Careful estate planning should be a concern
and priority for everyone. Not only should an appropriate estate plan be
implemented, it should be reviewed on a regular basis to insure that it meets
with your current needs and desires. Individuals with large estates should
consider the use oftrusts, gifting and charities to minimize estate taxes.
Proper titling of assets, utilizing "payable on death" or "transfer on death"
beneficiary designations and "joint ownership with rights of survivorship"
designations, while not providing estate tax savings, can maximize the ability
to pass on assets to beneficiaries outside of the probate process. Although each
person's estate planning needs are unique, there are four basic estate planning
documents that everyone should consider incorporating into his or her estate
plan. These four documents are discussed in the following paragraphs.
Your Last Will and Testament sets forth your intentions as to the distribution of those assets subject to probate at the time of your decease. A valid will must be executed by an individual at least 18 years old, of sound mind and free from undue influence and duress. Also, certain formal requirements related to execution and witnesses must be met. A will may be amended or revoked at any time so long as the requirements described above are met. The primary purposes of a will are to indicate whom you wish to name as beneficiaries of your assets as well as what conditions, if any, are placed on those bequests. Your will also indicates whom you wish to appoint to administer your estate, pay any debts and distribute the assets to the beneficiaries. You may also name guardians for minor children and trustees to manage assets that you do not want to be distributed outright to beneficiaries at the time of your death. Should you fail to have a valid will in place at the time of your decease, the probate court will appoint an administrator to administer your estate and distribute your assets in accordance with the state's laws of descent and distribution. This may vary greatly from your intent and desires as to whom you would like to leave your estate assets.
Another beneficial estate planning document
is a general durable power of attorney. It is, in essence, a financial and legal
power of attorney in which you appoint an individual to manage your financial
and legal affairs should you wish for them to do so or should you be unable to
do so yourself. This document usually grants broad powers to include signing
checks, managing accounts, executing deeds or contracts and so forth. It is
durable in that it remains effective if the grantor becomes incapacitated or
incompetent. Most individuals who execute a power of attorney continue to manage
their affairs as long as they are able to, and the power of attorney is not
placed into effect until or if the grantor becomes unable to do so. Failing to
execute a power of attorney while still competent may result in the necessity of
a guardian if an individual later becomes incompetent and unable to manage his
or her affairs. This entails significant time and expense that could have been
avoided with a power of attorney. A power of attorney is also revocable at any
time so long as the individual is competent to do so.
The other two basic estate planning documents address health care issues. A living will sets forth in writing your desire that should your attending physician and at least one other physician determine that you are in a terminal condition or a permanently unconscious state, you do not want to be administered life support should it not provide you with care or comfort or alleviate your pain but merely prolong your life. You may also indicate in a living will whether, should you be permanently unconscious, you wish to be provided with artificial nutrition and hydration, such as feeding tubes, or whether you wish that such care be withdrawn. Your living will can also be used as a "Do Not Resuscitate" order and identification indicating that you do not want CPR administered if you are in a terminal condition or permanently unconscious state. Other health care issues are addressed in a durable power of attorney for health care. This document allows you to appoint an individual to make health care decisions for you should you be unable to do so. This includes both life sustaining issues as well as other health care issues. Both the living will and health care power of attorney should comply with Ohio statutory law relative to these issues that was enacted by the Ohio legislature in October of 1991. Therefore, any health care documents executed prior to this date should probably be revised in order to comply with the requirements of state law.
Each estate plan should be tailored to an individual's particular
needs and wishes. Some may be more complex than others and require additional
estate planning documents. However, for many individuals, the execution of these
four basic estate planning documents, a will, a general durable power of
attorney, a living will and a durable power of attorney for health care will
serve as adequate planning for the events and situations that may arise during
your lifetime and at the time of your decease.
