What is the Purpose of a Power of Attorney?

A Power of Attorney is a legal document which designates another individual to act on your behalf should you be unable to do so due to physical or mental incapacitation. A Power of Attorney can give a blanket or general authorization for another individual to perform any and all of the tasks you would normally perform, if you were able. It can also authorize an individual to perform one single task or limited duties during a specified period of time, thus revoking his or her authorization once that task has been completed or that time period has come to an end.

The type of Power of Attorney you chose will depend on your specific needs. In addition to the Limited and General Power of Attorney mentioned above, there is a Durable Power of Attorney which would go into effect at any point you became incapacitated and unable to act on your own behalf. The final type is referred to as a Springing Power of Attorney and is a form of Durable Power of Attorney. The primary difference is that with the Springing Power of Attorney certain circumstances or conditions must be met before the Power of Attorney would go into effect. Any type of Power of Attorney can serve to give you a peace of mind that your affairs will continue to be managed as you would have.

Our firm has a reputation for providing clients with high-quality service and professional legal representation in a range of trust and estate-related matters, and we take pride in being able to help clients protect the assets and estates they have worked so hard to build. For more information about estate law, trusts, and the various types of Powers of Attorney, contact the Law Offices of David A. Shapiro, P.C. and schedule a meeting with a Los Angeles trust litigation lawyer at your earliest convenience.

At What Age Should I Consider Creating a Will?

Most people understand there are benefits to having a will or living trust. It is an unfortunate fact, however, that close to 55% of all American adults are currently living without a will or any type of estate planning in place. This leaves their assets, property and the remainder of their estate subject to distribution under state law. If you want to have a say in how your assets and estate will be distributed to your children and heirs, then you need to create a will. If you don't want your beneficiaries to be left fighting to retain even the smallest portion of the estate you worked so hard to build, you need a will.

If you want to ensure your loved ones are adequately provided for after you are gone, then it is vital you waste no time in creating your will. Establishing a will or living trust does not have to be a time-consuming process. It is an important part of protecting those you love. A will is one of the most important documents all adults should have in place. With some assistance from a Los Angeles trust litigation lawyer, you will be able to make the process of creating your will a relatively painless experience. You may even find that sitting down to discuss and lay out the details of your will can present other issues which should be addressed.

While many people have come to the conclusion that they should wait until they are married or have children before creating a will, it is important that have a will in place throughout your adult life. Yes, there will probably be numerous changes as you get older and you may or may not amass additional property and assets along the way, but having a will in place serves to protect those assets in the event of your untimely death. A will can also help provide for burial and other related expenses so that your family and loved ones are not left struggling to cover the costs. Once your will has been established, it is recommended that you and your lawyer review the your will on a yearly basis.

To help you create your will and assist you with all of your trust and estate planning needs, it is recommended you contact the Law Offices of David A. Shapiro, P.C. 

Does All Property Go Through Probate?

Not all property will go through probate. Assets that are part of a person's "non-probate estate" can be distributed outside the probate process. Life insurance or retirement benefits such as IRA's, Keoghs, and 401(k) accounts transfer automatically to the beneficiaries. Bank accounts that have been named to beneficiaries and are set up as pay-on-death accounts (PODs), or "in trust for" accounts, also pass to the beneficiary without probate. Properties held in a joint tenancy, community property or living trust also pass to the beneficiaries without probate. Other assets may not need to go through probate, either.

In California, if the total value of the probate estate (assets that are subject to the authority of the probate court) is less than $150,000, beneficiaries can claim the assets with a simple sworn statement (affidavit) or use the state's "simplified procedures" for transferring property. The probate estate, on the other hand, consists of all types of property, both real and personal, that make up a person's estate. Tangible and intangible personal property, such as collectibles and stocks are probated in the state where one lives. Real estate property is probated where the property is located. Thus, if a person has real property in California and New York, then there will be two probates.

If you have any further questions about what would and wouldn’t be included in the probate process, please do not hesitate to contact the Law Offices of David A. Shapiro, P.C. 

Duties & Responsibilities of a Personal Representative

Upon the court's appointment, the personal representative becomes an officer of the court and takes on certain duties and responsibilities. These duties and responsibilities include managing the estate's assets. Estate assets must be managed with the care of a prudent person dealing with someone else's property. The prudent person rule requires that the fiduciary or the personal representative exercise discretion and average intelligence in making investment decisions.

Accordingly, the personal representative should be cautious about making risky or speculative investments and may be liable for losses obtained in such kind of investments. Estate assets must be kept separate and not commingled with anyone else's, including that of the personal representative. Bank accounts, securities and other assets must be held in a name that shows that they are estate property and should not be held under the name of the personal representative.

Estate accounts must earn interest and may be kept in insured accounts in financial institutions, except for checking accounts intended for ordinary administration expenses. The estate's money cannot be spent without the court's approval. However, reimbursements can be made for official court costs paid by the personal representative to the county clerk as well as for bond premium. Money taken out of the estate without the court's permission may result in the personal representative's removal and/or reimbursement to the estate from the personal representative's own personal funds.

To learn more about this area of law, visit my firm's official website.

What is Probate?

Probate is the legal process of administering an estate after someone dies. This process helps in the transfer of an estate in an orderly and supervised manner. If a person dies with a will, then the will determines how an estate is transferred during probate and to whom. If a person died without a will, then the laws where one lives specify who gets what parts of the estate. A state court or probate court oversees the probate process. The probate process may therefore vary from state to state. 

However, even with the differences, the basic probate process typically include the following:

• Proving a will's validity in court
• Notifying heirs, creditors, and the public of the decedent's death
• Identifying and inventorying the deceased person's property
• Having the property appraised
• Paying debts and taxes
• Distributing the remaining property to the beneficiaries as the will directs

Probate involves paperwork and court appearances by lawyers. The lawyers and court fees are typically paid from estate property. If you have further questions, do not hesitate to consult a Los Angeles probate attorney from my firm by visiting http://www.davidshapirolaw.com/.