@1 0 What You Should Know About Your LAST WILL AND TESTAMENT If you are over the age of 18, you should prepare a Last Will and Testament. A will is important whether or not you have children, or whether or not you own property. A will helps protect those you care about. It spells out your wishes so that your family members don't have to try to make decisions they feel uncomfortable with. It will save them the added grief at a time when they need it the least. Generally, any person who is over the age of 18 (19 in Wyoming) and who is of sound mind can make a valid will. A person is considered of sound mind if he or she knows the nature of the property owned, the consequences of disposing of that property, and makes the will voluntarily and free of any undue influence or duress imposed by someone else. Your Last Will and Testament contains your instructions regarding the disposition of your property after your death. If you die without leaving a will, the laws of your state will determine what happens to your property. If you are married with children, your surviving spouse will receive one-third to one-half of your property. Your children will receive the rest. If you are married but have no children, your surviving spouse will receive anywhere from one-third of your estate to all of your estate, depending on state law. In states where your surviving spouse receives less than your entire estate, the other portion is divided among your surviving parents, brothers and sisters, and their descendants. If you have no spouse or children who survive you, other relatives will divide the property you leave behind. Home Lawyer's Last Will and Testament lets you write a simple will. You may leave up to six specific gifts of property to anyone you choose. If you are married, the rest of your property (called your residuary estate) goes to your spouse. Because state laws protect the spouse from being disinherited, you cannot use the Home Lawyer Will if you want to leave nothing to your spouse when you die. Consult with an attorney for information about the law in your state. Keep in mind that certain kinds of property cannot be disposed of in a will. For example, property owned as "Joint Tenants with Right of Survivorship," automatically goes to the other joint tenant when you die. Life insurance and pension benefits usually go to someone you name as a beneficiary in your insurance policy or pension documents. Because Home Lawyer's Last Will and Testament is designed to be a simple will, you should not use it if your net estate (the value of what you own minus any debts you owe) exceeds $600,000. Because of certain requirements in Louisiana state law, this Will is not valid in Louisiana. Contact an attorney to help you prepare a will if you live in Louisiana. In order for your Last Will and Testament to be valid it must be properly executed. Information on executing your Will can be found in the Home Lawyer Reference Manual. Instructions on executing your Will print automatically when you print your completed Last Will and Testament. @2 0 What You Should Know About Your LAST WILL AND TESTAMENT If you are over the age of 18, you should prepare a Last Will and Testament. A will is important whether or not you have children, or whether or not you own property. A will helps protect those you care about. It spells out your wishes so that your family members don't have to try to make decisions they feel uncomfortable with. It will save them the added grief at a time when they need it the least. Generally, any person who is over the age of 18 (19 in Wyoming) and who is of sound mind can make a valid will. A person is considered of sound mind if he or she knows the nature of the property owned, the consequences of disposing of that property, and makes the will voluntarily and free of any undue influence or duress imposed by someone else. Your Last Will and Testament contains your instructions regarding the disposition of your property after your death. If you die without leaving a will, the laws of your state will determine what happens to your property. Home Lawyer's Last Will and Testament lets you write a simple will. You may leave up to six specific gifts of property to anyone you choose. Keep in mind that certain kinds of property cannot be disposed of in a will. For example, property owned as "Joint Tenants with Right of Survivorship," automatically goes to the other joint tenant when you die. Life insurance and pension benefits usually go to someone you name as a beneficiary in your insurance policy or pension documents. Because Home Lawyer's Last Will and Testament is designed to be a simple will, you should not use it if your net estate (the value of what you own minus any debts you owe) exceeds $600,000. Because of certain requirements in Louisiana state law, this Will is not valid in Louisiana. Contact an attorney to help you prepare a will if you live in Louisiana. In order for your Last Will and Testament to be valid it must be properly executed. Information on executing your Will can be found in the Home Lawyer Reference Manual. Instructions on executing your Will print automatically when you print your completed Last Will and Testament. @3 0 What You Should Know About THE GENERAL POWER OF ATTORNEY Home Lawyer's General Power of Attorney allows one person (the Principal) to give very broad powers to another person (the Attorney-in-fact) to act on the Principal's behalf. With a General Power of Attorney, you can give another person the power to do anything on your behalf that you could do yourself - for example, sell and buy real estate or other property, open bank accounts or stock brokerage accounts, operate your business, use your credit, and so on. Generally, you can name anyone you know and trust to be your Attorney-in-fact, provided that he or she is of sound mind and legal age. Your spouse, an accountant, a real estate broker, a friend or relative, even a lawyer can serve as your Attorney-in- fact. If you want your Attorney-in-fact to be able to continue to act as your agent in the event you become mentally incapacitated, you should select the Durable Power of Attorney option. Otherwise, your Attorney-in-fact's authorization to act on your behalf will expire when you become mentally incapacitated. When to use a General Power of Attorney? When you'll be out of the country for an extended period of time and need someone to pay your bills and collect your income; or whenever you need someone to act on your behalf in a variety of ways. Even though a Power of Attorney can remain in effect almost indefinitely (unless you name an expiration date, only the death of the Principal or a Revocation will terminate a Durable Power of Attorney), some experts suggest you renew the Power of Attorney annually, so there's no doubt that it continues in effect. In many states, you will need to record the Power of Attorney in a government office. You should record any Power of Attorney that deals with real property in the office where deeds are recorded. Your state may have other recording requirements as well. You can contact your county law librarian or an attorney for the specific requirements in your state. If you only want your Attorney-in-fact to act in a limited way on your behalf, or if you want your Attorney-in-fact to authorize medical treatment for your minor children, do not use the General Power of Attorney. Use Home Lawyer's Medical/Special Power of Attorney instead. @4 0 What You Should Know About THE MEDICAL/SPECIAL POWER OF ATTORNEY This document allows you (the Principal) to give another (the Attorney-in-fact) specific limited powers regarding your personal affairs and property. It may be used to authorize medical care and treatment for your minor children; to authorize the sale or transfer of real estate on your behalf; or to provide for the sale of items of your personal property. Generally, you can name anyone you know and trust to be your Attorney-in-fact, provided that he or she is of sound mind and legal age. Your spouse, an accountant, a real estate broker, a friend or relative, even a lawyer can serve as your Attorney-in- fact. The Medical Power of Attorney can be a real lifesaver. Parents who leave their children in the care of others when they are unable to be reached (on vacation or out of town on business) should have a Medical Power of Attorney prepared before each trip. A client, whose nephew was in his care while the parents were away, was faced with a scary example of how important this document can be. His toddler nephew was reaching for a pair of scissors on a shelf. The scissors fell and lodged deep in the child's leg. Our client rushed the child to the nearby emergency room. The nurse asked for the child's name and our client's name. When the nurse realized that the adult bringing in the child was not the parent, the nurse requested a "Medical Power of Attorney". "What's that?" our client replied. He was then informed that the hospital could not provide medical attention without the consent of the child's guardian (the parent) or written authority contained in a Medical Power of Attorney. The lesson learned here is that no one but the parent can authorize medical (even emergency) treatment for your child. The document you prepare using HOME LAWYER will protect your children in the event of this kind of emergency. If you want your Attorney-in-fact to sell, convey, or buy real estate, be sure to enter an accurate description of the real estate. You can copy this information from the deed on the property. Failure to enter an accurate description may prevent your Attorney-in-fact from acting on your behalf, or cause unnecessary delay. Home Lawyer's Medical/Special Power of Attorney automatically expires three months after the date of its execution unless you specify an earlier expiration date. You will need to complete and execute a new Power of Attorney if you want the Attorney-in-fact to continue to act on your behalf. If you want your Attorney-in-fact to continue to act on your behalf in the event you become mentally incapacitated before the three-month period expires, you should select the Durable Power of Attorney option. You should record any Power of Attorney that deals with real property in the office where deeds are recorded. Your state may have other recording requirements as well. You can contact your county law librarian or an attorney for the specific requirements in your state. If you want to give your Attorney-in-fact broad powers to act on your behalf, you should use Home Lawyer's General Power of Attorney. @5 0 What You Should Know About THE REVOCATION OF POWER OF ATTORNEY Home Lawyer's Revocation of Power of Attorney is used by one person (the Principal) to revoke the power previously given to another (the Attorney-in-fact). A Revocation may be necessary for a variety of reasons - the Principal wants to appoint a new Attorney-in-fact, the Attorney-in-fact cannot continue to serve, or the relationship between the parties may have changed significantly. Whatever the reason, certain steps should be taken to help ensure that the Revocation takes effect. If the Power of Attorney being revoked was recorded in any government office, the Revocation should also be recorded in the same office. A copy of the Revocation should be sent to the Attorney-in-fact by certified mail, return receipt requested. The receipt will help serve as proof in the unlikely event the Attorney-in-fact tries to act on your behalf after the revocation takes place. If possible, you should also hand deliver a copy to the Attorney-in-fact. If you know the identities of other parties the Attorney-in- fact has dealt with on your behalf, you should also mail copies of the Revocation to them. This will serve as notice to them that the Attorney-in-fact is no longer your representative, and that you will not be bound by his or her actions. @6 0 What You Should Know About THE RESIDENTIAL LEASE AGREEMENT The Residential Lease Agreement can be used if you are renting part or all of your house, or if you own a duplex or an apartment complex. Our clients often ask, "Do I need a lease?" Whether you are the one renting an apartment or house (the Tenant) or own rental property (the Landlord), a written lease is recommended. As a Landlord you expect to receive the agreed upon amount of rent by a specific date each month. If your money doesn't arrive as promised, you might call or write the Tenant asking for your rental payment. If your Tenant fails to respond and days pass, Landlords have legal rights to recover the apartment and collect their money. This may require an eviction action (going to court). The written residential lease is very helpful in determining the rights of both parties involved in a rental situation. Without the lease, the Landlord and Tenant may dispute what was said and agreed to when the apartment was first rented. Home Lawyer's Residential Lease Agreement allows a Landlord to rent a house or apartment to a Tenant for a specified period of time. Most residential leases run for a period of six months or one year. We recommend that you use this Agreement for leases no longer than one year in duration. Before signing this or any other residential lease agreement, both the Landlord and Tenant should take several steps to minimize any problems that could arise later on. The Landlord should be sure that the property is in reasonably safe and sanitary condition. In many communities, the law requires that any rental property be equipped with deadbolt locks, smoke detectors and fire extinguishers. You can obtain information about the requirements in your locale by contacting your community housing authority or codes enforcement agency. If the property is being rented for the first time, the Landlord should also contact the insurance company that carries the policy on the property to determine whether any changes in coverage will be necessary. Before signing the Residential Lease Agreement, the Landlord and Tenant should conduct an inspection of the premises, and note in writing any defects or damage, such as torn wallpaper, defective light switches or electrical outlets, broken windows, and so on. Both the Landlord and Tenant should sign and date the inspection report. Doing so will help to protect the Tenant from any later claim that the damage was caused by the Tenant. The Tenant should also obtain insurance on his or her personal property, as the Landlord will not be responsible for any damage or loss the Tenant suffers. The Landlord and Tenant should both receive a signed original of the Residential Lease Agreement. @7 0 What You Should Know About PROMISSORY NOTES "Neither a Lender or Borrower Be" goes the old saying. But in today's credit-driven society, the ability to borrow money is valuable. As a Lender, a promissory note provides protection against questions that may later arise over the amount of money loaned, whether or not interest is being charged, and when amounts are to be repaid. In the event the person who has borrowed money dies prior to repayment, a promissory note can be presented to the executor of the estate to receive payment even after his or her death. Clearly stating all the terms regarding interest and repayment is equally important to the Borrower. If the Borrower repays part of the debt, the note will protect him or her for any unearned interest that the Lender may claim is due. Home Lawyer's Promissory Note obligates one party (the Maker) to pay money to another (the Payee). A Promissory Note is used when the Payee has loaned money or something else of value to the Maker and repayment is to be made according to specified terms. For example, you have a good friend or relative who has asked you to help him out financially. It would be a good idea for both parties involved to have the repayment plan spelled out in writing. Home Lawyer's Promissory Note provides several repayment options, including no-interest payment and payment on demand. Choose the one that best serves the needs of the parties. A Promissory Note that requires the payment of interest must comply with the usury laws in the state where it is made. Usury laws establish a maximum interest rate that may be charged. A Promissory Note that charges an excessive rate of interest may be found null and void. You can contact your county law librarian or an attorney for information about the usury laws in your state. Keep in mind that Home Lawyer's Promissory Note creates an unsecured debt. If the Maker of the Note defaults, the Payee will have to obtain a court judgment in order to collect the unpaid amount due. If the Maker files bankruptcy, the Payee may be unable to enforce the Note. There are other kinds of documents (called security agreements) that can provide additional protection to the Payee. An attorney can help you prepare and file a security agreement if you think you need one. @8 0 What You Should Know About THE EMPLOYMENT AGREEMENT Home Lawyer's Employment Agreement is a contract between a business and an individual who will serve as an employee of the business. Terms included in the Employment Agreement cover issues such as salary, bonuses, expenses and fringe benefits. Provision can also be made for sick leave and vacation time. An Employment Agreement can be helpful for both the employer and employee, and eliminate confusion about the responsibilities each has toward the other. Unless an employee has a written agreement, the employee is usually considered an "employee at will," and can be terminated for any reason or no reason at all. Every state has laws regarding the relationship between employers and employees. In addition, the Federal Department of Labor is authorized to enforce federal laws regarding wages, hours, and other employment issues. Home Lawyer's Employment Agreement contains a provision which permits the remainder of the contract to remain in effect in the event one or more provisions are invalid because of any law. Laws governing the relationship of employers and their employees vary widely, and are subject to different interpretations. If you have any questions regarding the provisions of Home Lawyer's Employment Agreement as they apply in your state, we recommend that you consult with an attorney before signing the agreement. Your state or local bar association can provide you with a referral to an attorney who can assist you. @9 0 What You Should Know About THE INDEPENDENT CONTRACTOR AGREEMENT Home Lawyer's Independent Contractor Agreement is a contract between a business (or individual) and an individual who will serve as an independent contractor or consultant. An independent contractor can include someone you have hired to build a fence or add a deck to your home. For small businesses, it can be used for someone such as a computer programmer. An independent contractor is not an employee of the business he or she serves. As a result, the independent contractor is not entitled to any of the employee benefits the business may provide, and the independent contractor is responsible for paying any income taxes, workers' compensation, unemployment insurance, and social security taxes that may result from his or her work. On the positive side, the independent contractor is not subject to the control of the business in matters such as where or when work should be performed. Home Lawyer's Independent Contractor Agreement gives the parties wide latitude in describing the consultant's duties. As a result, it is important to be as specific as possible in detailing the nature of the work to be done. Because state laws regarding independent contractors vary and are subject to different interpretations, if any provision of Home Lawyer's Independent Contractor Agreement is found to be invalid, the remainder of the agreement remains in effect. If either the business or the consultant is unsure of any of the provisions of the Independent Contractor Agreement, we recommend consulting with an attorney before signing the agreement. Your state or local bar association can provide you with a referral to an attorney who can assist you. @10 0 What You Should Know About THE BILL OF SALE FOR MOTOR VEHICLE Home Lawyer's Bill of Sale for Motor Vehicle is used to transfer ownership of a motor vehicle from one person to another person. A motor vehicle can be an automobile, truck, motorcycle, motor home, boat or trailer. If the seller has a title issued by the state which describes the item as a motor vehicle, use this form to transfer ownership. Many of the cases that go to court over used cars involve problems that arise weeks or months after the buyer has owned the car. The buyer may discover defects with the car's mechanical systems (engine, brakes, air conditioning, etc.) or problems with its physical condition (rusting body panels, worn muffler or exhaust). In either situation, the seller is best protected when a bill of sale is prepared clearly stating that the automobile is sold in an "as is" condition. This means that the buyer accepts the vehicle with no warranty from the seller about the condition of the vehicle. The Bill of Sale should only be given to the buyer upon receipt of payment in full. Giving the Bill of Sale before receiving full payment can lead to problems in the future. The Bill of Sale helps the buyer obtain insurance for the vehicle. It also helps prove ownership in the event the buyer decides to resell the vehicle later on. The Bill of Sale for Motor Vehicle also contains an odometer statement. At the time of sale, check the appropriate box regarding vehicle mileage. The Bill of Sale for Motor Vehicle should be signed in the presence of a notary public. A number of states also require that the certificate of title for the motor vehicle be signed and notarized as well. You can contact your county law librarian or an attorney for information about the law in your state. Free or low cost notary service is available at many banks and financial institutions. Check with your bank to see if a notary is available. @11 0 What You Should Know About THE GENERAL BILL OF SALE Home Lawyer's General Bill of Sale allows one person to transfer ownership of an item of personal property to another. Personal property is anything a person owns other than real estate. The seller should only give a General Bill of Sale to the buyer upon receipt of payment in full from the buyer. Obviously, you won't need to provide a Bill of Sale for every item of personal property. You should use the General Bill of Sale, however, for larger items, such as stereo or video equipment, and expensive items, such as jewelry and antiques. The General Bill of Sale protects the seller from future claims of misrepresentation regarding the item sold. Home Lawyer's General Bill of Sale notes that the item described is sold "as is." This means that the buyer accepts the item from the seller with no warranty as to the condition of the item. A Bill of Sale is also helpful for the buyer's use in obtaining insurance on expensive items. It also helps prove ownership of the item in the event the buyer decides to resell the item later on. Some states require a notarized Bill of Sale for certain items, such as firearms. You can contact your county law librarian or an attorney for information about the law in your state. Home Lawyer's General Bill of Sale includes a notary statement. Even if it's not required, it won't hurt to use a notary statement for any item you sell. Free or low cost notary service is available at many banks or other financial institutions. Check with your bank to see if a notary is available. @12 0 What You Should Know About OFFER OF EMPLOYMENT The Offer of Employment allows you to specify the position being offered, an annual salary, a starting date and other details of the position being offered. You should note that once the offer is accepted, this letter could be viewed as a legally binding agreement between the employer and the new employee. If you want a more detailed description of the employment arrangement, you should use Home Lawyer's Employment Agreement in addition to this letter. @13 0 What You Should Know About THE DEMAND LETTER FOR MONEY OWED The Demand Letter for Money Owed should be used as a final request for payment of a legitimate debt owed to you. It allows the debtor to make payment in thirty days or face additional collection measures. If the debt remains unpaid after the expiration of the thirty-day period, you may wish to pursue a variety of collection options, including turning the debt over to a collection agency, filing a lawsuit, or beginning an action in small claims court. Because the laws vary from state to state, we suggest you consult with an attorney regarding the options available in your state. Your state or local bar association can provide a referral to an attorney who can help you. If someone has written an NSF check, you may want to first notify that person using the Bad Check Notice. Keep in mind that this letter is intended for the collection of personal debts ONLY, and should not be used in a commercial setting, or to collect money owed to someone else. Federal and state laws strictly regulate commercial collection practices. @14 0 What You Should Know About THE BAD CHECK NOTICE The Bad Check Notice should be used when a check you have received is returned by the bank for insufficient funds. It notifies the person who gave you the check that the check has been returned and that you will expect payment in cash or with a money order. As with the Demand Letter for Money Owed, this letter is intended for use in a non-commercial situation. You should not use this letter to collect on a check made to your business, or to collect for a check made to someone else. Federal and state laws strictly regulate commercial collection practices. @15 0 What You Should Know About THE DEFECTIVE PRODUCT COMPLAINT LETTER The Defective Product Complaint Letter allows you to notify a retailer or manufacturer of a defect in an item you have purchased. Although you can use it as a first notice of the problem you've encountered, there are other steps you might want to take before using this letter. Your first step might be to simply return the item to the place where it was purchased. Many retailers will exchange the item with little or no discussion. If that proves impossible, this letter allows you to specify the nature of the defect and the solution you expect. In the event that you are still unable to obtain satisfaction, several steps may be available to you, including a complaint to the Better Business Bureau, a small claims court action, or a lawsuit. You should consult with an attorney about the options available under your state's laws. Your state or local bar association can provide you with a referral to an attorney who can help you. @16 0 What You Should Know About THE REQUEST FOR CREDIT REPORT The Request for Credit Report directs a local credit bureau to provide you with a copy of the information contained in your records at the bureau. A number of studies show that many credit bureau records contain inaccurate information. You should request a credit report periodically to review the information it contains and correct any inaccurate or incomplete information. You may also want to review your credit record before you apply for credit, as inaccurate information could result in a credit refusal. Most credit bureaus charge a fee of $5 or $10 for providing a report. However, if you have been refused credit in the last thirty days, you may obtain a copy of the report free of charge. The company that refuses to extend credit to you must tell you the name of the credit bureau it used in making its decision.