiaries, use a transfer on death deed or joint tenancy or a trust.
Estate Planning is a package that often includes many of these legal documents.
This is just general information that doesn’t include all of the details, exceptions, changes in the law and tax considerations. So, you should still consult a trusted lawyer in person who will evaluate your situation and clearly explain your options and consequences. Or if you want to try your hand at an internet direct virtual assistance plan talk to Kathy at Lange insurance for more information.
Today’s Lesson: Good laws are designed to serve and protect.