Wills and Estate Planning for Teachers

By Kenneth Vercammen, Esq.

Teachers work on an average more than 80,000 hours in a lifeti me. In
site of all our resources an! the assets we earn !uring our lifeti me, the vast
ma"ori t y of #mericans !o not take the ti me to create the legal instructi ons to
gui!e the court or a guar!i an. $ational statistics in!icate that more than %0&
of #mericans !ie wi thout leavi ng a will. In the a'sence of a (ill or other legal
arrangement to !istri 'ute roert y at !eath, the )tate may ste in to
a!minister the estate an! !eci!e who gets custo!y of your chil!ren an!
han!le thei r money. This rocess is calle! the law of intestacy. The resul t can
'e lengthy !elays in the !istri 'uti on of your estate, court 'attl es 'etween
relati ves an! your chil!ren 'eing raise! 'y someone you !o not favor.
(here there*s $o (ill +
,our assets go to whoever a state law says receives the assets, or to
the government itself- # (ill shoul! 'e a statement to the things you trul y
care a'out. your souse, your chil!ren, your arents, your frien!s, an! your
chari ties.

If you leave no (ill or your (ill is !eclare! invali! 'ecause it was
imroerl y reare! or is not a!missi'le to ro'ate.
/. 0eole you !islike or eole who !islike an! ignore you may get your
assets.
1. )tate law !etermi nes who gets assets, not you
2. #!!i ti onal e3enses will 'e incurre! an! e3tra work will 'e requi re! to
qualify an a!mi nistrator4 )urety Bon!, a!!i ti onal costs an! legal fees
5. ,ou lose the oortuni t y to try to re!uce Estate Ta3, )tate inheri tance
ta3es an! 6e!eral estate ta3es
%. # 7u!ge !etermi nes who gets custo!y of chil!ren. # gree!y 'rother or cra8y
mother in law coul! ask the court for custo!y.
9. If you have no souse or close relati ves the )tate may take your roert y
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:. The roce!ure to !istri 'ute assets 'ecomes more comlicate!
8. It ro'a'l y will cause fights an! lawsui ts withi n your famil y
(hen love! ones are grievi ng an! !ealing wi th !eath, they shoul!n* t 'e
overwhel me! with 6inancial concerns. # (ill must not onl y 'e reare! withi n
the legal requi rements of the state )tatutes 'ut shoul! also 'e reare! so it
leaves no questions regar!i ng your intenti ons.
Think 4 (ho !on* t you want to receive your assets; (ithout a (ill, they
coul! recei ve your assets an! request custo!y of chil!ren.
(ho is not the 'est choice to raise your chil!ren, or safeguar! your
chil!ren< s money for college; =o you want chil!ren, or gran!chil !ren, to get
money when they turn /8; (ill they invest money wisel y, or go to )easi!e
an! lay games;
Life Insurance
)ometi mes it is not wise to leave chil!ren as a 'eneficiary of life
insurance an! your ension if your chi!l!ren are un!er the age of 1/. ,ou
coul! make your estate the 'eneficiary of life insurance, an! ension, then
!irect in your (ill that the money 'e use! to rovi !e suort an! college
e3ense for chil!ren.
6or e3aml e, the (ill coul! rovi !e that any orti on of my resi!uary estate
which 'ecomes !istri 'uta'l e to a 'eneficiary un!er the age of twent y4 one >1/? years
shall 'e hel! as a searate trust 'y my E3ecutor until such 'eneficiary attai ns the age
of twent y4 one >1/? years. @y E3ecutor shall al y such amounts of income an!
rincial as he, in his sole !iscretion, !eems roer for the heal th, maintenance,
e!ucati on, welfare, or suort of such 'eneficiary an! shall accumul ate any
une3en!e! income not nee!e! for the a'ove uroses, aying an! transferri ng the
orti on hel! in trust to the 'eneficiary uon his or her attai ni ng the age of twent y4 one
>1/? years. 0rior to his or her attai ni ng the age of twent y4 one >1/? years, my E3ecutor
may al y such income or rincial for 'enefi t of such 'eneficiary !irectl y or 'y
ayment to the erson with whom such 'eneficiary resi!es or who has the care or
control of such 'eneficiary wi thout the interventi on of a guar!i an. @y E3ecutor shall
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not 'e o'ligate! to suervise or inquire into the alicati on of such amounts 'y such
erson, an! the receit of such erson shall 'e a comlete release of my Trustee.
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Even if you have an e3isti ng (ill, there are many events that occur
which may necessitate changes in your (ill. )ome of these are.

K @arriage, !eath, 'irth, !ivorce or searati on affecti ng either you or anyone
name! in your (ill
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K )ignificant changes in the value of your total assets or in any articul ar
assets which you own

K # change in your !omicile

K =eath or incaaci ty of a 'eneficiary, or !eath, incaaci ty or change in
resi!ence of a name! e3ecutor, trustee or guar!i an of infants, or of one of the
wi tnesses to the e3ecuti on of the (ill
K #nnual changes in ta3 law
K Fhanges in who you like

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,es. # (ill may 'e mo!ifie!, a!!e! to, or enti rel y change! at any ti me
'efore your !eath rovi !e! you are mental l y an! hysicall y cometent an!
!esire to change your (ill. ,ou shoul! consi!er revising your (ill whenever
there are changes in the si8e of your estate. 6or e3aml e, when your chil!ren
are young, you may think it 'est to have a trust for them so they !o not come
into a'solute ownershi of roert y until they are mature. Beware, if you
!raw lines through items, erase or wri te over, or a!! notati ons to the original
(ill, it can 'e !estroye! as a legal !ocument. Either a new (ill shoul! 'e
legall y reare! or a co!icil signe! to legall y change ortions of the (ill.
# ortion of your (ill an! Estate 0lanning can 'e !e!ucte! on your
income ta3 return when it !eals wi th ta3 lanning. Thus, art of the fee is ta3
!e!ucti 'l e for income ta3 uroses.
Gn!er the law in $ew 7ersey, if a erson !ies without a (ill an! wi thout
chil!ren, their souse will inheri t all assets, even if they are searate! from
the souse. In a!!i tion, if you have chil!ren from a revious marri age, 'ut no
(ill, your searate! souse will get half your estate. Therefore, you may
wish to !o the followi ng.
/? Aave an El!er Caw attorney reare a (ill to !istri 'ute your assets to the
eole you care the most a'out. If you alrea!y have a (ill, reare a new
(ill an! have the ol! (ill revoke!. > ,our estate lanni ng attorney will e3lai n
this to you.?
1? 0reare a 0ower of #ttorney to select someone to han!le your finances if
you 'ecome !isa'le!. Aave your ol! ower of attorney revoke!.
2? 0reare a Civing (ill reare!
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5? Fhange your 'eneficiary on assets you may own, such as stocks, 'ank
accounts, IE#, an! other financial assets. Fhange your 'eneficiary un!er your
own life insurance, whether whole life insurance or term insurance.
%? Fontact your human resources erson an! change the 'eneficiary on life
insurance, ension, stock otions or other emloyee 'enefi ts. $ote that your
souse must sign a wri tten wai ver ermi t ti ng you to change 'eneficiaries.
9? Kee your ersonal aers at a location where famil y can fin! them.
:? Aave your attorney reare a renuti al agreement if you !eci!e to get
re4marrie!.
8? @ake sure the trustee for any fun!s !esignate! for your chil!ren is the
LrightL trustee.
J? In $ew 7ersey, if you are marri e! an! living wi th your souse, un!er
certai n instances the survi vi ng souse has a right to Lelect against the (illL
The !isinheri te! souse may like to elect against the (ill an! try to o'tai n
one thi r! of the estate. ,our attorney can e3lai n how you can rotect
yourself an! your chil!ren.
/0? If you have minor chil!ren, nomi nate someone un!er a (ill to serve as
guar!ian to the chil!ren. #lthough the survi vi ng arent o'viousl y has first
right of custo!y of chil!ren, they may not even want custo!y.
)#VE @B$E,4 Aave your attorney reare a self4 rovi ng (ill wi th a $o 'on!
clause
,our estate will 'e su'"ect to ro'ate whether or not you have a (ill an!
in most cases, a (ill re!uces the cost 'y eli minati ng the requi rements of a
'on!. (ith a well4 !rawn (ill, you may also re!uce !eath ta3es an! other
e3enses. =on* t inch ennies now to the !etri ment of your 'eneficiaries
The roer rearati on of a (ill shoul! invol ve a careful anal ysis of the
your assets, famil y an! !esires.
Estate 0lanning is the rocess of e3ami ni ng what will haen to your
roert y when you !ie an! arrangi ng for its !istri 'uti on in such a manner as
will accomlish your o'"ecti ves.
The cost of a (ill !een!s on the si8e an! the comle3i t y of the estate
an! the lans of the erson who makes the (ill.
Be sure your (ill takes into account the 10/0 6e!eral Ta3 changes an!
any Inheri tance Ta3 changes. #lso, ascertai n if your (ill is Mself4 rovi ngN,
which woul! !isense wi th having to fin! the (ill*s wi tnesses after !eath.
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40ower of #ttorney4 to allow a truste! erson to a!mi nister your assets
!uring your lifeti me, either uon !isa'ili ty or now
4Civing (ills4 to state your wishes concerni ng me!ical care in the event of
your serious illness
4Trusts >an! @e!icai! Trusts?
CONCLUSION
0lanning can only 'e !one if someone is cometent an!Oor alive. @ake
sure your assets can 'e asse! !irectl y to your love! ones. Kenneth #.
Vercammen is a @i!!lese3 Founty trial attorney who has u'lishe! /1%
articles in national an! $ew 7ersey u'licati ons on litigati on toics. Ae has
'een selecte! to lecture to trial lawyers 'y the #merican Bar #ssociation, $ew
7ersey )tate Bar #ssociation an! @i!!lese3 Founty Bar #ssociation.
Fall our office to sche!ule a confi!enti al aoint ment :214 %:14 0%00
KENNETH VERC!!EN " SSOCITES# PC
TTORNE$ T LW
10%2 (oo!'ri !ge #ve.
E!ison, $7 088/:
>0hone? :214 %:14 0%00
>6a3? :214 %:14 0020
we'si te. www.n"l aws.com
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