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FOR THE LOVE OF MONEY: It's So Hard To Say Goodbye To Yesterday
*After a little over a year hiatus, I'm happy to be returning to my weekly column. A lot has happened over this last year, including a new baby and a move across country to the "A."
The good news is that I'm back and bringing you finance and legal commentary ripped from the headlines.
The sad news is that this article focuses on the sudden and unfortunate loss of Bernie Mac and Isaac Hayes. "It's So Hard To Say Goodbye To Yesterday," (G.C. Cameron, 1975 and Boys II Men, 1991).
I remember Bernie on "Get On The Bus" like it was yesterday. Who could forget when his phrase "Baby Girl" became the "it" saying? Isaac Hayes was the epitome of 70's cool; "Can You Dig It?"
Their deaths are yet another reminder that we all need to make sure we have our house in order before we go. The most basic start is to ensure that you have a Last Will and Testament.
There is a common misconception that only rich people need wills. The reality is that if you care about what happens to your property or your kids, you should have a will. Why? Because without one, these decisions will be left to the discretion of your state. This means all your money could go to your crazy cousin Cleofus; or even worse, he may get custody of your kids! Here are a few basic things you need to do your Will:
Basic components
A will is legal document that allows you to decide how your assets get distributed after you die. You can also determine who will get custody of your children.
The basic information you need to complete your will includes:
• Your full name
• Address
• Social security number
• Name of your parents, spouse, kids, and other beneficiaries (i.e., people who you want to leave you assets)
• List of your assets (i.e., your bank accounts, stocks, bonds, real estate, and personal property such as jewelry, clothes, furniture, etc.)
• Name of the executor (i.e., person who will manage your affairs)
• Name of the guardian (i.e., person who will look after your minor children
In addition, must sign your will in the presence of several witnesses, use a Notary Public and have everyone sign a self-proving affidavit (i.e., a document that goes along with a will that proves this is truly your official document).
Who gets it?
Perhaps nothing is more important and in many ways difficult than deciding who should receive the assets from your estate. These gift requests should be extremely clear and concise. For example, if you want you 1986 Members Only Jacket™ to go to your home girl (Nickname Candy Girl), make sure you state just that (but use her government name; after all this is a legal document).
But you can't give away all of your property under your will. The following assets already have designated beneficiaries; meaning when you die those assets will go to that designated person(s):
• Life insurance
• IRAs (Individual Retirement Accounts)
• Joint Checking and Savings Accounts
• Real Property that you own with a spouse or another individual
Appoint a Friend
You must also appoint someone to look over and manage your will. Known as an executor, this person will make sure that your wishes are followed. You should obviously pick someone that you trust. Also, look for someone who you think can handle the stress of dealing with your relatives, courts, funeral home, creditors, taxes, banks, etc. In the case of caring for your minor child, you will also need to appoint a guardian.
Safe Keeping
Your will should be stored in a safe place. Keep in mind; a copy is not filed with the court until after your death. Many people chose to keep a copy with an attorney or in a bank lock-box. You should also make sure that your executor has a copy of your will.
Attorney or Do-It-Yourself
At the outset, I highly suggest that you consult an attorney who specializes in wills and estate planning for help in devising your plan. But a lawyer's fees for even the most basic will can start at $500 to $1,000.
If you can't afford an attorney, there are a few websites that have forms you can purchase for a small fee such as www.uslegalforms.com, www.legalzoom, www.findlegalforms.com, www.buildawill.com and www.nolo.com.
Keep in mind, that none of these forms are good substitutes for legal advice that can take into account your exact fact pattern. Also, if you have a business or expect someone to challenge your will (i.e., you are disinheriting someone or putting stipulations so your kids cant get anything until they turn 35) you really need to consult a lawyer.
Note - The information contained in this article is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation. We in no way endorse, guaranty, warrant or otherwise represent the veracity of any of the Web sites provided in this article. As always, the reader should do his or her own due diligence when giving personal information based on any information read online.
Shannon King Nash is the author of the award-winning book entitled, "For the Love of Money: The 411 to Taking Control of Your Taxes and Building Your Net Worth." She uses song lyrics and entertaining stories ripped from the headlines to teach readers how to manage their finances and taxes. Shannon is also a CPA and Tax Attorney who has been featured as an expert publications such as: Global Finance Magazine, Jet Magazine, Essence Magazine, Ebony Magazine, ABC News Online, Upscale Magazine, The Chronicle of Philanthropy, L.A, Parent Magazine and The Washington Times. Visit her website at www.nashgroup-usa.com.
Make Shannon one of your friend's on MySpace! Click here: www.myspace.com/shannonnash.
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