Estate Plan Guides Proper Transition of Assets After Death

(Originally published in The Business Journal)

Estate planning is something everyone needs, but no one wants to think about.  The key to passing your business or other assets along to your loved ones is planning.

Many people only think about estate planning after they have lost someone close to them or while they are planning a trip.  The best time to think about estate planning is now. 

All basic estate planning includes consideration of four key documents.

Last Will and Testament

A will is one of the most important legal documents.  You may not realize it, but the State of Ohio has written a will for all Ohio citizens. 

The question is, do you want the State of Ohio to determine who will raise your children and/or inherit your assets? Or do you want to make these determinations in your own will?

Your will lets you decide how your estate will be divided, who will guide your minor children, and who will be responsible for making certain your wishes are fulfilled.

Durable Power of Attorney

Who will pay your bills or conduct your business if you suffer a stroke or are otherwise incapacitated?  A durable power of attorney answers these questions. 

You have the ability to designate a person or persons that you trust to conduct all, or any portion, of your business on your behalf.

Durable Power of Attorney for Health Care

Who makes health care decisions for you if you cannot make those decisions for yourself? You have the ability to designate a person that you trust to make health care decisions for you if you become incapacitated.

Living Will

The unthinkable has happened, and your doctor has determined that you are in a permanently unconscious state.  Do you want to have your life prolonged by artificial means, such as breathing machines or feeding tubes? 

The living will is your opportunity to express your desires in advance, rather than burden your family or the courts with these difficult issues.

Other Considerations

In addition to these four documents, you also need to consider ownership of your assets.  Is your property (such as business interests, real estate, stock, bank accounts, vehicles, etc.) titled in your name alone? 

Is there a better form of ownership that may avoid probate, such as survivorship, payable-on-death or transfer-on-death?  Careful management of asset ownership should be an important component of estate planning.

Some clients may need to consider more sophisticated estate planning tools, such as family trusts. A trust is a separate legal entity that enables assets to be transferred privately, and outside the province of the probate court.

Estate planning can also have serious tax implications. Estate taxes affect a small percentage of estates, but in larger estates, taxes can be significant. You pay enough during your lifetime, so you should try to avoid being taxed even after you are gone.

Estate planning can save your family thousands of dollars, and most importantly, it can ensure that your intentions will be honored.

Allison can be reached at ballisonl@hhmlaw.com or at (330) 426-9491.