Estate planning is the process of arranging for the management and future distribution of a person’s property and assets during his or her life in the event of incapacitation or death. Many people fail to recognize that estate planning does not require immense amounts of wealth. An estate can include everything a person owns, including real estate, savings accounts, vehicles, and other personal possessions. Estate planning is important, not only for what will happen to assets in the event of incapacitation or death, but also for determining who will make important decisions in the event of incapacitation or death.
Extensive Experience in Probate Avoidance and Estate Planning in Cleveland
Estate planning should always be considered, regardless of the size of an estate. With proper estate planning, families can save time, money, and avoid the unnecessary stress of having to deal with the intricate probate process.
My Ohio Estates offers comprehensive estate planning services in Cleveland. My Ohio Estates focuses on helping his clients take control and ensuring the wishes of his clients are properly addressed in a manner that is legally recognized. My Ohio Estates offers other services that can further support planning, including Living Wills, Healthcare and Financial Powers of Attorney, and Wills. To schedule a complimentary consultation with our firm, call (330) 562-5951 today.
Estate Planning in Cleveland Ohio: A Brief Overview
The goal of estate planning is to protect assets, establish who will manage assets and responsibilities in the event of incapacitation or death, and ensure beneficiaries receive property and assets in a way that reduces time and costs.
Estate planning can establish a foundation that can later be modified as personal situations change. In estate planning, it is necessary to ask how the assets should be managed or distributed in the event of incapacitation or death. To ensure property and assets are allocated accordingly, it is important to set instructions that indicate who will be receiving the assets, what assets will be given, and when they will be receiving them. This, of course, should happen with the least amount of legal fees and court costs paid. In the State of Ohio, the estate tax has been repealed. As of 2013, an Ohio estate tax is no longer applied to estates of those who died on or after January 1st, 2013.
Estate Planning is for Everyone
As previously mentioned, many people fail to recognize that estate planning is not just for the rich. Additionally, estate planning is also not only for retirees. Since it can be difficult to predict sudden mental incapacitation or death, it is important to set a plan in the event a tragic accident occurs. If you have minor children, it is important to establish who will take of them in the event of incapacitation or death.
People often tend to put off estate planning because they do not believe they own enough property and assets. Almost everyone has an estate to protect. An estate can include checking and savings accounts, life insurance, vehicles, home or real estate, furniture, life insurance, retirement funds, and other personal possessions. No matter how large or modest the estate is, planning for what happens to the assets in the future is important.
Basic Steps to Estate Planning – If You Live in Cleveland, Protect Your Assets Now
There are many reasons to plan for an estate, including protecting and controlling assets, planning for incapacity, minimizing costs, and maximizing beneficiary satisfaction. However, for the planning to reach its objectives, it is necessary to adhere to the following steps.
- Inventory of Property and Assets – A common misconception of estate planning is that there is not enough property or assets to justify a plan. Once all property and assets are identified, however, people are often surprised by the quantity of tangible and intangible assets they own.
In an estate, tangible assets can include:
- Real estate, such as homes, properties, or land
- Motor vehicles, including, motorcycles, cars, boats, or commercial trucks
- Collectible items, such as art, coins, trading cards, or other antiques
- Other personal possessions, such as electronics or furniture
Intangible assets can include:
- Mutual funds, stocks, and bonds
- Checking and savings accounts
- Certificates of deposits
- Digital assets
- Health savings
- Ownership of a business
- Retirement accounts
- Life insurance policies
Once an inventory of personal assets and property has been made, it is necessary to estimate their value. To do this, an outside valuation can help, such as a recent appraisal of the home, or recent statements of financial accounts.
- Account for the Survivor’s Needs – Once an inventory of the property and assets has been made, it is necessary to think about how loved ones will be taken care of in the event of a sudden passing or mental incapacitation. The following should be considered:
- Life insurance – Determine whether there is sufficient life insurance to cover mortgage payments, college tuition, or a loved one’s medical expenses.
- Children Under 18 – A guardian should be named when there are children under 18. Doing so will also ensure that you control who raises your children in the event of incapacitation or death and help avoid costly court fees. Moreover, the children’s care should be planned for as well. One should never expect other family members to want to care for the child, much less that they share the same beliefs as the parents.
- Directives Should Be Established – Complete estate planning should include legal directives, which may involve any of the following:
- Trust – In some cases, creating a trust may be necessary. Under a living trust, it is possible to designate a portion of the estate to go toward a beneficiary even though incapacitation or death has not occurred. When necessary, a named trustee can take over the management of the property and assets. When incapacitation or death happens, the trustee will transfer the assets to the named beneficiaries, which will bypass the probate process.
- Medical Care Directives – Medical care directives consist of Healthcare Powers of Attorney and Living Wills. These documents spell out the wishes of a person when it comes to his or her medical care in the event of incapacitation. The designated person named in the Living Will has the power to make end of life decisions on behalf of someone in the event two or more doctors agree that he or she is permanently unconscious or terminal. The person designated in the Healthcare Power of Attorney has the ability to make all other decisions relating to medical care, such as hiring doctors and deciding on treatment.
- Durable Financial Power of Attorney – This document designates an agent to manage the financial affairs of a person. When needed, the designated individual will manage property and assets and have the authority to handle all financial matters, such as paying bills, taxes, and acting as your representative for government benefits.
Start Your Planning Today – Consult With a Professional Attorney Serving Cleveland Residents
When it comes to estate planning, there is no such thing as starting too soon or having too little – everyone has something to protect. To ensure that you have a tailored estate plan in place for you and your loved ones, consider working with an experienced estate planning attorney serving the residents of Cleveland.
Ohio laws regarding estate planning can be complex and they are subject to change. The Cleveland estate planning law firm, My Ohio Estates, will help you determine the best plan for you and your family. To establish control and ensure the property and assets you have worked a lifetime to build are protected, consider scheduling a complimentary consultation with My Ohio Estates today.