Introduction – Prenuptial Agreements/Premarital Agreements

Welcome Back to the MVP Estate Planning Blog!

Please feel free to ask questions and engage in the discussion. We will not know how to adequately address your needs and concerns unless you provide us with some feedback.

In this post, I will provide you with basic information regarding Prenuptial Agreements/Premarital Agreements. Most people are not familiar with the term Pre-Marital Agreement, yet it is identical to and operates in the same manner as a Pre-Nuptial Agreement.

Preparing a Pre-Marital agreement is a process that involves significant planning and preparation for both parties to the agreement. We have taken the time to assemble a brief Q&A regarding the essentials related to the planning and preparation of your Pre-Marital Agreement.

What is a Pre-Marital Agreement?
A pre-martial agreement is an agreement made between two people who are contemplating marriage. The agreement requires full and frank disclosure from both parties. It provides a list of all property each person owns and their accompanying debt.

The agreement also lays out the rights, duties and responsibilities of the parties during and upon termination of the marriage through death or divorce. This agreement must be in writing and signed by both parties, with fair and reasonable terms free from fraud and duress to be enforceable in court. The agreement will become enforceable upon the marriage of the parties.

Should I get a prenuptial?
Prenuptial agreements used to be looked down upon; however, they now are becoming more acceptable in our society. You should definitely consider entering into a prenuptial agreement if you have children from a previous marriage, you own significant amounts of property, have previously been married, have a salary over $100,000, or own a business and/or family business. There are four main purposes of a prenuptial agreement: to avoid costly litigation, to protect family and/or business assets, to protect against creditors, and to give you assurance that marital property will be disposed of properly. If you do not have a prenuptial, the State of Maryland will divide the assets of the marital union based on an equitable distribution, equitable does not necessarily mean “equal,” in the event of a divorce.

Should I seek independent counsel?
YES, absolutely. Each party to the marriage should seek independent counsel before entering into a prenuptial agreement so that there is full and frank disclosure, a full understanding of the rights, duties and responsibilities of the parties to the agreement, and to ensure that the agreement is free from duress and fraud. If one party seeks counsel and the other does not, and the terms of the agreement are unfavorable to one party, the entire agreement may be considered unenforceable in a court of law.

What must be disclosed in a pre-marital agreement?
Certain information must be provided by both parties to the agreement, that particular information is provided below:
• Checking accounts
• Certificates of Deposit, Savings Accounts
• Stocks & Bonds
• Mutual Funds
• Real Estate
• Business Interest/Ownership
• Retirement Benefits (IRA, 401(k), other retirement benefits)
• Life Insurance polices/annuities
• Other Trusts, Anticipated Inheritance
• Personal Property (cars, boats, etc)
• Other Personal Property (home furnishings, jewelry, collections, etc)
• Liabilities (home mortgage, debts, etc)
• Other Assets
• Most recent personal federal income tax return

What types of things may be included in a pre-marital agreement?
A prenuptial agreement can include a wide array of things. It may include the following types of provisions:
• Alimony/Spousal Support or Waiver thereof
• Use or nonuse of Joint Bank Accounts
• Filing of Tax Returns
• Agreements about specific purchases or projects
• Purchasing a home/starting a business
• Use/nonuse/limited use of Credit Cards
• How to settle future disagreements
• Lifestyle clauses
• Right to inherit
• Right to be named beneficiary of life insurance policy and/or retirement benefits
However, personal agreements as to household chores, exercising, cooking, etc should be kept out of the agreement, as they are not binding in court, and may cause a Judge to take your pre-martial agreement less seriously.

What CANNOT be included in a pre-marital agreement?
Prenuptial agreements have been drafted to include almost anything; however, there are certain provisions that cannot be included and if they are, will be stricken and unenforceable. Those provisions are provided below:
• Illegal actions and issues that are against public policy
• Restricting child support, custody or visitation rights
• Financial incentives for divorce
Almost anything else may be included in a prenuptial agreement and have been included in such agreements.

Can I revoke my pre-marital agreement?
A pre-martial agreement may be revoked after the marriage by written agreement signed by both parties, free from fraud and duress.

**Words of Advice**:
Speak with your significant other regarding the benefits, and disadvantages of a prenuptial agreement before seeking the assistance of experienced attorneys. It will make the whole process and the final document more balanced if you have the necessary time and patience to discuss your options with your partner before preparing the document. It’s best to have a written outline prepared beforehand of what you want included in your prenuptial agreement.

If you or a loved one is contemplating a prenuptial agreement, think about it, discuss it with your partner, and contact our law firm for more information.

Our helpful and capable staff invites you to contact us today to schedule an informative, 30 minute free, initial consultation with an estate planning attorney.

PLEASE LOOK FORWARD TO OUR NEXT BLOG POSTING SCHEDULED FOR TUESDAY, JUNE 1, 2010

Advance Directive – Need More Information?

Welcome Back to the MVP Estate Planning Blog!

Please feel free to ask questions and engage in the discussion. We will not know how to adequately address your needs and concerns unless you provide us with some feedback.

In this post, I have provided a plethora of resources for you to find out any and all things related to the Advance Directive, otherwise known as a Living Will or Health Care Power of Attorney.

ADVANCE DIRECTIVES RESOURCES:

 American Medical Association
Advance Care Directives


 American Hospital Association
Put It in Writing


 National Cancer Institute
Advance Directives


 American Heart Association
Insurance, Legal Issues and Advance Directives


 The AGS Foundation for Health in Aging
Advance Care Planning & Advance Directives


 Caring Connections
Planning Ahead


 National Alliance on Mental Illness
Advance Directives


 American Bar Association
Health Care Advance Directives


Our helpful and capable staff invites you to contact us today to schedule an informative, 30 minute free, initial consultation with an estate planning attorney.

PLEASE LOOK FORWARD TO OUR NEXT BLOG POSTING SCHEDULED FOR TUESDAY, MAY 18, 2010

What is an Advance Directive?

Welcome Back to the MVP Estate Planning Blog!

Please feel free to ask questions and engage in the discussion. We will not know how to adequately address your needs and concerns unless you provide us with some feedback.

In this post, I will inform you of the definitions for the most basic terms used. I will also provide you with a general overview of what an Advance Directive (Living Will/Health Care Power of Attorney) is and how it is used.

DEFINITIONS:
 Advance Directive -
An advance directive is your life in your terms. It allows you to document your wishes concerning your health care. It is effective upon signature when signed in front of the required amount of witnesses. The State of Maryland has combined the living will and health care power of attorney and uses the term “Advance Directive”.

 Living Will -
A living will allows you to leave instructions for your health care treatment. It usually provides specific directions about the course of treatment that is to be followed by health care providers and caregivers. A living will may be general or very specific, a specific living will may include information regarding an individual's desire for such services such as analgesia (pain relief), antibiotics, hydration, feeding, and the use of ventilators or cardiopulmonary resuscitation.

 Health Care Power of Attorney -
A health care poa authorizes someone appointed by you to make decisions on your behalf concerning your health care when/if you are incapacitated.

 Health Care Proxy -
A health care proxy is a document that allows you to appoint an agent to make health care decisions in the event that you are incapable of executing such decisions. Once the document is drafted, you may continue to make health care decisions as long as you are still competent to do so.

 Limited POA -
A limited POA may only encompass certain types of transactions and/or may be limited in duration. It may involve the selling of real estate, the closing of a bank account, or it may be valid for the time that you on vacation outside of the country, etc. Limited POAs are drafted to fit individual needs on a one-time basis or for a limited period of time and are usually your best choice.

 Durable POA -
A durable POA is effective upon signature, or at a designated time and will continue to be effective if the Principal becomes incapacitated, disabled or incompetent.

WHAT IS IT?
Advance Directives are documents in which you express your healthcare wishes and appoint a person to make decisions for you if, someday, you can no longer speak for yourself. If you do not prepare health care documents, the state law tells your doctors what to do.

The advance directive allows you to make decisions concerning the following types of medical procedures/health care issues: Admission and/or Discharge from Hospital, Hospice, Nursing Home, or other medical facility; Request to Receive Protected Health Records as your Personal Representative under HIPAA; Withholding/Withdrawing Life-Prolonging Procedures; Withdrawing Food & Water (Artificially Administered Nutrition & Hydration); Palliative Care; Authorizing Organ, Tissue or Body Donation; Authorizing an Autopsy; Authorizing Disposition of Your Remains; Nominating a Guardian, and in many states Pregnancy (you may indicate whether or not you want Health Care directions carried out in the event of your pregnancy).

With an Advance Directive in place, your health care directions will be carried out in the event that you are unable to communicate with your doctor, hospital, and/or loved ones.

HOW IT WORKS?
You should distribute copies of your Advance Directive to your agent, doctors, or medical facility most likely to treat you, otherwise it will be wasted time, money and words on a sheet of paper. Your Advance Directive should be in the hands of the people who need to know about it, so that your health care directions are carried out in accordance with your wishes.

If your Advance Directive is valid (signed by the appropriate amount of witnesses, and the person whom you have listed as your health care agent is not in violation of State law), then your agent, doctors and medical facility most likely to treat you must follow your wishes regarding your health care treatment.

We hope that the information presented in this post is helpful for our readers. If you have any questions or concerns, please address them in the comment box provided below.

Our helpful and capable staff invites you to contact us today to schedule an informative, 30 minute free, initial consultation with an estate planning attorney.

PLEASE LOOK FORWARD TO OUR NEXT BLOG POSTING SCHEDULED FOR WEDNESDAY, MAY 11, 2010