14 Apr
Estate Planning

POWER OF ATTORNEY

A power of attorney is a legal document by which you appoint a person to act as your agent.  The agent also called your attorney-in-fact. Once your attorney-in-fact acts within the scope of the authority spelled out in the power of attorney, his or her actions are legally binding on you, just as though you performed the acts yourself. The power of attorney can be general—authorizing the agent to act for you on every kind of subject or matter which may legally be handled through an agent.  However, certain powers must be named specifically. In Missouri, the power of attorney may be durable, meaning that it is still effective if you become incapacitated. So, for example, if you experience incapacity due to a stroke and had in place a durable power of attorney, your attorney-in-fact could use your funds to pay your bills and arrange for nursing services.  You also have the option to make the power of attorney effective only on incapacity.  This is called a “springing” power of attorney.  Healthcare Powers of Attorney are also permitted.  These documents nominate a person to either consent to determine which health care, medical...

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14 Apr
Estate Planning

REVOCABLE LIVING TRUST

The revocable living trust is an essential part of a comprehensive estate plan. A trust is simply an agreement that decides how to manage and distribute a person’s property during his or her lifetime and also upon death. A revocable living trust usually involves three set of parties: The settlor or grantor who provides the property to be placed in the trust; the trustee who holds title to the trust property and is responsible for managing the trust property according to the terms of the trust; and the beneficiaries who will receive the income and principal of the trust. For example, a married couple (the settlors) may create a family trust in which they place their property into the trust, serve as trustees during their lifetime and as beneficiaries receive the income or principal from the trust during their lifetimes. Often, the trust will name the settlors’ children or a charity as the beneficiaries after the death of the settlors This type of trust is “living” because it is created during the settlor’s lifetime and is “revocable” because the settlor reserves the right to change or revoke the trust during his or her lifetime Revocable...

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14 Apr
Estate Planning

WHAT IS A WILL?

A will is a legal document that states who receives your property when you die.  A will does not avoid the necessity of probate and must be “probated” within one year of the maker’s death to have legal effect. You may title your property in other ways so that probate is not necessary. In order to make a valid will, you must be at least 18 years old and be of a sound mind.  In Missouri, the will must be signed and the signature witnessed by two persons.  Best practice is to also have a notary acknowledge the signatures of the witnesses and the maker so that the will is self-proving. If you die without a will, the law decides who receives your property.  For this reason, a will is an important part of any estate plan.  For assistance with preparing your will, call Hannam Law today. The preceding article is for information purposes only and is not intended to be legal advice. For help with a guardianship or conservatorship, please consult a Missouri probate attorney such as Hannam Law.

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14 Apr
Probate

Refusal of Letters for Spouses and Probate

What if the estate has just enough for the decedent’s surviving spouse and minor children? In Missouri, if no will was admitted, the surviving spouse is entitled to receive:  Â˝ of the estate of an intestate decedent. If the decedent is survived by children and the spouse of the intestate is also a parent of those children, the spouse receives an additional $20,000. Exempt property such as the family Bible, books, clothing, household appliances, furniture, and one automobile. A support allowance for his or her maintenance (and that of the unmarried minor children) for a period of one year after the decedent’s death. The amount depends on the family’s previous standard of living. If a will was admitted to probate, but the will gives the surviving spouse less than the above, the spouse may elect to “take against the will.” Unless there was a contract such as a prenuptial or postnuptial agreement made before death, the decedent cannot completely disinherit a spouse under a will unless some form of contractual arrangement (e.g., prenuptial...

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14 Apr
Probate

Different Types of Probate

There are different types of probate proceedings in Missouri. First, probate may be supervised or unsupervised. In supervised administration the personal representative must seek court approval for many actions, and file annual settlements for the probate court to review and audit.  Independent administration is not monitored as closely and does not require annual settlements. For the court to grant independent administration, the will must designate this or all the distributees agree. Second, small estates are treated differently.  If the estate is valued less than $40,000, the full probate process is not required. The Court may grant a small estate certificate 30 days after the decedent’s death if a distributee (affiant) files an affidavit promising to use the decedent’s assets to pay debts and distribute the property according to law.  Unless the estate is valued at less than $15,000, the affiant must also publish notice to creditors. The preceding article is for information purposes only and is not intended to be legal advice. For help with a guardianship or conservatorship, please consult a Missouri probate attorney such as Hannam Law.

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14 Apr
Probate

What are the steps in probate?

The first step is to hire an attorney who practices probate law, such as Hannam Law, to represent you. In general, this attorney will guide you with the following steps: Asking the probate court to appoint a personal representative by Applying for Letters Testamentary if there is a will admitted or Applying for Letters of Administration if no will was admitted. Publishing notice to creditors. After the date of first publication, creditors have 6 months to submit their claims to the court and the personal representative. Conducting an inventory and appraising the decedent’s assets. Administering the estate and selling property if funds are needed to pay bills. Paying debts, properly submitted claims, taxes, and expenses. Preparing a settlement statement which shows income and disbursements of the estate; and Obtaining court approval for distribution Distributing and closing the estate. The preceding article is for information purposes only and...

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