What is a Release & Refunding Bond in Probate

 What is a Release & Refunding Bond in Probate

         Under New Jersey law it is the duty of the fiduciary [Executor or Administrator] to make arrangements to pay bills and other estate expenses and carry out instructions under the Will. NJSA 3B:23-24 provides the fiduciary shall take a Release and Refunding Bond from each beneficiary.

 

         The Attorney will prepare Release and Refunding Bonds and accountant or executor prepare an informal estate accounting. If a beni has any questions regarding the accounting, please call the executor directly since they have the bank records. The law office does not have bank records.

          Every beneficiary will need to sign their Release and Refunding Bond. If any beneficiary does not sign their release and refunding bond, then the estate funds cannot be distributed to anyone until approved by the Superior Court. An Accounting and Court complaint for approval must be filed under Rule 4:87-1. This would take many months. 

      We request all beneficiaries to immediately make arrangements to sign the Release and Refunding Bond in front of a notary, and return it to the office so all beneficiaries can receive their funds. Please also note under Federal Law and New Jersey law each beneficiary must certify they do not owe child support.   NJ Law makes child support a lien and to be paid by the estate by the Executor. The notary must sign on last page at end to be valid.

 

         The Release & Refunding Bond must be filed with the County Surrogate and a fee paid. 

 

Changing Your Will

 Changing Your Will 

There are very strict requirements on creating wills in most states. As you might expect, there are also very strict rules governing changes made to wills. It is important to understand that if you make a change of any kind to a will, even one tiny pen mark, you must comply with the requirements of your state's laws. If you do not and simply make changes, you might be invalidating the entire will.

Legalease members can have a new Will prepared for Free

Many people fail to grasp this principle, and believe that if you make a change to one minor paragraph or word, then the rest of the will remains valid. You should understand that the body of case law in most states will compel a different result. In fact, your will might be declared invalid. If you have not made another, your property could end up in probate court being distributed according to the laws of intestacy.

This is drastic and can produce drastic consequences. For example, consider this situation: You have 5 children and a spouse. However, one child is having certain problems and has already completed four (4) credit card applications sent to you, forged your name and ran up debts of $29,000. When you make your will, naturally you take steps considering how to make sure this child is not given a substantial amount of your estate, and instead, you take $20,000 and set up a trust to take care of the necessities for this child.

Then you give your spouse and your remaining 4 children equal shares of your estate. Later, you change the specific gift of your favorite chair from your nephew to your niece, by crossing out the nephew's name and writing in the niece's name. All seems well. Right? Wrong.

Were you to die, here is what could very realistically happen: Your will, because of the minor name change on a minor gift, could be declared invalid. This means that you die with no will, and as such, your estate could pass according to the laws of intestacy. These laws vary by state, but most are consistent in the manner in which they treat your immediate blood relatives, usually equally.

Thus, a possible outcome might be that each of the five children would receive equal shares of your estate. No child would be excluded. Thus, the outcome you did not want, your troubled child having access to your property, except as provided specifically in your trust, now occurs. This child ends up getting not only the special trust assets, but also the same property as his brothers and sisters. In effect, this child, who was not supposed to inherit much, ends up with more than the other children. Not only that, but since you have died, you can no longer amend your trust to fix the problem.

Even worse, having an equal share, the same as others, gives one an immense amount of rights under the law. Let's say your intent, in the same situation, was to allow your spouse to live in the house for their life, then the four other children would either keep the house or sell it and keep the proceeds. Now, because of the alteration in the will, the will is invalid and the fifth child has a property interest equal to the others in the house in which your spouse is currently living. This means that he/she can go get a lawyer and possibly force the sale of the house immediately, and the eviction of your spouse upon the sale. Or, he/she could force the spouse to actually pay rent for living in her own house.

These incredible results are not fair, and are not anywhere near your intent, all because of some chair you wanted to give to your niece instead of your nephew. But, this one little change can do all of this damage. The courts are full of these kind of legal battles. These are very common.

Even worse, a little advice and a properly changed will would have ensured that your wishes would have been completely carried out and you would have avoided all of these drastic outcomes. This example illustrates the necessity of having an attorney prepare your will, and to make any changes to your will. You must know the laws of your state before you act. To speak to an attorney to create or change your will, contact member services.

When Can You Make Changes to Your Will?

You can change your will as many times as you like before your death. However, remember that you must be competent and not acting under any duress to prepare a valid will. So too, you must not be incompetent or acting under any fraud or duress in making any changes to your will. To make sure your changes did not invalidate your will, you may want to contact member services and be paired with an attorney.

Legalease members can have a new Will prepared for Free

source https://legalcorner.legaleaseplan.com/content/changing-your-will

 

Other Options for Distributing your Estate after Death 

Joint Tenancy: Joint Tenancy is a method of owning property which enables a person to hold property with one or more other persons in a manner in which the property will be owned by the survivor(s) of the Joint Tenants. Assume a husband and wife hold the title to their house as Joint Tenants [assuming no other state title statutes may apply for this example]. The Joint Tenancy manner of holding title essentially means that on the death of the first person, the house would then be owned outright by the other, if they were to be living at the death of the first.

While this seems to be the easiest manner of passing title, several problems commonly arise. First, there is no provision for the disposition of the property if both die at the same time. Many people with normal size estates assume that since they hold the property in Joint Tenancy, they do not need a will. Obviously, they are overlooking completely the possibility that both spouses may die at the same time.

Another common mistake is to fail to understand that Joint Tenancy gives no rights to anyone, in most cases, other than the other Joint Owners. That means that if you purchase a house with your sister, for example, before you get married and have children, your children or your spouse will, under most state laws, not have any interest in the house.

Assume your sister marries a person who never holds a job and basically may not have all the financial management skills which you deem necessary. Should you die suddenly, your sister would own the property outright, without even a single dollar being passed to your spouse or your children. Of course, there are exceptions to this situation and you should consult a lawyer to determine exactly how to handle it should it happen to you. However, this model does offer an example of what to consider in trying to prevent these problems from ever arising.

Another problem is if the property held in Joint Tenancy has appreciated substantially since it was purchased, several tax principles will be involved. Check with an attorney or an accountant as to whether there is a need to consider the basis of this property and how such a distribution would affect the cost basis of the property for tax purposes.

In short, Joint Tenancy may be a great way to transfer property, since the disposition on the death of one of the Joint Tenants is passed without any probate court. However, there are significant disadvantages, which may make other means of property transfer better vehicles for ensuring that your own relatives receive your estate.

Life Insurance or Pensions: Typically, subject to both state and federal laws, life insurance proceeds are paid directly to the named beneficiary(ies) in the policy. Similarly, pension benefits can be paid to named beneficiaries. However, there are many instances where each, or both, of these assets may have a community property aspect to them, and naming a person other than one's spouse might not be effective under every state law. In most cases, this is a complicated area requiring the assistance of an attorney.

Trusts: There are many kinds of trusts, and many are extremely complicated and expensive. Perhaps some of the most discussed legal documents in the past few years are trusts. One of the most common is a "living trust," but there are trusts which serve a variety of purposes. Some trusts may aid in estate or tax planning, others may be for the benefit and care of children, and still others can simply be created to avoid probate. Even when you create a will, in most states, you are going to end up in a court probate proceeding of some type. In many cases, a trust may help you completely avoid the costs and delays inherent in the probate court.

However, once again, this is an area of strict statutory rules and in order to have peace of mind that you have prepared your trust properly, you must understand the applicable rules of your state and how they operate to affect your trust. This is an area which is best left to an attorney. Contact member services and be paired with a lawyer that can help you create the trusts you need. Source https://legalcorner.legaleaseplan.com/content/other-options-distributing-your-estate-after-death

The Major Elements in Life Planning

The Major Elements in Life Planning

Several elements are of paramount concern in thinking about one's future. These elements include:

How you wish your body to be treated if you suffer either permanent incapacitation or death

Whether the persons related to you can access your financial information

Services and arrangements if you were to suffer death

Treatment for Your Body If You Became Incapacitated

If you became incapacitated tomorrow, how would you want the hospital or the long-term care professionals to treat your body? This is not really an issue if you are conscious or temporarily paralyzed, but is a significant issue if you are unconscious or in a coma from, for example, a family outing at the river, where you and your three year old son were canoeing, and the canoe tipped throwing you into the water and hitting your head on a rock.

Do you want life-support to continue? Do you want daily hydration to continue or to be withheld at some point? What about certain professionals who maintain their beliefs that certain treatments may help you recover, when they might seem ridiculous to your family? It might be worth it to consider these issues and to specify these in writing. One way to do so is in the form of a Living Will and/or Durable Power of Attorney for Healthcare.

Treatment of Your Body If You Suffered Death

If you were to suffer death unexpectedly are you prepared? More importantly have you taken the steps you can to keep the trouble, hassle and huge expense of time and money to a minimum for your family? Once again, the Living Will analysis might assist in this area.

Services, Funeral Arrangements and Other Details

Again to assist your family, you should give some thought to the issues of funeral arrangements, services, burial and other related issues. Many spouses do not, when pressured to answer, know how their own spouse wishes to be buried, where they wish to be buried, or how much of a service would be desired and other related issues.

For any help drafting a Living Will and or Durable Power of Attorney for Healthcare, contact member services. We’re here to help. We’ll match you to the right attorney to help you prevent major legal issues later. source https://legalcorner.legaleaseplan.com/content/major-elements-life-planning-1

Sample Declaration Regarding Final Arrangements for Legalease members

 Sample Declaration Regarding Final Arrangements for Legalease members

Legal Note: The Documents here are provided for your information and that of your immediate family only. You are not permitted to copy any document provided to you. Each of these Documents provided are intended as general assistance in simple legal matters only. No document is intended to be used for any item, transaction, or other matter, where the total value of the item, transaction or matter is worth more than $ 5,000.00. You are not authorized to use any document for any transaction which is in excess of $ 5,000.00 in value or is not a simple matter. As a guideline to the meaning of simple, consider the following: if you can complete the document without any questions, it is likely a simple matter. However, if you need to ask any questions, you should consult with your Plan attorney. Do not speculate about completion of the blanks in this matter.

The information provided in the documents, and the instructions provided with each document are not intended to constitute legal advice. These documents are intended to assist consumers in protecting themselves in certain simple transactions, without incurring expensive attorneys fees. If you need legal advice, Plan Attorneys will be happy to provide a free legal consultation, at no cost, to you as a Plan member. Understand that if you contact a Plan Attorney, he/she may not advise you as to how to complete your documents. They may only be retained to prepare documents for you which they deem to be proper in your situation.

Certain documents can be completed with either a pen or a typewriter, unless indicated otherwise in the specific instructions. You should not make changes or alterations to any documents, once you have completed the document. You must complete a new document fully, even if you wish to make any changes, even a small change. If you make any changes to a document, you cannot be sure that the change conforms to legal requirements. For example, changes to a will, in some circumstances, may void the entire will, even if you intended to make the changes. Thus, it is a safer practice to make a new document, if you intend to make any changes.

If there are blanks which are not used or which contain no information, place an X, or a line through the blank. This ensures that no person can make unauthorized modifications to a document, by simply completing the blanks, and changing the entire crux of the document.

Certain documents may require a notary. Notaries are certified by each state, and can only operate in the states in which they are licensed to operate. An invalid notary may invalidate your document. Notaries serve the purpose of verifying that the signature of the person signing the document, is in fact, the person claiming to have signed the document. Certain institutions require a notary, even when state law does not. Be sure to check with the parties with whom you are dealing to see if they will require a notary. Banks often require notaries.

If you believe that you must record a document, you should consult with a Plan Attorney. No document provided here is intended for recording, and any such document must be prepared by a Plan Attorney. We have not included certain documents, despite repeated requests, because these documents require the skill and expertise of an attorney. These include trusts, deeds, Mortgages, Escrow Agreements and other documents. Always consult a Plan Attorney before drafting one of these documents on your own.

DECLARATION REGARDING FINAL ARRANGEMENTS OF _______________________________
(Name)

I wish to describe my desires and to facilitate the making of arrangements at the time of my death. _____________________________________________________________ _____________________________________________________________ _____________________________________________________________ _____________________________________________________________ _____________________________________________________________ _____________________________________________________________

1. NOTIFICATION. _____________________________________________________________ _____________________________________________________________ _____________________________________________________________ _____________________________________________________________ _____________________________________________________________ _____________________________________________________________ _____________________________________________________________ _____________________________________________________________ _____________________________________________________________ _____________________________________________________________ _____________________________________________________________ _____________________________________________________________

2.FUNERAL HOME/DIRECTOR. I desire that ______________________________________________________,of ______________________________________________________, _____________________________________________________________________________ ________________________________________________________________________,be consulted in making the arrangements requested in this document, and modifying these arrangements as may be appropriate at the time of my death.

Arrangements have been made with ___________________________________________________, of ___________________________________________________, ______________________________________________________________________________ _____________________,______________________________________________________and a copy of those arrangements is attached to this document.

3. DONATIONS/ANATOMICAL GIFTS. I desire that any of my organs which may be useful to others be taken for anatomical gifts, if possible. I have completed the appropriate form to make these gifts. A copy of the donation form is located __________________________________________________________________ __________________________________________________________________

If my organ donation is not possible, then I desire that my body be donated to ___________________________________________________________, ________________________________________________________________ ________________________________________________________________

If for any reason it is impractical to donate my body or my body is rejected for medical science studies, I desire that my body be disposed of as indicated below.

4. TREATMENT OF BODY. I desire that my body be embalmed and displayed at my service, and then cremated. I would like my remains to be buried in _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________

5. POSTMORTEM EXAMINATION. I do authorize a postmortem examination (autopsy). I desire that my family or other appropriate person(s) request that no autopsy be performed so that my body may be donated to medical science. However, I understand that in some instances an autopsy will be required by law.

6. SERVICES. I desire that the following service(s) be held:

1. A funeral service at

   ________________________________________________, ________________________________________________ ______________________________________________for anyone desiring to attend. The body shall be present.

2. A memorial service at ________________________________________________,

   ________________________________________________ _____________________________________________for anyone desiring to attend. The body shall be present.

c. A wake at _________________________________________, _________________________________________________ _______________________________________________for anyone desiring to attend.

d. A visitation at_____________________________________, ________________________________________________ ______________________________________________for anyone desiring to attend. The body shall be present.

I desire the following arrangements be made: ___________________________________________________ ___________________________________________________ ___________________________________________________ ___________________________________________________ ___________________________________________________ ___________________________________________________ ___________________________________________________ ___________________________________________________ ___________________________________________________ ___________________________________________________ ___________________________________________________ ___________________________________________________

7. MUSIC. I would like the following musical selections to be performed at my ______________: -__________________________

-__________________________ -__________________________ -__________________________

I desire that ______________________________________be asked to _____________________at my__________________. I also wish that ________________________________________________be asked to _____________________at my______________________.

I would like the following musical selections to be performed at my__________________________: -__________________________

-__________________________ -__________________________ -__________________________

I desire that _________________________________________be asked to ____________________at my_______________________. I also wish that ___________________________________________________be asked to

____________________at my_______________________.

________________________________________________________
________________________________________________________
________________________________________________________
________________________________________________________
________________________________________________________
________________________________________________________
________________________________________________________
________________________________________________________
________________________________________________________
________________________________________________________

8. READINGS. I desire that_____________________________be asked to read at my ___________________. I also wish that_______________________________________be asked to read at my____________________________. I would like the following to be read:

-________________________________________________________

I desire that ________________________________be asked to read
at my_________________. I also wish that _________________________________________be asked to read at my____________________________. I would like the following to be read:

-________________________________________________________

9. SPEAKERS. I would like the following person(s) to speak at my______________________ if they would feel comfortable doing so:

-______________________________________________ -______________________________________________ -______________________________________________

-______________________________________________ -______________________________________________

I would like the following person(s) to speak at my______________if they would feel comfortable doing so:

-______________________________________________ -______________________________________________ -______________________________________________ -______________________________________________ -______________________________________________

I would like the following person(s) to speak at my____________if they would feel comfortable doing so:

-______________________________________________ -______________________________________________ -______________________________________________

10. FLOWERS/MEMORIAL. I request that flowers be used at the discretion of my family and friends.

I request that a memorial fund be established with donations to be made to the following organizations:

-________________________________________________ -________________________________________________ -________________________________________________ -________________________________________________ -________________________________________________

11. CASKET/CONTAINER. I desire that my remains be placed ________________________________________________________ ________________________________________________________ ________________________________________________________

12. PALLBEARERS. I would like the following persons to serve as pallbearers: -__________________________________________________

If any of the persons named are unable to serve for any reason, I would like the following persons to serve as alternate pallbearers:

-__________________________________________________

13. OTHER WISHES. I also desire that there be no visiting hours and no display of my body. I do want a marker. I request the following information be inscribed on my marker: ________________________________________________________ ________________________________________________________ ________________________________________________________I would like an obituary to be published in: -__________________________________________________

Biographical information is attached to this declaration.

________________________________________________________
________________________________________________________
________________________________________________________
________________________________________________________

I have given careful thought and consideration to these instructions. I understand that this declaration is not legally binding, and that the ultimate decision will be made by my family and other appropriate person(s) based on the circumstances at the time of my death. I hope that my desires will be fulfilled, to the extent possible.

I have discussed these instructions with my family and all appropriate person(s). Dated this___________ day of___________, 20__.

                              ________________________________

Name:

Address: ________________________________ ________________________________ ________________________________

BIOGRAPHICAL INFORMATION

FULL NAME: ______________________________________________ PLACE OF BIRTH:_______________________,__________________ DATE OF BIRTH:_____________________
SOCIAL SECURITY NUMBER:__________________________

NAME OF SPOUSE:_________________________________________ DATE OF DEATH:___________________________

NAME OF FATHER:_________________________________________ DATE OF DEATH:___________________________

NAME OF MOTHER:_________________________________________ DATE OF DEATH:___________________________

OTHER SURVIVORS:

_____________________________________________________________
_____________________________________________________________
_____________________________________________________________

SCHOOLS ATTENDED:

_____________________________________________________________
_____________________________________________________________
_____________________________________________________________

ORGANIZATIONS:

_____________________________________________________________
_____________________________________________________________
_____________________________________________________________

MILITARY SERVICE:

_____________________________________________________________
_____________________________________________________________
_____________________________________________________________

PUBLIC OFFICES HELD:

_____________________________________________________________
_____________________________________________________________
_____________________________________________________________

ASSOCIATIONS:

_____________________________________________________________
_____________________________________________________________
_____________________________________________________________

OTHER INFORMATION:

_____________________________________________________________
_____________________________________________________________
_____________________________________________________________

This summary is not an official part of your document. It contains highlights of the important information that has been entered into the document.

SUMMARY

of

MEMORIAL SERVICES

DECLARANT __________________________________________________

FUNERAL HOME DIRECTOR __________________________________________________ __________________________________________________

DONATIONS/ANATOMICAL GIFTS Useful organs to be donated.

TREATMENT OF BODY Cremation.

AUTOPSY
Autopsy authorized.

MEMORIAL/FUNERAL SERVICES
The following services are to be held:

Funeral service. Memorial service. Wake.
Visitation.

FLOWERS/MEMORIAL
Use flowers at discretion of family. Memorial fund to be established.

PALLBEARERS

source https://legalcorner.legaleaseplan.com/content/sample-declaration-regarding-final-arrangements

Estate Planning for Legalease members NJ

  Estate Planning for Legalease members NJ 

Whether You Need a Living Trust or a Will is Not Such an Easy Question to Answer.

We’ve heard these adult words thrown around of what we should have, especially once children pop into the picture. But how many of us know their actual definitions, when to use them, and if we need all of them or just some? Below is meant to offer a simple explanation. Please consult your legal advisor for more information.

Let’s start with definitions.

A Will is a legal document that tells the state how you want your property/assets distributed upon your passing. It can also name a guardian for your child/children. Without a Will, these decisions are left to the state, and can cost your family members time, money and unnecessary stress. A Will is only active after your death. Think of it as the who, what and when…Who do you want getting your stuff, what are they getting, and when do you want them to have it?

A Living Will is very different from a Will. It communicates medical directions in the case that you are unable to express your own desires while still living. Other names that might be used for Living Will are “medical directive” or “advance healthcare directive.” 

A Trust is a legal relationship that transfers your assets while you are alive to a Trustee (second party), who then manages and distribute your assets according to your instructions to your selected beneficiaries. It is private and does not involve the state, thus, probate court is unnecessary. Once a Trust is written, it is active.

There are different kinds of trusts that can be setup by an individual. Some trusts are established for estate planning, or for tax planning, and some are for probate avoidance. Trusts are also a tool to ensure the Trustor’s assets are distributed to the people the Trustor desires (beneficiaries) but only when the beneficiary reaches a certain age, or a certain event happens in their lives. More information can be found around the components of trusts or samples of a trust by following this link HERE.

So, if both Wills and Trusts manage and distribute a person’s assets, what’s the difference between the two?

The biggest difference is that a Will distributes your assets only after you’re gone and through Probate Court. With Trusts, the Probate process is skipped, and your assets are managed and distributed while you are alive. A Will distributes everything in your estate, while a Trust only involves the specific property you transferred into the Trust.

When would setting up a Trust be more helpful than having a Will?

Whether you need a Will or a Trust depends upon several factors. Generally, those with estates (all of your assets) that are under $500,000 in total, will need to create a Will and that usually suffices.

Setting up a Trust can be more complex and expensive. However, it is private and does not involve public record, which appeals to many, and it allows you to get very specific, which is especially helpful to people with special circumstances.

One usually needs a trust when one has a substantial amount of assets and wants to either make sure the property is passed to their heirs in the most efficient manner, or with the least amount of taxes, or paying the lowest amount of probate fees in those states that set high probate fees. For example, California sets a percentage of the estate must be paid to those who administer the probate (distribute the assets for the deceased) and this fee can be very high if the deceased owned many assets.

In that case, or in the cases where the Trustor had a substantial amount of property, a Trust is often formed specifying the terms under which distributions are made, all with an eye toward avoiding high probate fees, in those states with high probate fees, or avoiding paying large estate tax amounts.

Trusts are also formed where there are children or adults who are named as beneficiaries under the trust, but might be in the Trustor’s opinion, too young or not able to manage the amount so money would be passed to them if the trustor died. A trust can be created that will pass on the assets at different stages of the beneficiaries’ lives.

Basically, when a person dies, they can no longer give away anything or talk to anyone about the assets the deceased owns. Probate is a legal proceeding whereby the judge oversees the process of distributing the deceased’s assets to make sure there is no fraud and the deceased written wishes are followed as best as the court can discern, since the deceased is no longer around to tell everyone how they want their estate distributed.

A Trust, often called a Living Trust, can help with the clear expression of the deceased assets, although they are not deceased when the Trust is created. Once a Trust is created, the Trust is an entity that “keeps on living” beyond the death of the Trustor [deceased]. Creating a Living Trust means assets transferred into and thus, owned by your trust, will bypass probate and flow to those you designated at your beneficiaries in the trust documents. A trust lets the Trustor have control over their assets long after they pass away.

Here are a couple of examples of how a trust can provide this control and protect one’s assets after their death:

Example 1: You and your significant other have two children, currently ages 5 and 2. You also have an investment account worth $2.5 million. You could put the account in your Living Trust so after you pass, you could specify the account would first go to your significant other and then to your kids if your other is no longer living. Because the children are young and would not know how to properly manage the money you passed onto them, maybe you want to give them each half of their share when they turn 25 and the rest at age 35 (or any age you specify). You might also give the person/people (called Trustees) responsible for taking care of your Living Trust some ability to make additional gifts of their share early in the event one child wanted to go to college, or one child became disabled.

Example 2: Assume the same example above but you and your spouse also have older children from previous marriages. Depending on your wishes and the dynamic of your family, you may not wish to give your spouse full control over your assets when you pass, because you fear your spouse may exclude your children from getting anything and favor their children. Here, a Living Trust could provide options for you to ensure all your children are taken care of.  

Trust planning can also reduce estate tax. Trust planning for estate purposes is complicated and may involve both a Will and Trust as well as other legal documents. You should consult an attorney for the specifics related to what actions you should take to protect yourself.

Simply put, most people need a will, but not everyone needs a trust. This is a general discussion about some complicated matters. It is for your convenience, but it is not intended to supply legal advice in any capacity. Always have an attorney review your particular situation before making any legal moves.

Source https://legalcorner.legaleaseplan.com/content/importance-estate-planning