Wills A ______________________by which a person decides how to transfer his/her property at death. A last will and testament acts like the voice of a deceased person. There is __________________between parties Must be ________________________to be valid If there is no Will, there is a potential problem Dying without a will (__________________) can be costly to your heirs (COURT COSTS) and leaves you no say over who gets your assets.

Changing or Revoking a Will: Codicils __________________ - modify a will without revoking it. Reasons for changing a will: Health or financial circumstances change Births, deaths, marriages, or divorces Testator moves to another state Executor, trustee, or guardian can no longer serve Substantial changes occur in the tax law

Changing or Revoking a Will: Codicils (continued) Will may be revoked by testator, or law, when Later will expressly revokes prior wills Codicil expressly revokes wills earlier than one being modified Later will is inconsistent with a former will Physically mutilating, burning, tearing, or defacing the will with the intention of revoking it

Why it is important to make a Will? You choose your own executor to carry out your wishes You appoint a guardian for your minor children and children yet unborn You avoid an intestacy and rules which can send your property in unexpected directions (even to the government) A will can provide flexibility and cost control in administering your estate Avoids much uncertainty and anxiety and drawn-out procedure for your family

Putting together an Estate Plan No matter your net worth, it's important to have a basic estate plan in place. Such a plan ensures that your family and financial goals are met after you die. An estate plan has several elements. 1. 2. 3. A living will (also known as an advance medical directive) is a statement of your wishes for the kind of life-sustaining medical intervention you want, or don't want, in the event that you become terminally ill and unable to communicate. (life support) 4. A health-care proxy is when you sign a legal document in which you name someone you trust to make medical decisions on your behalf in the event that you can't do so for yourself. A health-care proxy applies to all instances when you're incapacitated, not just if you're terminally ill.

WILLS A person who dies without making a will is said to have died In dower Alone In curtesy Intestate In codicil

The property of the deceased _____________________ IF THERE ARE NO INHERITORS The property of the deceased _____________________ ____________________ to the state.

____________________ is a legal union of a man and a woman as husband and wife.

_______________________occur when a single woman and a single man lived together, shared common property, and held themselves out as husband and wife over a prolonged period of time (usually 10 years or longer). Today, about one-fourth of our states allow common-law marriages, although all states must recognize such a union if it is legal in the state in which it occurred. New Mexico

A _______________also is known by the term same-sex marriage in some areas. In addition, states other than adopting states do not have to recognize such unions.

What is the current divorce rate? ___________________________ What is a big reason(s) why people get divorced? 1. 2.

Community Property Each spouse is regarded as contributing to the well being of the family and equally shares in the financial well being of the community Each spouse has a one-half interest in any property \ ________________________________________________ In the United States there are ____________________property states: Alaska, Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin. Alaska is an opt-in community property state; property is separate property unless both parties agree to make it community property through a community property agreement or a community property trust. Puerto Rico allows property to be owned as community property also as do several Indian jurisdictions.

When Does Community Property Matter? Community property becomes an issue when: The marriage is dissolved One spouse dies One spouse wishes to dispose of some of the community property

Separate Property Separate Property Includes Property held by a spouse prior to marriage Property received as a gift or inheritance by one spouse Rents, interests, or profits from any separate property

Separate Property New property purchased with the proceeds of separate property is considered separate property This concept is called tracing If the $$$ used to obtain property came from the community, the new property is community property If the $$$ used to obtain property came from one spouse’s separate property, the new property is that spouses separate property

Purchases of Mixed Property When property is purchased using both community and separate property, the property is proportioned

Dissolution of Marriage Upon dissolution of marriage, each spouse gets: His or her separate property One half of all of the community property This does not mean that you split the house in half – it means that the court will balance the distribution of property so that each gets ½ of the total value

Distributing Property Judges have a great deal of discretion to equitably distribute the community property and give one spouse more or less than 50% of the community property For example, if the husband is a drug addict who has never held a job, the court may not grant him ½ of the community property accrued through the wife’s labor

Death Community property laws limit a spouse’s ability to dispose of all property at the other spouse’s death At death, a spouse may dispose of: His or her separate property One half of the community property The remaining ½ goes to the deceased spouse’s heirs (if any)

equitable distribution The marital assets and debts of the parties (marital property) will be divided __________________________________ _____________________________________ This does not necessarily mean equal. The assets and debts will be divided in a manner that fairly represents the parties contributions to the marriage. For example, a judge may rule that if assets were brought into the marriage, but have appreciated in value, the marital portion (the appreciation) would be subject to equitable distribution based on what contributions were made. All other assets = ½

Prenup? GOLDDIGGER What is it? A ______________________or ___________________, commonly abbreviated to prenup is a contract entered into (by both parties) prior to marriage, civil union or any other agreement prior to the main agreement by the people intending to marry. The content of a prenuptial agreement can vary widely, but commonly includes provisions for division of property and spousal support in the event of divorce or breakup of marriage. They may also include terms for the forfeiture of assets as a result of divorce on the grounds of adultery, further conditions of guardianship may be included as well. _______________________is essentially a pre-nuptial agreement signed after a marriage has already taken place. For a variety of reasons, a couple may decide they want to more clearly define division of assets once they are married.

New Addition to Pre-Nup: SOCIAL MEDIA CLAUSE A typical social media clause will state that couples can’t post nude photos, embarrassing photos or photos or posts that are likely to harm a spouse’s professional reputation. You don’t pick and choose between what’s acceptable for Facebook versus Instagram, but do more of a blanket provision for all social media. The penalty for violating the social media clause has been monetary. The amount set depends on a person’s wealth. For example, for someone living in New York City who makes below $5 million, the clause that’s used with it is $50,000 per episode, meaning per post or per tweet. You want to establish boundaries, what will be off limits, what will be private, what are the acceptable areas of your private lives that you want to post online.