What happens if I die without a Last Will and Testament?

"I made a Last Will and Testament 5 years ago, so I'm OK."

"I'm not married and don't have kids; I don't need a will."

"I don't need a will, it'll just go to my partner."

"My brother said he'd look after the kids."

The truth is, the last 4 statements are very, very wrong - even dangerous!  A Last Will and Testament is the foundational building block for your estate planning.  Yes, in the early days of your working life, where you have few assets (and hopefully little debt), a Last Will and Testament is less crucial.  As soon as that changes and you begin to accumulate assets, get married, have kids, or begin a business, a will, in one of the two forms, is imperative!

Depending on your circumstances, an attorney will recommend either a Will based estate plan, or a Trust based estate plan.  These are very different and you need specialized legal help to decide, then to execute, the correct one.  This is the livelihood of your loved ones who you leave behind that you're documenting for.  They deserve your best efforts.

Let's look at the 4 statements from earlier.  You made a will 5 years ago, so you're fine and dandy now, right?  Wrong!  Times change, laws change, your situation changes.  That's like saying, "I changed the oil in the car 5 years ago, it'll be fine now!"  A Last Will and Testament needs regular updating - a yearly look at it is recommended.

The single person with no dependants, why would they need one?  They may well still have assets that need distributing.  Their estate, regardless of size, will need someone to administer after their death.

It'll all go to my partner.  But which one?  Let's face it, a huge number of people have more than one long-term partner.  On your death, which partner do you want it to go to?  Probably the last one, right?  But what's to stop a former one trying to get some of the action?  Yes, they can still challenge a will, but that's harder than where a will wasn't executed.

And, finally, the faithful, helpful brother.  So very much is wrong with this scenario.  You die.  So where do the kids go now?  "To my brother, of course.  Just like we agreed."  But how can you tell the courts that when you're not around?  Without some legal instructions, how can the court be sure your brother is telling the truth?  Then an Aunt waltzes in, claiming the right to have them.  Then your sister, to whom you haven't said a civil word to in years.  What does the court do?  Well, it has the power to put your children in state care for up to 6 months while they sort it out.  Is that what you'd want for them?

Fact:      80% of Americans do not have a will (whether up-to-date, or obsolete).

Fact:      The American Bar Association (ABA) found that 50% of attorneys do not have a will.

Fact:      The state you live in doesn’t mind that you don’t have a will.  They don’t care about your family.

Fact:      If you have young children, you need a will to protect them from becoming wards of the court.

Fact:      You can finally afford real legal counsel in creating your will, and updating it annually.

The sad fact is, as you read this, the chances of you having a current, up-to-date will are frighteningly low!  But there is hope.  As part of the Family Protection plans offered by Pre-Paid Legal Services Inc, a will for you and your partner is now affordable.  Actually, better than affordable... it's free as part of the plan!  And it's free to update it every year.  There is no excuse anymore not to have a current Last Will and Testament.

Check out our page Wills - Last Will and Testament - what they mean to you and your family, then call us and get started right now.

There are some simple things you can do to protect yourself from financial identity theft.

1. When logging into your Internet banking, always do it by either typing in the URL yourself or use your bookmarks.  NEVER follow a link from a website or an email appearing in your inbox.  And always check that the URL starts with "https://" - the "s" stands for secure, meaning the connection is encrypted.

2. If you get an email in your inbox, claiming to be from your bank and they're either updating their records, their security, or you have had your account hacked, suspended or subject to an email hoax - BEWARE!  Mouse over the link to see the real URL. If the URL is not your bank's URL, delete it!  It's a phishing attempt to steal your information.  They'll usually include a link to follow that will take you to a fake site, but one that LOOKS legit.  If you mouse over that link, you'll generally see the real URL you'll be going to - it's almost never going to be the bank's URL.

3. The same applies for any other type of contact, letter, phone call, or fax, asking you to give them your private information.  Banks don't operate like that.  They'll ask you to visit a branch.

4. When you hand out your credit card, be vigilant.  If it disappears from sight, keep track of how long it's been gone.  If it's been too long, go looking for it.  If it's visible, watch it like a hawk.  And if the employee sees you, who cares?  If they're not dishonest, they'll just think you're paranoid (and you should be).  If they are a crook, they'll move on to easier pickings.

5. Shred any documents containing any private information on them before putting them in the garbage - especially ones with sensitive data like bank details, etc.

6. Pick sensible passwords.  Don't use your middle name, your birth date, or easy to think of ones like "password", "1234" or "abcd".  Laugh, but all those, and other equally stupid ones, are commonplace.  Aim for 8 characters, combine upper and lowercase, numbers and punctuation.  Yes it's a pain to remember them and type in a complicated one... but that's the point.  And change them regularly - every 3-4 months, or immediately if you suspect your security may have been compromised.

7. The big major banks are outsourcing transaction processing overseas, where precautions and regulations are sub par to the agreements that we think we have with them.  Even though it is a pain to switch, check out your local credit unions and give them your business instead.  Not only will you lessen your risk, but you'll be supporting local businesses.  A win-win!

8. But, best of all, get a bullet-proof, proactive 24/7 monitoring service.  There's far too much happening in our lives and in the life of the financial world for the man (or woman) in the street to keep up with it all.  Get a professional.  This is too important to play Russian Roulette with!

Who of us hasn't had a strange envelope appear in the mail, sometimes with the debt collection agency's name on the outside, sometimes not?  If you haven't, then you're lucky, but, for those of us that have, there's a sudden sinking feeling right in the middle of your stomach.  Your mind starts racing, wondering what's inside, and what it's all about.  Some folks will actually leave the envelope unopened for hours or even days!

Now maybe you really are behind on your debts.  Next week, we'll talk about how you approach that, because it's an entirely different ball game.  But, for now, we're going to look at what to do when you really have no clue why you're getting the letter.

1.  Don't panic Captain Mannering!

Sorry, that's probably way too obscure for non-English TV humor buffs, but it comes from a Corporal Jones on an old TV series called Dad's Army, set in WW2, about a bunch of guys in the Home Guard.  Cp. Jones would utter this on most shows when something went wrong, which it inevitably did!  But the cry should be the same the moment you see the ominous letter lurking in your mailbox... DON'T PANIC!!

America is a big country - 330 million odd people.  The chances of you having a totally unique name are pretty small - worse if your name is Johnson or Smith (the 2 most common American surnames).  So it could be a case of mistaken identity.  Whatever the reason, don't put your head in the sand - at any time.  Open it, and read it with care, and with a cool head.

2. Make a plan of action.

Don't file it to "fix it tomorrow", in other words.  If you don't have the time to do something with it right there and then, put it somewhere prominent so you don't forget it, and put an entry in your diary or calendar to JUST DO IT!!  One thing you can bet your life VERY safely on is that these guys won't go away.  Often, it's a company who's bought the debt.  They don't know you or your debt at all and, rest assured, they want their pound of flesh.

3. Take a letter Maria.

Yup, get out the pen and paper, or the desktop/laptop, and get writing.  Although the collectors are under no obligation (generally) to write back to you, it's really in their interests to do so.  They will want to know they're pursuing the right person and a legitimate debt.  If for no other reason than they want to mitigate getting sued for harassment. 

So what to write?  Start off by referring to their letter - even of you enclose a copy, which is a good idea.  If you've never heard of the debt or from them before, say so.  Ask them to provide the following:

The amount of the debt;
the name of the creditor to whom the debt is owed;
a verification or copy of any judgment (if applicable);
proof that they are licensed to collect debts in (insert the name of your state)

Also set out your rights, and what action you want and will take.  You can find a sample Initial Debt Dispute letter by following the link.  Note that laws are different from state to state and you should check before using this letter without altering it to ensure you are quoting correctly for your state.  But the basics hold true across the board.

4. Follow up.

Don't assume you're going to get an answer or that your "pseudo-attorney" letter will make them scurry for cover like frightened rabbits.  Give them 3-4 weeks, and then follow up by enclosing a copy of their letter and your initial one, asking why you haven't heard from them and what is happening.  Remember, at all times, to stay calm, focused and polite.  You'll get a lot further much faster.

5. No dice.

So they came back to you, with or without giving you the information you asked for, and still maintain that you're the debtor.  What now?  If you have Pre-paid legal, you wouldn't be in this spot now probably.  You could have had your provider-attorney send a letter back at step 2 (rather than yourself) and it's very likely it would have all gone away.  According to David Bloom of Evans, Lowenstein, Shimanovsky & Moscardini, Ltd, the pre-paid legal provider-attorney in Illinois, "One PPD member contacted our office about a debt he didn't think he owed. Under his Pre-Paid Legal Service plan, we drafted a letter to the attorney for the collection firm, requesting proof of the debt. They couldn't produce these documents and therefore they dropped the legal action," Bloom said. "In all too many instances, these debt buyers and their legal counsel are counting on uninformed consumers to simply pay up, whether the debt is authentic or not."

But, assuming you hadn't purchased a plan ahead of time (unfortunately getting one now will not get you a free letter), you can still go to an attorney, you can just pay the debt (and probably get your credit history pinged), or you can continue to fight.  Keep sending them letters, find some Internet sites that deal with these issues and post on them.  Talk to your local paper or TV station - especially if news is slow, they may jump on the chance!

If you find the debt is really yours, well there's not much more to say.  You're going to have to deal with it.  But watch for next week's entry on ways to cope with debts that are yours.

The big thing is to be proactive.  Keep onto them, and keep copies of everything.  If ever you end up in court, the judge will look favorably on you if you can produce all your evidence.  That's why you should NEVER do anything over the phone.

The other important thing is be proactive before the event.  For a very small monthly amount, you can help protect yourself by having a top attorney firm on your side, on retainer, to help you deal with these life event problems.  Also, they'll review documents and give advice for free on an unlimited number of topics.  And get a will done too.  Contact us to find out how.

Wow!  That's a mouthful, huh?  But, according to a recently released report by the Consumer Federation of America, the National Association of Consumer Agency Administrators and the North American Consumer Protection Investigators, this has been the #1 consumer complaint for 2007, 2008 and 2009.  Anyone taking bets on what might make #1 in 2010!!??  This one topic beat out credit complaints and construction.

I figure that pretty much everyone reading this would have bought at least one car in the past, maybe you're even thinking of changing right now.  Honestly, when you start shopping for a replacement car, find something you like and take it for a test drive, are you really thinking about what you're going to have to sign very soon?  No, we get caught up in the moment.  And car sales people know that (trust me, in a previous incarnation I was one!! I know how they work!) and use it, consciously or otherwise, to their advantage.  We're told that it's "...just the usual legal stuff..." when we ask what's in the pages and pages of fine print.  And we never read it, right?  The frightening bit is this.  Those pages of small print are just what will turn around and bite us if the handwritten bits are wrong or misleading.  Be afraid of the fine print, and be very afraid of the information handwritten in.

Most of the fine print is well tried and tested in law, and will, generally, say the same thing.  However, the parts that can change are on the front few pages.  The cash price, trade-in allowance, APR, term, etc.  Those are the items that can really kill us if we aren't aware of what they say or mean.  THEN the fine print denies us equality because we signed our rights away.  So, is there a better way?  Yes, and it's simple and easy and affordable.

The last car we bought we signed up for about 4-4.30pm.  We'd spent the day hunting - in fact 2-3 days - and we were tired.  The salesperson had told us it was a 4WD, which is a feature we requested.  As we were about to sign it turned out it was just a 2WD.  I don't think the sales person was being dishonest, just lazy and uninformed.  This is NOT uncommon.  We all "fake it" sometimes if we don't know the answer, rather than look stupid.  We ended up buying the car as we decided it wasn't a huge deal breaker. 

But what if it was something else that WAS crucial and we'd signed?  Unknowingly.  Sure we may have gotten recompense, but at what cost?  I had a business back in Auckland, New Zealand doing house plan design.  I did some work (without a contract - bad bad move!).  The people didn't pay and I sued them.  Although it was pretty clear they owed the money (and we all knew they did!) they dug their toes in.  From a $10k bill, I got $7k and paid about $14k to win it.  Is that a win, really?  Better I'd had a legal team behind me to begin with - a legal team that had drafted a solid contract.

The same goes for your car purchase scenario.  You could win a battle with the car yard, but end up being a loser.  What if, just as the car dealer says, "Just sign here and it's all yours!", you could reply, "Sure.  Right after my attorney looks it over."  Unheard of, right?  Who gets their attorney to look over a car purchase contract?  But, with pre-paid legal, that's exactly what you can do, and should do.  Never be in doubt of the terms, or of your rights or obligations, again.  Get expert legal advice before you sign, anytime, up to 10 pages, at no charge.  How many heartaches could that save you?  But not just you, your partner and kids too - all under one plan.  And this service covers any document or contract you need to sign.  And much, much more.

We all believe we must have car insurance, home insurance, health insurance.  Now you can get legal insurance too - and for $1000's less than health insurance!

One of the easiest ways you can protect yourself is by only carrying the items you need that day.  If you think about it, just by reducing the amount of personal identifying information you carry on your person, you can limit your potential exposure to identity theft in the event that your wallet or handbag is lost or stolen.  An added bonus is that you won't lose as much time notifying the card issuer for all of those companies represented  in your wallet's collection of cards and documents. 

It does mean you will have to plan ahead and know what you will require that day.  And it will take a minute or two to double check what is still there from yesterday.  But isn't it a good idea?

Here are some basic guidelines for what you should and should not carry on you.  Add and subtract items, based on your individual needs, and what you will require on a specific day.

These should be in your wallet or handbag:

1. Driver’s license (or some other form of state issued identification)
2. Automobile registration and proof of insurance, if required by your state law
3. One or two credit/debit cards for that day (don’t write PINs on the back or carry them with you)
4. Any other personal identification document you need, for that day only

These should be removed and kept in a secure place:

1. Passport
2. Social Security card
3. Any form of identification containing your Social Security number
4. Excess credit and debit cards
5. Checkbooks
6. Passwords or personal identification numbers (PINs)
7. Account numbers
8. Health insurance cards
9. Medicare or Medicaid cards
10. Frequent flyer cards
11. Car rental cards
12. Store loyalty cards
13. Any other personal identification document you don’t need that day

Most of us typically accumulate vast amounts of personal information in our wallets and handbags, without giving much thought to whether we need all of that.  Do some housecleaning in your wallet -- and while you are at it don't forget your car's jockey box!

"America's a big country with a lot of people.  It's really unlikely it'll ever happen to me!"  The frightening thing is it may already have happened, and you just don't know it!  Most people think of credit cards and bank accounts when they hear ID theft.  But that's not even the half of it!  The 2 biggest growth areas of identity theft are Medical ID Theft, and Driver's License ID Theft.  Then throw in character ID Theft and Social Security ID theft.  Alongside all of these,  financial ID theft starts to pale.

And it's not just for adults anymore.  Criminals are now targetting minors in their activities.  Why would they do that?  Because they know that the theft of a minor's character will remain undetected for years, possibly decades, if they get in soon enough.  In the meantime, they commit crimes in the minor's name, get multiple jobs, and rack up huge debts.  One minor had their identity stolen, and, when it was finally uncovered, was found to have 38 jobs!

One of the scariest forms of identity theft is Medical ID theft.  A criminal steals a person's medical identity and starts getting thousands of dollars worth of medical treatment on your ticket.  Plus they change all your records to become theirs - blood type, allergies, current medication, past illnesses.  When you turn up in ER, unconcious, who are medical staff to believe, but the records?  The results could be fatal!

But, of course, it couldn't happen to you, right?  After all, there are 300+ million people in America, and why would anyone care about you?  They care about you because you have an identity.  Period.  Last year, 10 million people had their identities stolen, and it's not going to get any better.  Crime pays.  You might be able to buy a fake (novelty) ID on the net for $100, but a real fake ID is going to set you back a lot more.  Your identity is valuable, and not just to you!

"But I have monitoring through my bank."  Excellent!  Will your bank tell you someone's been pinging your credit history?  What about when your ID is stolen (remember the 10 million people last year who thought it'd never happen to them either!)?  Will your bank's cover help you restore your identity?  Not likely!  They'll merely tell you, "Oh, your FINANCIAL identity has been compromised.  You better fix it!".  What you need is a comprehensive cover that watches every area of your identity, not just financial.  And you need a company behind it that has the muscle to work with you to RESTORE your identity (including your credit score) if it's compromised.  The time for putting your head in the sand over ID theft is gone.  You'd never dream of not insuring your house, your car, or your life.  You live in an age when your identity needs protection insurance too.