Attorneys Permitted as Executor |
Attorneys Permitted as Executor
Many people wishing to have a new Will prepared are uncertain as to who to select as Executor. The Rules of Professional Conduct permit an attorney to serve as Executor of an estate if you have no family member able to serve. The following are 5 reasons why people have selected attorneys as Executors:
1. Attorneys who are not family members are not influenced by past family concerns or squabbles. Attorneys often have the staff and resources to liquidate assets, do paperwork, pay creditors and distribute assets to beneficiaries.
2. There may be no family members in New Jersey to go to Surrogate's office and qualify as Executor.
3. Family members not able to open and balance check-book and financial records due to age or inexperience.
4. No one in family wants to be executor.
5. Children fight amongst each other - Attorneys are independent.
The last thing you want is your heirs arguing over their inheritances after you are gone. So, to avoid hard feelings and even legal disputes, here are few helpful tips to consider:
Make a valid Will. A Will is a legal record to tell your loved ones how you want your property divided. Leaving a valid Will is the best way to be clear about your desires and wishes. Without a Will, the state in which you live Will distribute your assets for you according to law.
Don't leave verbal instructions to your heirs. Oral instructions don't have any legal effect. For example, don't leave your business in your Will to the oldest child, but then verbally ask that child to share the proceeds with your other children after your death. Your oldest child doesn't have any legal obligations to do so, and you could - unintentionally - create hard feelings among your children.
Keep your Will updated. Your Will needs to be updated as major changes take place in your life such as marriage, divorce, birth of a grandchild, buying new property or selling existing property. An outdated Will can be just as damaging to your family as no Will at all. When planning the distribution of your estate, it is best to consult your legal advisor to make sure your wishes are carried out.
What to do if you select your attorney as Executor
Fill out Letters of Instruction Executor Regarding Funeral Arrangements, Business Transfer and Post-Death Procedures. For your confidential information, put in a sealed envelope, write on the outside “Do not open unless in hospital or deceased.” Give to your attorney and the other executor.
How to Prepare Letters of Instruction To Family and Executor Regarding Funeral Arrangements, Business Transfer and Post-Death Procedures
Compiled by Kenneth A. Vercammen, Esq. from various sources
We highly recommend all adults have a current Will, a Power of Attorney and a Living Will. In addition, individuals are encouraged to plan ahead and write messages to their family and executor detailing their specific desires regarding funeral and burial. Written instructions to your family and executor containing information and guidance will minimize uncertainty, confusion, and possible oversights following your death. The information you furnish should ease the settlement of your estate and provide for an orderly winding-up of your affairs. You need to share what you know with those who ( often suddenly and without warning) must step into your shoes and carry out your final needs. More info at http://www.njlaws.com/letters_of_instruction.htm
What Should Your Letters of Instructions Cover ?
Letter to Your Family & Executor
Typically, this letter would be written to the person who is your executor. You may also want to address the letter to your children, particularly if they are the primary beneficiaries of your estate or they will be called upon to assist your spouse directly in the settlement of your estate and business affairs. The letter of instruction is prepared by you and is meant to provide assistance and guidance to your family regarding items not covered in your will. This letter will not change your Will. If you wish changes in your Will, speak to your attorney. Some possible points to cover in the family letter are :
1. Funeral and burial arrangements: Where, by whom, what kind, and at what cost? Many adults now go to their local funeral home and pre-select arrangements. Some even prepay.
2. Anatomical gifts: Identify the nature and location of any anatomical gift declarations you have made.
3. Memorials and contributions: Identify what organizations or institutions might be appropriate recipients of memorials or charitable donations made in your memory.
4. Preparation of obituary: Should your obituary be prepared in advance and be updated periodically? To which newspaper should it be sent?
5. Notifications of friends, relatives, business associates, and colleagues in charitable or civic groups. Identify those persons to be contracted upon your death, noting any particular requests or messages to be given, and listing their current addresses and phone numbers.
6. Location of your safe-deposit box and its key.
7. Location of your Will and estate planning documents: Include any trusts, buy sell agreements, or extraneous writings incorporated in your will.
8. Medical and hospital coverages and location of the policies.
9. Social Security and Veterans Administration benefits: Identify current or potential benefits.
10. Life insurance: Indicate where policies are located and what steps should be taken to collect policy proceeds.
11. Location and explanation of title documents and other records relating to your assets. Include deeds, stocks, bonds, bank accounts and deposits, retirement plans, and vehicle titles.
12. Identify obligations involving periodic payments, such as your home mortgage, car loans, and other debts, including amount and to whom payable.
13. Identify your attorney and professional advisers (including your accountant, broker, trust officer, and insurance agent) who you currently use or recommend.
14. Key employees and business friends to keep business operating until sale. The value of an ongoing business is much greater than a closed one!
16. Passwords for email accounts, plus online social media, such as Facebook.
You should review and update your letters of instruction periodically to be certain they are complete and current. In most cases, you should personally discuss the contents of the letters with the persons to whom they are addressed, especially so with your spouse and executor to amplify or clarify the instructions given and answer any questions. In all events, it is advisable to give the letters of instructions once written to the addressees so that they will be aware that the letters call for certain actions promptly after your death. A letter setting forth the above items will be especially helpful if your executor is someone who doesn't live with you and doesn't know the location of all your personal papers and assets. For those individuals with a business, a shareholder's agreement or buy-sell agreement is recommended.
Conclusion
While the preceding list contains possible topics to be covered in your letters to your family and executor, the list is by no means exhaustive. A number of these items may not be applicable in your situation, and probably there are many others that are applicable. The important thing is to spend some time now considering what you should tell those most closely associated with you to facilitate their handling of your affairs upon your death, and then write those matters down as soon as possible.
Each of us has our own style of letter writing, especially when we are writing our loved ones or close associates. In such circumstances a special and personal form of communication is needed. We are mindful that each such letter should be unique and that there is no best way to compose the letter. For estate planning, speak with an experienced attorney.
For more information go to : http://www.njlaws.com/attorney_permitted_as_executor.html?id=22&a=
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Wednesday, September 27, 2017
Attorneys Permitted as Executor
