| WHAT DOES A WILL DO?The simplest way to
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| | subscriptions, etc.; and--Distributing
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| ensure that your funds, property and
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| | assets according to the will.WHAT ABOUT
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| personal effects will be distributed
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| | UPDATING MY WILL?You'll probably need to
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| after your death according to your wishes
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| | update your will several times during the
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| is to prepare a will. A will is a legal
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| | course of your life. For example, a
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| document designating the transfer of your
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| | change in marital status, the birth of a
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| property and assets after you die.
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| | child or a move to a new state should all
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| Usually, wills can be written by any
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| | prompt a review of your will. You can
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| person over the age of 18 who is mentally
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| | update your will by amending it by way of
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| capable, commonly stated as "being of
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| | a Codicil or by drawing up a new one.
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| sound mind and body."WHO NEEDS A
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| | Generally, people choose to issue a new
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| WILL?Although wills are simple to create,
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| | will that supersedes the old document. Be
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| about half of all Americans die without
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| | sure to destroy the old will after you
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| one (or Intestate). Without a will to
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| | sign a new one.WHAT ABOUT ESTATE
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| indicate your wishes, the court steps in
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| | TAXES?The property included in your will
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| and distributes your property according
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| | may be subject to taxation. In planning
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| to the laws of your state. Wills are not
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| | your will, take into account the
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| just for the rich; the amount of property
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| | following:---Federal estate taxes will
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| you have is irrelevant. A will ensures
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| | generally be due if the net taxable
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| that what assets you do have will be
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| | estate is worth more than $1,000,000.
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| given to family members or other
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| | This amount is scheduled to gradually
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| beneficiaries you designate. If you have
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| | increase from $1,000,000 in 2002/2003 to
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| no apparent heirs and die without a will,
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| | $3,500,000 in 2009 so that it will
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| it's even possible the state may claim
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| | eventually shield $3,500,000 in gift or
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| your estate.Having a will is especially
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| | estate transfers from tax per taxpayer.
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| important if you have young children
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| | Estates in excess of the exempt amount
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| because it gives you the opportunity to
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| | can be taxed at a rate from 37% to 50%
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| designate a guardian for them in the
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| | (the top percentage is scheduled to
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| event of your death. Without a will, the
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| | gradually decrease to 45% in 2009). Also,
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| court will appoint a guardian for your
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| | note that these estate tax changes are
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| children who may be someone you do not
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| | scheduled to be repealed in 2010. If not
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| even know.WHAT ARE THE ELEMENTS OF A
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| | extended, the tax law will revert to the
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| WILL?What you generally need to make a
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| | estate and gift tax provisions in affect
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| will:1) Your name and place of
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| | in 2001. Consult a tax or financial
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| residence;2) Names and addresses of
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| | professional to determine a plan that is
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| spouse, children and other beneficiaries,
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| | right for you and your family.---State
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| such as charities or friends;3) Alternate
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| | death or inheritance taxes---Federal
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| beneficiaries, in the event a beneficiary
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| | income taxes---State income taxesYou may
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| dies before you do;4) Name and address of
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| | be able to minimize your estate tax by
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| an Executor/ Executrix to manage your
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| | establishing a trust or giving gifts
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| estate;5) Name and address of an
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| | during your lifetime. You can also cover
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| alternative Executor/Executrix, in the
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| | the cost of estate taxes by purchasing a
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| event your first choice is unable or
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| | life insurance policy intended to pay
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| unwilling to act;6) Name and address of a
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| | taxes. Talk to your life insurance agent
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| guardian for your minor children;7) Name
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| | to find out more about how this
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| and address of an alternative guardian,
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| | works.WHERE SHOULD I KEEP MY WILL?Once
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| in the event your first choice is unable
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| | your will is written, store it in a safe
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| or unwilling to act;8) The age you wish
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| | place that is accessible to others after
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| your minor children to have control of
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| | your death. I suggest that you keep it
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| their inheritance;9) Any burial requests
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| | in a fire proof box that you can purchase
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| you may have (cremation, where you want
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| | at any office supply store. I do not
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| to be buried, etc.);10) Your
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| | suggest that you keep your will in a safe
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| signature;11) Two Witnesses' signatures;
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| | deposit box because many states will seal
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| and12) Notarization.Two of the most
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| | your safe deposit box upon your death.
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| important items included in your will are
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| | Make sure a close friend or relative
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| naming a guardian for minor children and
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| | knows where to find your will.WHAT IS A
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| naming an Executor/ Executrix.WHAT IS A
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| | LIVING WILL?A living will is not a part
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| GUARDIAN?In most cases, a surviving
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| | of your will. It is a separate document
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| parent assumes the role of sole guardian.
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| | that lets your family members know what
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| However, it's important to name a
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| | type of care you do or don't want to
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| guardian for minor children in your will
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| | receive should you become terminally ill
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| in case neither you nor your spouse is
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| | or permanently unconscious. It becomes
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| able and willing to act. The guardian you
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| | effective only when you cannot express
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| choose should be over 18 and willing to
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| | your wishes yourself. Discuss your
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| assume the responsibility. Talk to the
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| | wishes as reflected in your living will
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| person ahead of time about what you are
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| | with family members, and be sure all your
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| asking. You can name a couple as
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| | doctors have a signed copy.WHAT IS A
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| co-guardians, but that may not be
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| | POWER OF ATTORNEY FOR HEALTH CARE (HEALTH
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| advisable. It's always possible the
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| | CARE PROXY)?A power of attorney for
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| guardians may choose to go their separate
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| | health care (health care proxy) is not a
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| ways at some later date, and, if so, a
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| | part of your will. It is a separate
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| custody battle could ensue. If you do not
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| | document that authorizes someone you name
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| name a guardian to care for your
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| | to act in accordance with your medical
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| children, a judge will appoint one, and
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| | intentions. It becomes effective only
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| it may not be someone you would have
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| | when you cannot express your wishes
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| chosen.WHAT IS A EXECUTOR/EXECUTRIX AND
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| | yourself. You should make sure that all
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| WHAT DO THEY DO?An Executor/Executrix is
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| | your doctors have a signed copy.WHAT IS A
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| the person who oversees the distribution
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| | FINANCIAL DURABLE POWER OF ATTORNEY?A
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| of your assets in accordance with your
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| | financial durable power of attorney is
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| will. Most people choose their spouse, an
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| | not a part of your will. It is a separate
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| adult child, a relative, or a friend to
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| | document that authorizes someone you name
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| fulfill this duty.If no Executor
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| | to act in accordance with your financial
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| Executrix is named in a will, a Probate
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| | intentions. It becomes effective only
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| Judge will appoint one. Probate refers to
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| | when you cannot express your wishes
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| the legal procedure for the orderly
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| | yourself. You should make sure that all
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| distribution of property in a person's
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| | your financial professionals
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| estate. The Executor/Executrix files the
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| | (stockbrokers, accountants, financial
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| will in probate court, where a Judge
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| | planners) and banks have a signed
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| decides if the will is valid. If it is
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| | copy.PLAN AHEADThe end of your life is
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| found to be valid, assets are distributed
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| | something you probably don't want to
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| according to the will. If the will is
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| | dwell on, but thinking about what will
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| found to be invalid, assets are
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| | happen to your loved ones and your assets
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| distributed in accordance with state
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| | and personal possessions is important.
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| laws.Responsibilities usually undertaken
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| | Making sure you've done all you can to
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| by an Executor/Executrix include:--Paying
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| | make their lives easier will give you
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| valid creditors;--Paying
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| | peace of mind. And once your will is
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| taxes;--Notifying Social Security and
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| | drafted, you won't have to think about it
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| other agencies and companies of your
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| | again unless something significant in
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| death;--Canceling credit cards, magazine
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| | your life changes.
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