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Monday, September 26, 2011

MVP LAW GROUP – Estate Planning Q&A Forum, Friday, September 23rd, 2011

MVP Law Group, P.A. makes available the information and materials in this forum for informational purposes only. The information is general in nature and does not constitute legal advice or any contractual obligations. Further, the use of this site, and the sending or receipt of this information, does not create an attorney-client relationship between us. And, therefore, your communication with us through this forum will not be considered as privileged or confidential.


Question #1 – Power of Attorney
My nephew executed an advance directive directing his mother to serve as his agent. She has since taken advantage of this POA, how can my nephew revoke this POA, can he?

Answer #1
Your nephew may revoke the POA. If the POA was filed with the Clerk of Court, then he will need to draft and sign a statement revoking his POA, have it signed by two witnesses and notarized and filed with the court. He should also serve this revocation letter to his mother as notice of revocation of her power to act as Agent, and he should provide a copy of this revocation letter to his bank/financial institutions, so that no further unauthorized actions are taken.


Question #2 - Wills
Do I really need a will? I have less than 1M in assets, no children, been married but now divorced; but I own two homes and two rental properties?

Answer #2
Anyone who owns property, whether personal or real should make a will. There is absolutely no need to have a large estate to plan and prepare a will. Individuals with cash, vehicles, jewelry, furniture (personal property) should make a will to distribute their assets. Additionally, individuals owning land and/or houses (real property) should make a will.

If married, each spouse should make a will distributing their assets. Widows and single parents should also make a will to dispose of their most valuable possessions.


Question #3 – Prenuptial Agreement
I own my own business, never been married, no children, and just got engaged. I am considering a prenuptial Agreement, any advice?

Answer #3
You should 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.


Question #4 – Wills
Can I just use a self-help kit to draft my will or should I hire legal counsel to take care of this?

Answer #4
There are many self-help kits on the internet that allow individuals to prepare and plan their own wills; however, certain situations may require the expertise of a licensed professional who has experience in the estate planning process. It is always better to have the assistance of an experienced attorney to guide you through the challenging process. There are certain formalities that must occur when signing the will and without an attorney or real-life guidance, these formalities may not occur which can invalidate the will.


Question #5 - Wills
Do you normally include an alternate Personal Representative in your Last Wills?

Answer #5
Yes, it is our standard policy to include a provision naming a personal representative and in the event that they cannot so act or are precluded from acting for a specific reason, the provision allows you to appoint a second/alternate Personal Representative.


Question #6 – Power of Attorney
Why would I prepare a Power of Attorney?

Answer #6
A POA allows an individual who may be elderly, sick, planning to be out of state or the country, or otherwise unable to act on their own behalf to authorize another to act in their best interests in regards to their property and business transactions


Question #7 – Wills
I heard that if I do not draft a will, my property/belongings could go to the state. Is this true? How is that possible?

Answer #7
If you die without a will, you will have died intestate; meaning your property and belongings will be distributed through the strict intestacy laws of the State. (Please check out our website to view the intestacy laws for the State of Maryland). In other words, without a will, your possessions will be dispersed to your closest relatives, and if you have no living heirs, to the State. Therefore, in order to protect your family and your belongings, it is extremely important that everyone makes a valid will; otherwise the State may get to determine how your property is distributed.


Question #8 – Advance Directive
Why would I prepare a Living Will/Advance Directive/Health Care POA?

Answer #8
You should prepare an Advance Directive because life is full of unexpected events and issues. 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. Having an Advance Directive will save your family time and money.


Question #9 – Advance Directive
If I have changed my mind about receiving life support, can I change my Advance Directive?

Answer #9
You may revoke your Advance Directive at any time. You are completely in control of your health care directions, and if your desires change at any time, you should destroy the original and execute a new Advance Directive to reflect your wishes. You should also inform all who have a copy to return it to you to be destroyed, and let them know that you have revoked it, as your health care directions have changed, and if possible, provide them with a copy of the new Advance Directive.


Question #10 – Wills
My husband and I have not updated our wills in twenty years; our children now have their own children. What is your recommendation on updating the will(s)?

Answer #10
You may make changes to your will whenever desired and should when your current situation changes. For instance, if you move to a new state, get married or divorced, have a baby, have step children or adopt, and if you acquire or dispose of substantial assets, you should change your will to reflect your current situation.

You may make changes by adding a codicil to your existing will or by creating an entirely new will. Depending upon the changes that have occurred in the last twenty years, you may want to consider creating an entire new will.


MVP Law Group would like to thank everyone who contributed a question or comment.


Our next “Estate Planning Q & A Forum” is scheduled for Friday, October 7th, 2011!

Please remember to submit your questions/comments on our Website, Facebook or Twitter.

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