LegalLife™ Checkup Part 17. - Definitions – Terms and Explanations
Definitions – Terms and Explanations Living Will - A Living Will is a document that allows a person to explain in writing which medical treatment he or she does or does not want during a terminal illness. A terminal illness is a fatal illness that leads ultimately to death. A Living Will takes effect only when the patient is incapacitated and can no longer express his or her wishes. The will states which medical treatments may be used and which may not be used to die naturally and without the patient’s life being artificially prolonged by various medical procedures. The purpose of a living will is to allow you to make decisions about life support and direct others to implement your desires in that regard. Will - A Will is a legal document that is used to give detailed written instructions for how you want your property to be distributed upon your death. It also allows you to name an executor who will administer your estate and see that all the provisions and stipulations of your last wishes are carried out in an orderly fashion. Generally, for a will to be valid, you must sign it in the presence of at least two witnesses who can attest to your signature. Joint Tenants - Joint tenancy is a form of ownership by two or more individuals together. It differs from other types of co-ownership in that the surviving joint tenant immediately becomes the owner of the whole property upon the death of the other joint tenant. This is called a "right of survivorship." Generally, for transfers to two or more persons who are not husband and wife, the deed or conveyance must expressly state an intention to create a joint tenancy by noting that the property will be held not as tenants in common but as joint tenants with rights of survivorship. Joint tenancy property passes outside of probate, however, it may be severed so that the property becomes part of one person's estate and passes to that person's heirs. Tenants in Common - Tenants in common hold title to real or personal property so that each has an "undivided interest" in the property and all have an equal right to use the property. Tenants in common each own a portion of the property, which may be unequal, but have the right to possess the entire property. There is no "right of survivorship" if one of the tenants in common dies, and each interest may be separately sold, mortgaged or willed to another. A tenancy in common interest is distinguished from a joint tenancy interest, which passes automatically to the survivor. Upon the death of a tenant in common there must be a court supervised administration of the estate of the deceased to transfer the interest in the tenancy in common. Community Property - Community property refers to the system in some states for dividing a married couple's property in a divorce or upon the death of one spouse. In this system, everything a husband and wife acquire once they are married is owned equally (fifty-fifty) by both of them, regardless of who provided the money to purchase the asset or whose name the asset is held in, with the exception of inheritances, specific gifts to one of the spouses, and property and profits clearly traceable to property owned before marriage, all of which is separate property.
-1– U.S. Legal Forms, Inc. - http://www.uslegalforms.com
Power of Attorney - A power of attorney is an instrument containing an authorization for one to act as the agent of the principal that terminates at some point in the future either by its terms or by operation of law such as death of the principal or agent. They are also called letters of attorney. The person appointed is usually called an Attorney-in-Fact. A General Power of Attorney is a legal document which gives the person you choose (the agent) the power to manage your assets and financial affairs while you are alive. The document must be signed by you (the principal) while you have the required legal capacity to give your agent clear and concise instructions. The appointment may be for a fixed period and can be revoked by you at any time providing you still have the legal capacity to do so. A power of attorney ceases when you die. The executor named in your will then takes over the responsibilities of your estate. A "durable" power of attorney stays valid even if you become unable to handle your own affairs (incapacitated). If you don't specify that you want your power of attorney to be durable, it will automatically end if you later become incapacitated. A limited power of attorney allows the principal to give only specific powers to the agent. The limited power of attorney is used to allow the agent to handle specific matters when the principal is unavailable or unable to do so. Liability - Liability is generally a term that refers to a debt or obligation. In a financial sense, it refers to an organization’s or person's debts and other financial obligations. Guaranty - A guaranty is a contract under which one person agrees to pay a debt or perform a duty if the other person who is bound to pay the debt or perform the duty fails to do so. Usually, the party receiving the guaranty will first try to collect or obtain performance from the debtor before trying to collect from the one making the guaranty (guarantor). Surety - A surety is a person obligated by a contract under which one person agrees to pay a debt or perform a duty if the other person who is bound to pay the debt or perform the duty fails to do so. Usually, the party receiving the surety's performance will first try to collect or obtain performance from the debtor before trying to collect from the surety. A surety is often found, for example, when someone is required to post a bond to secure a promise. Option - An option is a contract to purchase the right for a certain time, by election, to purchase property at a stated price. An option may be a right to purchase property or require another to perform upon agreed-upon terms. By purchasing an option, a person is paying for the opportunity to elect or "exercise" the right for the property to be purchased or the performance of the other party to be required. "Exercise" of an option normally requires notice and payment of the contract price. The option will state when it must be exercised, and if not exercised within that time, it expires. If the option is not exercised, the amount paid for the option is not refundable. Sometimes an option is the right to renew a contract, such as a lease, broadcasting a television series, the employment of an actor or athlete, or some other existing business relationship. A "lease-option" contract provides for a lease of property with the right to purchase the property during or upon expiration of the lease. Successor - A successor is a person or entity who takes over and continues the role or position of another. For example, in trust law, many grantors and their respective spouses act as the initial trustees of a revocable living trust. In this situation, they remain in control until they are incapacitated or die. Then pre-selected successor trustees are appointed in under the terms of the declaration of trust. Usually a spouse, family member or trusted friend is selected as successor trustee. A second successor is a person nominated to take over responsibilities of the first successor in the case of death or disability of the first successor.
-2– U.S. Legal Forms, Inc. - http://www.uslegalforms.com
Homestead - Homestead laws are primarily governed by state laws, which vary by state. They may deal with such matters as the ability of creditors to attach a person's home, the amount of real estate taxes owed on the home, or the ability of the homeowner to mortgage or devise the home under a will, among other issues. A homestead waiver is a document wherein the homeowner of spouse of a homeowner gives up the statutory homestead rights under applicable state law, often required in certain contracts, such as mortgages. A bank often includes a homestead waiver in a mortgage so that they can recoup their losses up to the full loan amount in case of foreclosure, rather than having part of the property exempt from the claims of creditors under a homestead exemption.
-3– U.S. Legal Forms, Inc. - http://www.uslegalforms.com