I have reviewed in recent columns some of the main questions that clients and others have asked me over the years. I have fielded nearly 30,000 questions during this time, counting those received on a popular radio public-service legal call-in show I hosted for 25 years, writing this column for nearly 16 years and conducting nearly 750 presentations to companies and other organizations.
As we often state: The best legal problems are the ones which never happen because you took routine and doable steps to avoid them.
Here are some additional tips to avoid many legal challenges:
- Warranties. This issue has been discussed before, but it bears repeating, as I regularly get questions about this. If you receive a warranty, it should be in writing. And the reputation of the seller is everything, because a core value of a reputable organization is to try to “make things right.”
But if you are purchasing a used item from an individual and it is not in writing, don’t count on it amounting to much. “He said/he said” disputes rarely work out.
- Designation of beneficiaries on certain assets. Many of the significant financial assets individuals own are not controlled by one’s will.
Individuals often do not remember whom they named as beneficiaries on their retirement account, or they neglect to change their beneficiary after they are divorced.The heirs are in for a real surprise when this occurs, to put it mildly. Sometimes no beneficiary is named at all, in which case on occasion a benefit can be forfeited outright.
Life insurance policies sometimes have no beneficiaries named, outdated beneficiaries (now-dead parents, for example) or no alternate beneficiaries. Some of the most contentious (and expensive) legal disputes many families face are when there is a failure of the decedent to properly name beneficiaries and alternate beneficiaries.
The cure for this? Generally, you can make a quick call to your insurance company/financial consultant/company beneficiary coordinator to check to see whom you have named as first and secondary beneficiaries.
And if a change is in order, the representative can send you the proper document to fill out and get the original of your signature to the representative. All of this should take 15 minutes or less to accomplish.
- How much do you have? A one-page summary of your asset values, which can be prepared in about 30 minutes, will tell you most of what you need to know. This will help you structure your estate planning to avoid some probate expenses in the future.
- Debt service. Many families carry more debt and expensive monthly payments than they should, whatever their level of assets. Your bank or credit union probably has an online form you can use to go through your monthly banking statements to see your “money in and money out” items.
Not only can you find efficient ways to reduce the cost of debt service, you can likely find a path to making a regular, if modest, contribution to your tax-efficient retirement plan, which your employer may even match dollar for dollar.
If you feel you or your family would benefit from some budgeting advice to help you manage your money (this includes most families, by the way), set up a strictly confidential session with Financial Pathways of the Piedmont, a United Way agency you and your company likely support through your contribution to the United Way.
It’s located at Suite 100, 7820 North Point Blvd. in Winston-Salem, near the intersection of Silas Creek and University parkways. (336-896-1191; www.financialpaths.org). Among other things, you can learn a lot about ways to manage your money better, which can avoid more serious financial and possible legal issues.
Remember: An informed choice is a smart choice.
This article was originally posted by the Winston-Salem Journal. To read the original article, click here.