Four Legal Documents that You Should Not Live Without!

 

1.Will:

 

A Will ensures that your assets(all that you own) are distributed at your death according to your desires and wishes.  Here’s how a Will protects you, your children, your family, and your future:

            

You decide who the guardian(s) will be for your children rather than the court system.

 

You provide for your children’s needs after your death, according to your desires, not the court’s mandates.

 

You decide the percentages of the distributions of your assets that you want to go to your loved ones, not the courts

 

You decide the charities that you want to be remembered and blessed after your death-generally not considered if the court mandates the settlement of your estate(estate=what you own, your assets).

 

Estate and income tax consequences are eliminated or reduced to a minimum when competent legal counsel is used to prepare your estate documents.  It is your attorney’s responsibility to assist you to prepare your documents and give you guidance so that you eliminate or reduce to a minimum all estate and income tax consequences.

 

How long does it take to prepare and sign a will?

             1-2 hours                       To fill out an estate questionnaire

             1 hour                             To review the legal draft of the will with an attorney

             ½ hour                            To review, sign, and notarize the final document.

                          3 ½ hours                     

 

             How much does it cost to prepare and execute a will? 

The NNEC Planned giving and Trust Services Department provides this service to our conference members at no cost.  It is anticipated that the Lord’s work in Northern New England Conference will be remembered.

 

             I need a will, but I do not wish to use the services of the NNEC Planned Giving and Trust Services Department.  What options do I have?

The cost of a basic Will begins at $250.  A Will Package which includes Last Will & Testament, a Living Will, and the Durable Powers of Attorney(for both health care and financial affairs) ranges from $450 to $650 depending on the complexity of the Will.  Check the yellow pages for a competent estate planning attorney.

 

             How do I contact the NNEC Trust Services & Planned Giving Department to seek help in preparing my Last Will and Testament?  Call or write us at:

 

Northern New England Conference Trust Services and Planned Giving

91 Allen Avenue

Portland, ME 04103

207-797-3760 ext 14, or ask for Arnold Schnell, Ext 18.

Email: aschnell@nnec.org

Web Page:  http://www.nnec.org/trust_services

 

        2.Living Will:

 

A Living Will is a document that gives direction to your health care provider that if you have a terminal condition you do not wish your life to be prolonged by artificial means.  A Living Will also give s your preference regarding organ donation.  This document is highly recommended and costs very little to prepare and execute.

 

        3.Durable Power of Attorney for Health Care (DPAHC):

 

This legal document authorizes an agent or attorney-in-fact (usually a close family member, trusted friend, etc.) to make health care decisions on your behalf should you become incapacitated and unable to communicate your wishes regarding such care.  The essential element of a DPAHC is the appointment of someone you choose, and individual in whom you have the utmost confidence and who understands your wishes and values.

 

       4.Durable General Power of Attorney (DPA):

 

This legal document authorizes an agent or attorney-in-fact (usually a close family member, trusted friend, etc.) to make and carry out your financial and business wishes and decisions on your behalf should you become incapacitated.  The essential element of a DPA is the same as in the paragraph above, the appointment of someone in whom you have the utmost confidence and who understands your wishes and values.

 

 

                          Two Other Legal Documents to Consider:

        Revocable Living Trust (RLT):  Five reasons an RLT may serve your needs best:

Real Estate Holdings:  If you own real estate located in a state other than the state of your residence, you should consider a Revocable Living Trust.

Complex Investment Assets:  If you own significant amounts of complex investment assets, you should consider a Revocable Living Trust.

Privacy is very important in the administration of your estate, to you and your family.  The reason for this is a Will is considered a public record, a Trust is not.

Should you own a business and you become incapacitated(or die), a trustee(someone you choose or appoint in your Trust document to administer you estate assets) steps in to administer the provisions of your trust.  Normally there are no costly probate-related delays.

A Trust avoids the long delays and costly probate processes.

 

          Charitable Gift Annuity:  A charitable gift annuity is the purchase of a specified income for life:

A lump sum payment is initially made by the member, and thereafter the specified payment is made to the member for as long as he or she lives, regardless of how long, or how short. Annuities can be written for the lives of one person or of two persons.

Denominational annuities are "gift" annuities. This means that a portion of the initial payment used to fund the annuity will be retained by the charity upon the death of the individual.

A good portion of the income payments is tax-free and there is a tax deduction on the assets used to fund the annuity.

Annuities provide a carefree source of lifetime income and will ultimately benefit the Lord's work.

An annuity is a completed contract when written and cannot be changed or modified.