1) List the basic documents used in estate planning. --Wills -Side instruction letters
-Durable powers of attorney for property
-Durable powers of attorney for health care
-Living wills or advanced medical directives
-Do Not Resuscitate orders
2) What problems arise for someone who dies intestate?
“Dying intestate” means dying without a valid will. When somebody dies intestate, the laws of the state of their domicile control the distribution of their personal property. Real property located in another state is distributed based on the laws of that state. The Estate is represented by an administrator that is appointed by the probate court. This process can be costly and might not distribute property in the way the decedent would have wished. 3) List the common provisions in a valid will.
-The introductory clause that names the testator and their residence. -It also names the state of residence where the will is executed and identifies the next of kin. -The declaration clause that states that this is the last will and testament of the testator. -The will should be dated and revoke all previous wills.
-An appointment of executor clause that identifies the executor and any successor executor.
4) What is a living will?
A living will is a document that details an individual’s last wishes regarding sustainment of life. It is also called an Advanced Medical Directive. 5) Why should a living will be prepared in advance?
A living will should be prepared in advance because later on the testator may not be of sound mind and not be able to legally form such contracts and to avoid the delay caused by sending such choices through court.
6) What is a power of attorney?
A power of attorney is a legal document giving an agent the right to act on behalf of a principal.
7) Identify and discuss the parties to a power of attorney.
-The agent is the person who receives the power to act on behalf of the Principal. -The principal is the person who gives the power to act on their behalf to the agent.
8) What is a springing durable power of attorney?
A springing durable power of attorney does not become active until a certain defined point in time or event (the trigger). Often, the power will spring upon disability or incapacity.
9) What is a durable power of attorney?
A durable power of attorney is the power of attorney that remains intact through the incapacity or disability of the principal yet does not remain after the principal’s death. 10) What is a springing durable power of attorney?
A springing durable power of attorney becomes active beginning when some specific event occurs, such as an arising incapacity or disability.
11) What is a side instruction letter?
A side instruction letter or personal instruction letter outlines the intended fate of the testator’s tangible possessions, the decedent’s body, and funeral arrangements. It is an entity separate from the will.
12) List and define the three major types of property.
- Real property consists of land and buildings.
- Tangible property is property that is not real estate and is tangible rather than abstract. Some examples of tangible property are household goods and automobiles. - Intangible property consists of property that generally can’t be touched like investment securities and copyrights.
13) List at least three types of property ownership.
- Tenancy in common (undivided interest in property)
- Joint tenancy (undivided interest in property that includes a right of survivorship, generally) - Life estates (interest in property that ends at the death of the owner, it provides right to income and/or use)
14) Define fee simple property ownership.
Fee simple is total individual ownership of property with all rights associated ownership such as the right to use, sell or gift the property. 15) Discuss what happens...