Blast From The Past: Why One Should Not Postpone Post-Divorce Estate Planning

Estate Planning Ohio

Post-Divorce Estate Planning Should Not Be Postponed

PUBLISHERS NOTE: Nine years ago we posted this article to the Ohio Family Law Blog. It has been a popular one and has stood the test of time. For more information, Attorney Joseph E. Balmer’s free Ebook “The Four Basics of Ohio Estate Planning” is available to download on our website here.

estate planningMany individuals first think about estate planning when they get married. They realize that, at a minimum, they should have a will, general power of attorney and power of attorney for health care. They may later amend these documents due to life changes or changes in their financial position. However, one might be surprised to know that a recent survey by PNC Wealth Management disclosed that 30% of adults with financial assets of $500,000 or more did not have a will! A recent Harris Interactive survey of the general population found that 58% of all adults had no will. One might be even more surprised that if he or she had a will and became divorced, he or she may be no better off than if he or she had no will.

Fortunately, under Ohio law, if one is divorced, … Read More... “Blast From The Past: Why One Should Not Postpone Post-Divorce Estate Planning”

Estate Planning for Second Marriages

The Need For Proper Estate Planning In Second Marriages

Researched and written by Tammy Chavez, third year law student at the University Of Dayton School Of Law, and a former law Extern for our Firm.

Estate planning Plays A Crucial Role For Second Marriages

estate planning second marriagesNowadays, second marriages are not uncommon. In fact, 40% of all new marriages involve remarriages. Regardless of the reason for remarriage, estate planning is more important than ever for second marriages. Estate planning plays a crucial role for second marriages, in ensuring a person’s assets are distributed according to his/her wishes.

In order to relieve some of the confusion surrounding estate planning with second marriages, I had the opportunity to discuss this confusing topic with Holzfaster, Cecil, McKnight & Mues’ very own specialist in Estate Planning, Trust and Probate Law, Mr. Joseph Balmer.

In interviewing Mr. Balmer, he stated “three things that I always want to look at are: (1) are we looking to take care of the spouse during her lifetime while also preserving assets for the children of a prior marriage? (2) How do we need to title assets to accomplish our objectives? (3) Do we need to consider estate tax … Read More... “Estate Planning for Second Marriages”

Estate Planning in Ohio ALERT: Is My Trust Still Appropriate?

Estate Planning And The Revocable Living Trust

estate planning revocable living trustA perfect example of the benefits of reviewing your estate planning documents on, at least, an occasional level, can be seen with the marital revocable living trust, also sometimes known as an “A-B” trust.  Should you have such a document, and if it was prepared long ago and never updated, it is probably set up to accomplish exactly the OPPOSITE of what you want it to do.

There are many types of trusts.  There are many reasons to set up a trust.  With a married couple, the most common type of trust is a marital revocable living trust.  Historically, the main purpose of this type of trust was to avoid the probate process at death and to maximize estate tax savings.  Prior to the year 2000, all assets passing to a surviving spouse were exempt from estate taxes.  However, for assets not passing to a surviving spouse, the maximum estate tax exemption for Ohio estate taxes was $25,000 and the maximum estate tax exemption for federal taxes was $600,000.  It was not uncommon for those with a large estate to set up a marital revocable living trust to, in effect, double … Read More... “Estate Planning in Ohio ALERT: Is My Trust Still Appropriate?”

Guardian Issues: New Responsibilities Imposed on Ohio Guardians

What Are The Additional Requirements For A Guardian Of An Estate In Ohio?

guardian estate planningWhile it has always been a great responsibility to serve as a legal guardian for another individual, last year Ohio imposed a number of additional requirements of guardians in an effort to protect the welfare and safety of those wards to whom they serve.  These protections are both financial and personal.

An individual can be guardian of the person, guardian of the estate (financial), or more likely guardian of the person and the estate of another individual.  Previously, a guardian of the person was required to protect and control the ward, provide suitable maintenance for the ward, make appropriate decisions for the ward, provide education if the ward is a minor and file guardian’s reports with the court.  A guardian of the estate was required to file an inventory with the court, deposit money in a financial institution in this state, invest funds in a lawful manner, make and file accounts annually, expend funds only upon written approval of the court and file guardian’s reports.

I addition to these requirements and in order to better protect the ward, all Ohio guardians must complete a six hour course … Read More... “Guardian Issues: New Responsibilities Imposed on Ohio Guardians”

Estate Planning and Probate: The Effect of Titling of Assets

Effective Titling Of Assets Can Benefit Estate Planning Probate Documents

estate planning probate payable on death titling of assetsMany people do not understand the distinctions between how one titles one’s assets and the resulting repercussions from it. Properly titling one’s assets can greatly increase the effectiveness of one’s estate plan. Some of these distinctions are described below:

  • Power of Attorney: Adding another individual as power of attorney on an asset does not convey any ownership rights, but allows an agent to manage the asset and utilize it just as if the owner could. The agent is known as your attorney-in-fact. Adding a power of attorney does not keep an asset from having to go through the probate process, but allows an agent to manage the asset (pay bills, etc.) without having to go through a guardianship proceeding.
  • Payable on Death/ Transfer on Death: often confuse Power of Attorney (POA) with Payable on Death (POD) designations. By designating someone as a Payable on Death (POD) beneficiary does not give any rights during the owner’s lifetime but allows the asset to pass directly to the payable on death beneficiary on the death of the owner without having to go through the probate process. It “avoids probate.” Payable on Death (POD)
… Read More... “Estate Planning and Probate: The Effect of Titling of Assets”

Estate Planning: A Truly Sad Story, Prince – His Tragic Death and His Lack of Estate Planning

Singer Prince Passing Proves The Importance Of Estate Planning Documents

estate planning ohio princeAs everyone knows by now, sadly, Prince unexpectedly passed away recently. In the days following his untimely death, questions began to arise as to whom would inherit his estate, which some have estimated to be worth between 300 and 500 million dollars. Surely he had a will, experts speculated. He had an army of attorneys working for him.

As it turns out, he apparently died with no estate planning documents in place. When asked how this happened, one of his many attorneys stated “Maybe he didn’t expect to die.” Unfortunately, this is the mindset that many of us have. We never would expect to die so soon.

Lack Of Estate Planning Documents Can Result In Repercussions For Surviving Family Members

Prince died leaving 1 full sister and 6 half siblings. Under Minnesota law, as under Ohio law, the 7 of them will share equally in his estate. Is this what he would have wanted? Possibly, but he was known to have given generously to charities, having developed a foundation and having already donated millions to various charitable organizations. Sadly, none of them will share in his estate.
Prince’s … Read More... “Estate Planning: A Truly Sad Story, Prince – His Tragic Death and His Lack of Estate Planning”

Estate Planning Tips for Same-Sex Couples

Statutory Protections In Estate Planning Now Available To Surviving Spouses Of Same-Sex Marriages

estate planning same-sexNow that the institution of marriage has been sanctioned for same-sex couples, estate planning options and benefits that have not been available before can now be utilized to protect and provide for spouses in same-sex marriages.

Surviving spouses have always been provided certain statutory rights to a deceased spouse’s estate so that they are not completely disinherited.  A surviving spouse is entitled to a “family allowance,” usually the first $40,000 of the deceased spouse’s estate.  The surviving spouse is also entitled to the first two automobiles of the deceased spouse, unless specifically bequeathed to someone else.  The surviving spouse may live in the marital residence rent-free for one year.  The surviving spouse has the option to purchase the marital residence.  The surviving spouse can elect to take against the will.  These are just some of the statutory protections now available to surviving spouses of same-sex marriages.

Although Ohio no longer has an estate tax, the federal estate (or inheritance) tax exists.  Surviving spouses have always been able to utilize the federal estate tax credit of a predeceased spouse, either through a Marital Credit-Shelter Trust, use of a … Read More... “Estate Planning Tips for Same-Sex Couples”

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