We The People's Guide to Estate Planning: A Do-It-Yourself Plan for Creating a Will and Living

322 Pages·2005·2.07 MB·English

by  Ira Distenfield, Linda Distenfield

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We The People’s
G U I D E T O
Estate Planning
A Do-It-Yourself Plan for
Creating a Will and Living Trust
Ira Distenfield and Linda Distenfield
John Wiley & Sons, Inc.
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12283_Distenfield_ffirst.m.qxp 2/22/05 10:25 AM Page i
We The People’s
Guide to
Estate Planning
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We The People’s
G U I D E T O
Estate Planning
A Do-It-Yourself Plan for
Creating a Will and Living Trust
Ira Distenfield and Linda Distenfield
John Wiley & Sons, Inc.
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This book is printed on acid-free paper. ⬁
Copyright © 2005 by We the People Forms and Service Centers USA, Inc. All rights reserved.
Published by John Wiley & Sons, Inc., Hoboken, New Jersey.
Published simultaneously in Canada.
No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form
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Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts
in preparing this book, they make no representations or warranties with respect to the accuracy or
completeness of the contents of this book and specifically disclaim any implied warranties of
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Library of Congress Cataloging-in-Publication Data:
Distenfield, Ira, 1956–
We the people’s guide to estate planning : a do-it-yourself plan for creating a will or living trust /
by Ira and Linda Distenfield.
p. cm.
Includes index.
ISBN 0-471-71667-7 (pbk.)
1. Estate planning—United States—Popular works. 2. Wills—United States—Popular works.
3. Living trusts—United States—Popular works. I. Title: Guide to estate planning.
II. Distenfield, Linda, 1942– III. Title.
KF750.Z9D57 2005
346.7305—dc22 2004065765
Printed in the United States of America
10 9 8 7 6 5 4 3 2 1
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CONTENTS
Foreword Bill Lockyer vii
About the Authors ix
Acknowledgments xi
Introduction 1
Chapter 1: What Happens When Somebody Dies? 9
Chapter 2: Do I Need a Will? 25
Chapter 3: Do I Need a Living Trust? 49
Chapter 4: The Living Trust Up-Close 77
Chapter 5: Powers of Attorney, Successor Trustees, and
Beneficiaries 107
Chapter 6: Taxes 147
Chapter 7: Settling the Estate 165
Chapter 8: Frequently Asked Questions 191
Chapter 9: Estate Planning Terms 209
Appendix A: Last Will and Testament Samples 219
Will Sample (Last Will and Testament of
Gregory Brown) 220
Codicil Sample (Codicil to the Will of
Debra Close) 222
Appendix B: Living Trust Samples and Additional Documents 223
Appendix C: List of We The People Stores 295
Index 301
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FOREWORD
Bill Lockyer
California Attorney General
ccess to information is essential to life. Access to the legal system often supports a success-
ful life. As Attorney General of California, I am a great admirer of We The People and the
A progress this enterprise has made to significantly improve access to the legal system for all
Americans. We The People has led the way by being dedicated to arming people with the infor-
mation to understand difficult legal situations and the roles that certain legal documents can
play in their lives.
My ability to access quality information has allowed me to make good decisions through-
out my personal and professional life. That’s the whole point of information: It permits you to
solve problems and be a smart and confident decision-maker. Information educates, trains,
prepares, and opens new doors. It imparts knowledge; and it can also console, warn, and
advise. I like to think of access to information as a basic necessity alongside food and water,
and therefore it should be easy, inexpensive, and inviting. Unfortunately, it’s not always that
way. When it comes to the legal system, the gap between those privileged to access and use the
law to their advantage and those who cannot is real for many Americans. Crafting documents
that allow families to plan their future and leave the things they own to the people they love
should not be an opportunity available only to a select few. Wills and living trusts are among
the most powerful documents anyone can create, and anyone who wants to create these docu-
ments ought to be able to do so if they can. And with the right help, most people can.
As Attorney General I have witnessed the law’s positive impact on people’s lives, but I’ve
also watched the legal system grow more complex and expensive every day. For too many
Americans, the legal system is an 800-pound gorilla that sits on the other side of the table.
One can have all the technology that money can buy and yet still feel completely cut off from
the legal system, or the opportunity to execute documents, such as a will or living trust, that
must meet specific legal standards to be enforceable when you need them most.
Every day, millions of Americans need to complete and file basic legal documents with the
courts. Many of these documents don’t require an attorney or a fancy degree to complete. I
understand the need for competent independent counsel when necessary, but I also support the
right to manage one’s own legal affairs. Ira and Linda Distenfield founded We The People with
a simple mission: to serve people who need to make uncontested legal transactions but who
don’t know how to approach the legal system and who neither have the resources nor desire to
hire a lawyer. What I like best is seeing people served regardless of wealth or privilege.
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FOREWORD
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This book helps you navigate the complex and daunting task of estate planning while pro-
viding do-it-yourself assistance for document preparation. Whether you can afford an attor-
ney or estate planner or not, this book equips you with the knowledge and skills you need to
control the creation of your own will or living trust. Good information and competent advice
are the two most important ingredients for all legal documents, and here you’ll find the infor-
mation you need to understand how wills and living trusts work, and what you need to do to
prepare intelligently for your family’s future. Wills, and especially living trusts, are unfamil-
iar territory for most of us, but We The People has managed to map it out for you and tell what
you need to know about every point of interest along the way.
Creating a will or living trust is a very important responsibility, and a task I hope more
and more individuals and families will consider doing every year. It’s easier than you think.
Twenty years ago few people had personal computers; no one had heard of the Internet;
no one had e-mail or a way to carry a library of information on a computer chip that you keep
in a hand-held device the size of your wallet. Fast-moving technology has given us ever more
access to more information, has changed our expectations, and has changed our way of think-
ing. The impact that widespread information has had on Americans is evident: Americans feel
better equipped and comfortable making pivotal life decisions, such as entering the housing
market, changing careers, or starting a small business. Why? Information empowers people
to change their lives for the better and make hard decisions. It is the ultimate equalizer.
My experiences have taught me about responsibility, leadership, and the value of being an
independent thinker. I prepare relentlessly and always encourage others to do the same
through studying, reading, and learning independently. My advice for anyone thinking about
a will or living trust is to gather as much information as you can—seek the knowledge you
need to be in charge of the decisions you need to make. Only then will you find the right
advice to assist you in your endeavor. Only then can you be sure you’re doing your absolute
best to plan for and safeguard your future.
Success is not measured by status or wealth, but by how we deal with the challenges we
face, by how we overcome those challenges through the decisions we make, and by the steps
we take to move forward in our lives. This book allows you not only to access and gain infor-
mation, but also to use the information to make sense of a difficult topic and take control of
your family’s future. You are entitled to create a will or living trust just as much as anyone else.
Be well prepared for whatever course you take—with or without estate planning professionals
by your side—and you’ll move forward with greater peace of mind for you and your family.