While you may think that you've covered all your bases, it may be a good idea to consult with a professional on a full investment and insurance plan. And if it's been a while, you may want to revisit your plan. As you get older, your needs may change, such as figuring out if you need long-term care insurance and protecting your estate from a large tax bill or lengthy court processes. Professionals will also be up on changes in legislation and income or estate tax laws, which could impact your bequests.
The only legal requirements to be an agent are that the person is of sound mind and at least eighteen years of age. Your agent must be someone whom you trust. Your agent has the legal obligation to act in your best interest, to keep records of transactions, not to mix your property with his, and not to engage in any conflict of interest. However, an agent still has the potential to act unlawfully, so it is important to trust the person you select.
The term attorney-in-fact is used in many jurisdictions instead of the term agent.[2] That term should be distinguished from the term attorney-at-law. In the United States, an attorney-at-law is a solicitor who is also licensed to be an advocate in a particular jurisdiction. An attorney-in-fact may be a layperson and is authorized to act pursuant to the powers granted by a power of attorney but may not engage in acts that would constitute the unauthorized practice of law.
Let's focus on a revocable living trust for the purpose of estate transfer. Like a will, a trust will require you to transfer property after death to loved ones. It is called a living trust because it is created while the property owner, or trustor, is alive. It is revocable, as it may be changed during the life of the trustor. The trustor maintains ownership of the property held by the trust while the trustor is alive.
A Conservatorship is a legal relationship that a judge puts in place when an individual is deemed mentally, physically, or emotionally unable to care for themselves. If you become incapacitated in an accident or fall seriously ill, and aren’t able to care for yourself and make important decisions about your own life, a judge will appoint a conservator who can make these decisions for you.
• Review your account info. Regularly reviewing online bank/credit account transactions can help you spot suspicious activities or purchases. If you do stumble upon something fishy, be sure to report it to your bank or credit institution immediately. Most banks these days also have a way to report suspicious transactions directly in your list of transactions.
None of these situations are guaranteed to occur, but they are also not utterly improbable either. Once anticipated as a possible future situation, there are actions I can take such as changing beneficiary designations, providing that assets are protected for children or grandchildren who need that protection and to getting, or replacing, the value of my practice to my wife and children at my death with insurance. Some of these actions are documents, but some are not. In either event, for my clients in similar situations, using a basic will may save them some money today, but will not prompt them to anticipate the future. By not planning, they cannot avoid risking the loss of their assets during the administration of their estates.
Unless the power of attorney has been made irrevocable by its own terms or by some legal principle, the grantor may revoke the power of attorney by telling the attorney-in-fact it is revoked. However, if the principal does not inform third parties and it is reasonable for the third parties to rely upon the power of attorney being in force, the principal might still be bound by the acts of the agent, though the agent may also be liable for such unauthorized acts.
The acquisition of personal identifiers is made possible through serious breaches of privacy. For consumers, this is usually a result of them naively providing their personal information or login credentials to the identity thieves (e.g., in a phishing attack) but identity-related documents such as credit cards, bank statements, utility bills, checkbooks etc. may also be physically stolen from vehicles, homes, offices, and not the least letterboxes, or directly from victims by pickpockets and bag snatchers. Guardianship of personal identifiers by consumers is the most common intervention strategy recommended by the US Federal Trade Commission, Canadian Phone Busters and most sites that address identity theft. Such organizations offer recommendations on how individuals can prevent their information falling into the wrong hands.
There are several identify theft protection services that help people avoid and mitigate the effects of identity theft. Typically, such services provide information helping people to safeguard their personal information; monitor public records, as well as private records such as credit reports, to alert their clients of certain transactions and status changes; and provide assistance to victims to help them resolve problems associated with identity theft.
Identity theft can be partially mitigated by not identifying oneself unnecessarily (a form of information security control known as risk avoidance). This implies that organizations, IT systems and procedures should not demand excessive amounts of personal information or credentials for identification and authentication. Requiring, storing and processing personal identifiers (such as Social Security number, national identification number, driver's license number, credit card number, etc.) increases the risks of identity theft unless this valuable personal information is adequately secured at all times. Committing personal identifiers to memory is a sound practice that can reduce the risks of a would-be identity thief from obtaining these records. To help in remembering numbers such as social security numbers and credit card numbers, it is helpful to consider using mnemonic techniques or memory aids such as the mnemonic Major System.
One relatively new aspect of estate planning is digital assets. Things like email accounts, social media pages, blogs, websites, and media stored in the Cloud all qualify as digital assets, and you’ll need to decide who gets which assets after you pass away. Many of us now use Cloud services to store our family photos and videos instead of traditional photo albums and physical videos, so your family will want to be able to access these cherished memories.
The Department of Justice prosecutes cases of identity theft and fraud under a variety of federal statutes. In the fall of 1998, for example, Congress passed the Identity Theft and Assumption Deterrence Act. This legislation created a new offense of identity theft, which prohibits "knowingly transfer[ring] or us[ing], without lawful authority, a means of identification of another person with the intent to commit, or to aid or abet, any unlawful activity that constitutes a violation of Federal law, or that constitutes a felony under any applicable State or local law." 18 U.S.C. § 1028(a)(7). This offense, in most circumstances, carries a maximum term of 15 years' imprisonment, a fine, and criminal forfeiture of any personal property used or intended to be used to commit the offense.
Many states have forms for advance directives, allowing residents to state their wishes in as much or as little detail as they’d like. For example, it’s common to direct that “palliative care”—that is, care to decrease pain and suffering—always be administered, but that certain “extraordinary measures,” like cardiopulmonary resuscitation (CPR) not be used in certain circumstances.
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However, many accounts, such as bank savings, CD accounts, and individual brokerage accounts, are unnecessarily probated every day. If you hold these accounts, they can be set up—or amended—to have a transfer on death (TOD) designation, which lets beneficiaries receive assets without going through the probate process. Contact your custodian or bank to set this up on your accounts.
The information contained in this Website is provided for informational purposes only, and should not be construed as offering legal advice, or creating an attorney client relationship between the reader and the author. You should not act or refrain from acting on the basis of any content included in this Website without seeking appropriate legal advice about your individual facts and circumstances from an attorney licensed in your state. Rania Combs is licensed to practice law only in Texas. Rania Combs is physically located in Chapel Hill, North Carolina and meets with clients in Houston, Texas by appointment only.
