Fraternity-Testvériség, 2002 (80. évfolyam, 1-4. szám)
2002-07-01 / 3. szám
FRATERNITY Your Last Will, Life Insurance and Joint Tenancy By Leslie L. Megyeri Attomey-at-Law Page 13 Do you need a Willi Many people believe that if we die without making a Will, our assets and personal belongings will automatically go to our spouse, children or immediate relatives. However, this is only partly true. They may get less than we hoped for because of the laws governing our dying without a Will. The reasons for making a Will are that a most difficult time is made easier for loved ones, a Will prevents bitter family battles, it assists the legal process, it specifies who gets our assets, it protects the family home, and it minimizes legal costs. What is a Willi A Will is a document (written in a letter format) that directs how and to whom our property shall be given after our death. In addition, our Will should name a person who we want to distribute our assets after our death. What are the legal requirements for a Willi A Will must meet the requirements of the state law where we live. Generally, our Will should be typed, signed and witnessed by at least two persons before a notary public. How to change a Willi Only you can change your own Will. The best way to change it is to destroy the original and make a new one, following the same procedure as outlined above. Why should you want to change your Willi Events such as death of an intended beneficiary, divorce, and a new property purchase are some of the most likely reasons. What should go into your Will? 1. Naming your beneficiaries. We have to decide how we want our property divided when we name the beneficiaries. We can make specific grants to a particular person. 2. Choosing an executor. This choice is an important one. The executor should be trustworthy, willing, and capable of handling finances and property. Our executor appointed by the court will be responsible for collecting and safeguarding our property, filing property inventories in court, giving notice to creditors, paying all our debts, preparing and filing tax returns, filing an accounting with the court and distributing our assets to our beneficiaries. What other ways is property passed at death1 1. Life insurance. When we purchased our life insurance from HRFA, normally we named a beneficiary. This is the person who will receive the proceeds of our policy at the time of our death. This is why it is important to name the beneficiary and make sure that the beneficiary is alive during the term of the policy. A Will cannot change the beneficiary we name in our HRFA policy because the insurance policy is a contract between us and HRFA in which HRFA promises to pay the person named in the policy the face amount on our death. Taxes are not paid on the money received. 2. Ownership by joint tenancy. Almost all kinds of property may be held in joint tenancy “with right of survivorship.” On the death of one of the joint owners, the other owner takes title to the deceased’s share automatically. It does not pass by Will. The law requires this kind of ownership to be created clearly and explicitly. If there is any vagueness, the property will pass to the heirs, not to the co-tenant, at the time of our death. How should you organize your file1 In our file, we should keep the following documents: our Will, marriage certificate, divorce decree, birth certificates, vehicle registration, vehicle title, insurance policies, investments papers, burial plot information medical and dental records, real estate deeds, and names of creditors. We should also disclose whether we want to be buried or cremated, the kind of memorial service we prefer, the location of burial plot, etc. It is important to take care of our affairs while we still can. Our Will must be updated periodically and the beneficiaries of the HRFA insurance policy must be kept current. Our file should be also updated so that there is not a treasure hunt after death for members of our family to locate investments and bank accounts.------ A Please call the HRFA if you have any questions about your insurance policy and whether or not you have properly named the beneficiaries. ■ V
