Free Money Matters.com

how much money do you keep?

It is not how much you make that counts but how much money you keep.

- Robert Kiyosaki

Does all property have to go through probate?

from www.nolo.com some more information on probate...

"Does all property have to go through probate when a person dies?

No. Most states allow a certain amount of property to pass free of probate, or through a simplified probate procedure. In California, for example, you can pass up to $100,000 of property without probate, and there's a simple transfer procedure for any property left to a surviving spouse.

In addition, property that passes outside of your will -- say, through joint tenancy or a living trust -- is not subject to probate."

Should you avoid probate?

from the www.nolo.com website some answers regarding whether you should avoid probate...

"Probate rarely benefits your beneficiaries, and it always costs them money and time. Probate makes sense only if your estate will have complicated problems, such as many debts that can't easily be paid from the property you leave.

Whether to spend your time and effort planning to avoid probate depends on a number of factors, most notably your age, your health and your wealth. If you're young and in good health, adopting a complex probate-avoidance plan now may mean you'll have to re-do it as your life situation changes. And if you have very little property, you might not want to spend your time planning to avoid probate. Your property may even fall under your state's probate exemption; most states allow a certain amount of property to pass free of probate, or through a simplified probate procedure.

But if you're in your 50s or older, in ill health or own a significant amount of property, you'll probably want to do some planning to avoid probate."

Married Couples - Who owns what?

from www.findlaw.com comes a really great summary of community property vs. separate property for married couples...this extremely helpful when you are drafting up a will - to know who owns what can prevent a lot of problems...

"Married people can still own separate property. For example, property inherited by just one spouse belongs to that spouse alone. A spouse can leave separate property to anyone; it doesn't have to go to the surviving spouse.

Married couples don't have to accept the rules about what is community property and what isn't. They can sign a written agreement that makes some or all community property the separate property of one spouse, or vice versa.

These rules apply no matter whose name is on the title document to a particular piece of property. For example, a married woman in a community property state may own a car in only her name -- but legally, her husband may own a half-interest. Here are some other examples:

Several community property states offer an advantageous way of holding title to community property that avoids probate at the death of the first spouse. It's called "community property with right of survivorship." If a couple holds title to property -- a house, for example -- that way, when one spouse dies the house will automatically belong to the survivor, without any probate court proceedings."

Size of your funeral...

No matter how rich you become, how famous or powerful, when you die the size of your funeral will still pretty much depend on the weather.

- Micheal Pritchard

Different Types of Wills

From the www.findlaw.com website comes a list of different types of wills:

"Statutory Wills A statutory will is a printed, fill-in-the-blanks, check-the-boxes form. It is authorized by state law in four states: California, Maine, Michigan and Wisconsin. In theory, statutory wills are an excellent idea -- inexpensive, easy to complete and thoroughly reliable. Unfortunately, in practice, statutory wills aren't useful for most people. The choices they provide are quite limited, and any attempts to alter one risks negating the entire will. Because of its limitations, the movement to adopt statutory wills has stalled. No state has adopted a fill-in-the-blanks will form since the mid-1980s.

Stationery Store Wills Many office supply stores offer a one- or two-page printed will form, with blank spaces, sometimes quite large, for you to complete. They contain no instructions for filling them in and no information regarding a host of reasonable concerns you might want to know about, ranging from leaving shared gifts to witnessing requirements.

Video Wills No state allows videotaped or filmed wills -- even though some people think it would be a wonderfully convenient way to get their will-making over with.

Handwritten Wills In a minority of states, handwritten wills, called "holographic" wills, are valid. They must be written, dated and signed entirely in the handwriting of the person making the will, but needn't be witnessed.

Because there are no witnesses, these wills are considered less reliable. It may be difficult to prove to the probate court's satisfaction that the document is actually in the deceased person's handwriting, and was intended to serve as his will. Cross-outs may invalidate the entire will.

Oral Wills An oral will is valid only in a few states, under special circumstances, such as the danger of imminent death.

Joint Wills A joint will is one document made by two people -- usually, a married couple -- to serve as the will of both. Each leaves everything to the other. Then the will goes on to specify what happens to the property when the second person dies. It prevents the surviving person from changing her mind regarding what should happen to her property after the first person dies.

Joint wills can tie up property for years, pending the second death, and the survivor cannot revise the will to reflect changing circumstances. A couple can use two separate wills to accomplish most of the sensible goals of a joint will, without its drawbacks."

wills - some legal terms

just some legal terms that I was not familiar with that are commonplace in wills:

testator:  the person making the will

devisees: the people who will recieve specific property

codicil: changes made to a will by amendment

intestate: when there is no valid will, the person is said to have died "intestate"

probate: probate is the legal process that takes place after someone dies - probate includes proving in court that the dead person's will is valid, identifying and inventorying the deceased person's property, having all property appraised, paying any taxes or debts owing, distributing the property as the will directs.

Keeping your will safe

Just like any other important document, you should always store your will in a safe place - in a fire proof safe in your house, for example, or a safe deposit box - it should be stored where it can be protected

Upon your death, the will should be easily available to the executor of your estate - arrangements should be made before your death in this regard.  Also, a letter of instruction shold also be prepared that holds instructions on how to access insurance policies, bank accounts, etc.  Instructions should also be prepared that advise the executor what plans are to be made for funeral and organ donation.

A will doesn't have to be filed with a government agency or court after it is written.

Changing, Revoking and Updating Wills

from Washington State Bar Association:

"Changing or Revoking a Will

A will is effective only at death and may be changed or revoked at any time before death. A will should be revised to reflect any changes in circumstances, personal choices or resources. Changes are often made by a simple document called a codicil (a supplement to a will), or by redrafting the will. An attorney should be consulted when making changes to ensure that changes are legal and properly made.

Updating a Will

A will should be reviewed and updated as conditions and circumstances change. For example, changes may be necessary when:

• The family changes as a result of a birth, adoption, marriage, divorce or death;
• Substantial changes occur in the amount or kind of property owned;
• Tax laws change;
• Residence changes from one state to another;
• The designated executor, guardian or trustee can no longer serve; or
• You decide—for any reason—to change the distribution of your estate."

How long does a will last?

from the Washington State Bar Association:

Longevity of a Will

A will is valid until legally revoked or changed, and becomes final or effective upon its maker's death. In the event of a divorce, a will automatically excludes the former spouse unless it expressly states otherwise. (Complications could result, however, if no property settlement agreement of the divorce exists.) Periodic reviews are important to make sure the will conforms with changing laws—as well as the will-maker's intentions.