fiscal responsibility - wills

costanza

Sun, Jul 20 2008, 8:28 am

A friend of mine who was visiting from Israel recently told me that someone she knows started a new not-for-profit organization aimed at educating Israelis (secular and dati) about fiscal responsibility. She said she is trying to teach them about saving for the future, investment strategies, ensuring they have legal documents in order (wills), ensuring they have insurance for their homes, cars and life insurance too.

After being on this website for a while, I have been really surprised at some of the things I have read vis a vis finances. Not to generalize by any means, but I have read more than once of people who live on small incomes and do not really think beyond tomorrow when it comes to their money. I have also heard more than once that Hashem will provide. While my faith in Hashem shouldn't be questioned here, I firmly believe individuals have to do what they can to have as secure a future (and present) as possible.

I won't ask about people's cash situations - I've read plenty about that in other threads. But how many of you don't have wills? I really hope that everyone - most importantly people with children - have done this.

Atali

Sun, Jul 20 2008, 12:29 pm

micfri wrote:

Good question. I totally agree with you about the importance of having a will (especially in the halachic sense, since it can eliminate problems of conflicts between secular law and halacha by enabling the estate to be dividied to whomever one wishes, including daughters).

That said, I don't have one (yet). I have thought about it, but need to first figure out exactly what to put in, and find a lawyer to help me put it together, etc.

bonitag1

Sun, Jul 20 2008, 3:08 pm

here are the kinds of things you need to consider in preparing for a will:

1) select a lawyer. He/she will help you with making sure the will is written and signed in the way that makes it legally binding. For most people this shouldn't cost a lot of money. Shop around if necessary.

2) decide if there are any specific items (e.g. your shabbos candlesticks) that you want to give to a specific person

3) decide if you want to divide your estate between your kids equally. There is also the question that if one child has three grandchildren and the other six, do you want to change the distribution to reflect this. Consider that your will may not take effect for many years.

4) you need to pick someone to be the executor, which is to carry out the terms of the will. Then someone to be the trustee (someone to watch over and take care of any money being held for a person who is a minor), and then a guardian (someone who will raise/look after your kids). These need not be the same person(s). The lawyer will usually ask you to pick alternates for these people as well, in case someone is unavailable, unable to do the job. These should be people who are close to you, who you trust and who will carry out your wishes without being paid.

5) You may be asked to come up with some witnesses (up to 3) unless the lawyer uses people from his office. These are people who are located nearby, who are not named in the will or related to you. You only need a short amount of their time to be present during the will-signing.

Usually husbands and wives write reciprocal wills, which means that each leaves their estate to the other, with the children to take only in the event that your spouse is not living at the time your will goes into effect. This is unpleasant stuff to think about but its important to consider all possibilities since, at the time your will goes into effect, you won't be around to correct any misunderstandings or fill in any gaps.

For specific advice, consult YLA (your local attorney).

freidasima

Sun, Jul 20 2008, 3:14 pm

Our first will was made through a lawyer, but since that time I learned the laws here in EY and you can type up a will by yourself using the legal formula and sign it and have two wittnesses not related to you nor to each other sign and it is fully legal.

First start with a paragraph that you are of sound mind and body and that this will supersedes any other wills made by you in the past.
Then a paragraph that this will includes all your possessions, equities, properties, etc.
Then a paragraph that first and foremost appoints someone to carry out the will (there is a legal term for this in every language - in English "executor", in Hebrew other terms etc.).
Then a paragraph that first and foremost the executor has to use your money to pay for your burial and headstone expenses and to pay off any debts etc.
Then divide up whatever you have as you wish.
If you have life insurance it already has a beneficiary listed so you don't have to include that.
Only include money, equity or property that is already yours, not what you will inherit from your parents or whomever in the future. If and when that happens, redo your will.

You can include all your children, including future ones by saying "and future children". Give full names, social security or teudat zehut or whatever numbers. If your children are under legal age appoint legal guardians and put that in the will. Decide whether you want the guardians (who you ask of course in advance) to have access to the children's inheritance to pay for their care (common) and decide if you want to put limitations on that access (only for certain things).

Then think of how you want to divide up your possessions. That includes everything. House or apartment, money, stocks, bonds, jewelry, books, furniture, sforim etc.

If you are getting older and your children are older, you may not want to divide equally, maybe unmarried children will need more if it looks like they aren't marrying, maybe just the opposite. Maybe girls need more than boys, maybe some of the kids have special needs. Put it all in the will. Remember that if they fight, you won't be there to make peace so think about it well. If you are dividing up special things like family jewelry, then try to be evenhanded.

You can also leave benefits to zedoko etc. of your choice, just put in the amount and the name of the zedoko.

You can also put another document together, and that is what is called an "ethical will" meaning the mussar and teachings that you want to leave for your children. That of course doesn't require wittnesses.
But it is important for their neshomo...

May Moshiach come before we need to use any of these...

cdawnr

Sun, Jul 20 2008, 8:34 pm

We did this after ds was born. I think it is VERY important.

MOre than money, we wanted to make sure that if Chas V'shalom something happened, it was clear that the kids would be with my bro who is frum, as oppossed to the rest of the family.

We did it with a frum lawyer who also had a special document for us because so that there would be no halachic issues with the inheritance as far as having a bachur went. basically, if I remember correctly, it turns over the property the minute before a person is nifter so that it is a gift, not an inheritance and the 1st born doesn't necessarily then get a double portion.