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living trusts and estate planning

Ohio Irrevocable Trusts

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What is an Irrevocable Trust?

Irrevocable trusts cannot be changed or terminated during the grantor’s lifetime without all the beneficiaries’ permission or court approval. The grantor relinquishes control over the trust and the assets placed in the trust.

Revocable Trusts Vs. Irrevocable Trusts

Revocable trusts can be changed or terminated during the grantor’s lifetime as long as they are competent. This type of trust is attractive, compared to an irrevocable trust, because you can update your beneficiaries, change which assets are included in the trust, and update how assets will be distributed.

Learn more about the key similarities and differences of revocable and irrevocable trusts here.

Irrevocable Living Trusts Vs. Testamentary Trusts

An irrevocable living trust is created during your lifetime and goes into effect immediately (once properly funded). A testamentary trust is created within your will and goes into effect when you pass. While the living trust avoids probate, the testamentary trust does not.

Why should I set up an Irrevocable Trust?

An irrevocable trust can:

  • Protect your assets from creditors and litigation, which might be especially beneficial if you are a business owner or are in a high-profile career
  • Protect your access to government benefits and preserve your family’s wealth for future generations
  • Help you avoid or reduce estate taxes
  • Protect your assets from a nursing home or other long-term care expenses

More Specific Types of Irrevocable Trusts & How They Work

Asset Protection Trusts

The main goal of an asset protection trust is to insulate the grantor’s assets from creditors and/or litigation.

Marital Trusts

A Marital Trust, also known as an A Trust, is established to support a surviving spouse. It helps the surviving spouse to avoid estate taxes when the first spouse passes away and their assets are being transferred.

The surviving spouse is the sole beneficiary of the Marital Trust during the couple’s lifetime. He or she can do what they please with the assets, including withdrawing them, selling them or gifting them. At the second spouse’s death, the trust can be passed to other named beneficiaries such as children or grandchildren.

Most A Trusts are also Qualified Terminable Interest Property (QTIP) Trusts. In this case, the trust is required to pay all income generated by the trust to the surviving spouse annually. In addition, with a QTIP Trust, the grantor maintains control after death. This means that the surviving spouse receives income from the trust, but restrictions are placed on how much can be taken out of the trust, and what the funds are used for.

In many cases, when a spouse sets up an A Trust, they also set up a B Trust, or a Bypass Trust. When the first spouse passes, they can have assets passed to beneficiaries other than the surviving spouse without incurring estate taxes. They transfer the maximum amount of assets allowed by estate tax exemption to beneficiaries before transferring the remainder of the estate into the A Trust.
Together, the Marital Trust (A Trust) and Bypass Trust (B Trust) make up the AB Trust.

Generation-Skipping Trusts

Generation-Skipping trusts are often utilized by grandparents to transfer assets to their grandchildren, while avoiding estate taxes.

Spendthrift Trusts

Spendthrift trusts are often utilized when a beneficiary is young or has a history of being financially irresponsible. In a spendthrift trust, the beneficiaries do not have any direct access to assets. The trustee is able to give the beneficiaries assets and funds as they see fit.

Charitable Trusts

Charitable Trusts are established to benefit a charitable organization. In this type of trust, an organization is appointed trustee. As they invest funds within the trust, they can generate a regular stream of income for the organization. There are two main types of Charitable Trusts:

  • Charitable Remainder Trusts (CRT) give a set amount of income to beneficiaries, and the remainder goes to the charitable organization.
  • Charitable Lead Trusts (CLT) give a set amount of income to the charitable organization, and the remainder goes to beneficiaries or stays in the trust.

Life Insurance Trusts

The only asset within this trust is an insurance policy. This trust is utilized to avoid estate tax on money that comes out of the policy upon the grantor’s passing.

Grantor-Retained Annuity Trusts (GRAT)

This type of trust is typically utilized in estate planning to minimize taxes on large financial gifts to family members. After assets are placed in the trust, an annuity is paid out to the grantor every year. After the trust has expired and the last annuity payment has been made, the beneficiary receives the remaining assets with minimal tax liability.

Qualified Personal Residence Trusts (QPRT)

A QPRT allows the grantor to remove a personal home from their estate, reducing the amount of gift tax incurred when transferring assets to beneficiaries. The owner of the home is allowed to remain on the property for a period of time with retained interest. The value of the property during the retained interest period is calculated based on IRS applicable federal rates. Once the retained interest period is over, the remaining interest is transferred to the beneficiaries.

How To Set Up An Irrevocable Trust With An Attorney

It’s important to remember that an irrevocable trust is just one part of a comprehensive estate plan.

After it has been determined that an irrevocable trust should be part of your estate plan, an attorney can walk you through these key steps:

  1. Decide what assets will be placed in your trust. While you might already have an idea of what you’d like to include, your attorney may help you uncover some additional assets that would benefit from being placed in a trust. Assets can range from cash and investments to real estate and other property.
  2. Choose your beneficiaries. They might include your spouse, your children, grandchildren or other close family members.
  3. Establish the rules of your trust. For example, will assets be distributed with age requirements or terms for how the assets may be used?
  4. Determine who will manage the trust.

Once you are confident in these decisions, your estate planning attorney can draft the trust document and begin assisting you with funding the trust.

This blog is for educational purposes only; it is not intended to provide legal advice. If you’re planning for your estate and want to speak with an attorney, call 216-573-3723.

 

Daniel A Baron Estate Planning lawyer

What Is A Revocable Trust?

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Cleveland, Ohio estate planning lawyer, Daniel A. Baron, offers the following information as to whether or not you should have a Revocable Trust as part of your comprehensive estate planning.

When you decide it is time to do your estate planning, one decision to make is: Do I Need A Trust? If the answer is yes, then the next question is whether or not a Revocable or Irrevocable Trust is the right tool to use in your Comprehensive Estate Planning.  Although both of these are created to avoid probate, there are differences between the two.

A Revocable Trust means you can change things at any time such as;

  • Beneficiaries
  • Add items of value to the trust or remove items from the trust and so on.
  • Changing Trustees
  • Change what funds the trust
  • Eliminate the trust
  • Change amounts to be funded
  • Add Trustees

With a Revocable Trust – the Grantor or Settlor creates the trust AND can also act as the Trustee AND can be named as the beneficiary.

An Irrevocable Trust means no changes can be made (with a few exceptions) once the trust is created.

An Irrevocable Trust has three parties to the Trust; the Grantor or Settlor, the Trustee(s), and the beneficiary or beneficiaries.

  1. The Grantor or Settlor is the person who funds or establishes the Trust
  2. The Trustee is the person who oversees the trust, and
  3. The beneficiary reaps the rewards of the income generated by the investments of the trust. Although the Grantor / Settlor and the beneficiary can be the same, they cannot act as the Trustee

With a Revocable Trust you must remember if you are looking to keep investments, bank accounts, property, and any other such asset as part of the trust, the accounts must be set up in the trusts name and property must be titled to the trust.  Failure to do this while you are still living means that the assets still in your personal name at the time of your death will be subject to probate and a larger amount of estate taxes.

If you are having difficulty determining whether your situation calls for a Revocable or Irrevocable Trust, seek the advice of an experienced Estate Planning Lawyer. For more information on reviewing your goals for your Comprehensive Estate Planning, contact Daniel A. Baron of Baron Law today at 216-573-3723.

Helping You and Your Loved Ones Plan for the Future

Baron Law LLC Estate Planning Attorney

529 Plan For Your Grandchildren

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Baron Law LLC, Cleveland, Ohio, offers information for you to reflect upon while you are setting out looking for an estate planning attorney to help protect as much of your assets as you can. For more comprehensive information contact Baron Law Cleveland to draft your comprehensive estate plan to endeavor to keep more of your assets for your heirs and not hand them over to the government by way of taxes.

In order to become Medicaid eligible, generally, one must have $2,000 or less in assets and earn only $2,205 or less per month in income. There are, however, multiple exceptions which carve out excludable assets, such as the child caregiver exception and the community spouse resource allowance. With the recent upswing in U.S. financial markets, many individuals are asking their estate planners and elder law attorneys ways to save or invest their money but not run afoul of eligibility requirements for government assistance programs such as Social Security and Medicaid. Increasing in popularly and meeting this increased need for saving and investment, 529 and 529A plans are widely being used by Ohio estate planning attorneys to great benefit and profitability.

What is a 529 Plan?

A 529 Plan is comparable to a health saving account. Money is put in and receives tax-benefits if used for educational purposes. All of the contributions made to the account grow tax-free and withdrawals are free from federal and state tax if used for qualified higher education expenses. Significantly, contributions to 529 Plans are not tax deductible. 529 Plans allow money to accrue tax free for the benefit of a designated third-party beneficiary while still retaining control of the assets by the owner prior to distribution provided such funds are spent on education.

529 Plans are a countable Medicaid asset because the owner can take their money back out at any time. As such, an individual owning a 529 Plan will face eligibility problems for government assistance programs if the money within a 529 Plan isn’t spent before applying for such assistance. The critical question is who owns the account. If owner reserves right to revoke or take the money within a 529 Plan, Medicaid will require the money to be spent on healthcare, spenddown, before eligibility for Medicaid services. Further, improper distributions, i.e. spending the money in the 529 account for medical bills instead of college, will trigger deferred taxes, plus penalties of 10 percent.

One solution to a mandatory 529 account spenddown is to legally shift the account to a family member of the beneficiary, such as a grandchild’s parents. However, though this effectively transfers control of the money to a third party thus facially making it a noncountable asset, such a transaction is still considered a transfer of assets that triggers a Medicaid penalty period if it occurs within the 5-year lookback window.

At this point, 529 Plans are not a recognized federal exception and no Ohio regulations are on the books exempting 529 Plans as a countable Medicaid asset. As such, estate and Medicaid planners must be aware that even though 529 Plans are attractive vehicles for saving, 529 Plan use may have significant consequences for seniors and individuals in need of government assistance programs such as Medicaid, Medicare, and Social Security. Contract a local Cleveland estate planning attorney to find out which saving accounts are preferable for your situation.

What is a 529 A plan?

Often referred to as a STABLE or ABLE account, 529A plans are accounts used as moderate investment vehicles to generate money to pay for approved expenses for the disabled. STABLE accounts are exempted from Medicaid and are not a countable resource. As such, having a STABLE account does not affect Medicaid eligibility. Further, the first $100,000 in a STABLE account is exempt from the Social Security Income limit.

Additionally, taxpayers can deduct contributions up to $​4,000 from their Ohio taxable income per STABLE account, per year, with unlimited carryforward of contributions over the yearly amount. This means that if contributions exceed $4,000 to a STABLE account in a year, the remainder of your contributions are carried forward to subsequent years until your entire contribution has been fully deducted. In this way, the government incentivizes maximum STABLE contributions which, in turn, reduces the financial burden on government assistance programs. Furthermore, a beneficiary’s individual contributions may also be eligible for the federal Saver’s Credit. An Ohio estate planning attorney can fill you in on the details, use, and eligibility requirements of the federal Saver’s Credit.

STABLE account earnings are not subject to federal income tax provided they are spent on qualified disability expenses. Acceptable. i.e. qualified, expenses are quite more expansive than with 529 Plans, an expense is qualified if 1) the expense was incurred at a time when an individual was suffering from an eligible disability, or 2) the expense relates to the disability, or 3) the expense assists in the maintenance or improvement of health, independence, or quality of life for a disabled individual.

Qualified expenses are not just medical expenses, but also include education, vocational, and living expenditures. Some examples include:

Tuition, books, and educational supplies and materials

Rent, mortgage, property taxes, and utilities

Transportation, qualified vehicles, and moving expenses

Vocational training

Health insurance premiums, medical equipment, treatment, and personnel

Legal fees, financial management services, and funeral expenses

If STABLE funds are used for non-qualified purposes, the owner will have to pay income taxes on the distributions, plus an additional 10% penalty. Further, the non-qualified funds can be counted as an asset/income for eligibility for government assistance programs such as Medicaid and Social Security. If you’re thinking about taking significant distributions from STABLE plans, always consult your estate planning attorney. The last thing you want is to get a disabled family member kicked off government assistance and then have to go through the arduous process of reapplying.

There are five investment options to choose from for a STABLE account, however, a financial adviser is in the best position to pick the best option for a client. A STABLE account used in conjunction with a special needs trust is an effective and powerful investment tool for those with disabled children or family members. Further, federal regulations specifically provide for tax-free rollovers from 529 college savings plans to STABLE accounts. Most people chose to rollover because either college expenditures are no longer needed or a priority in light of a recent and significant health change for a loved one.

529 college saving accounts and STABLE plans can become an indispensable saving and investment vehicle in one’s estate plan. An experienced and knowledgeable estate planning attorney is in the best position to advise you of the pro’s and con’s of each. Maintaining eligibility for government assistance while maximum personal retention of money and assets is perhaps the most common concern for clients of elder law attorneys. Both of the above mentioned tools, in the right hands, can financially provide for necessary healthcare and save or earn a lot of money for family members.

You don’t have to be rich to protect what you’ve spent a lifetime trying to build. To find out whether a trust is right for your family, take the one-minute questionnaire at www.DoIneedaTrust.com. There are a number of different trusts available and the choices are infinite. With every scenario, careful consideration of every trust planning strategy should be considered for the maximum asset protection and tax savings. For more information, you can contact Mike Benjamin of Baron Law LLC at 216-573-3723. Baron Law LLC is a Cleveland, Ohio area law firm focusing on estate planning and elder law. Mike can also be reached at mike@baronlawcleveland.com.

Helping You And Your Loved Ones Plan For The Future

About the author: Mike E. Benjamin, Esq.

Mike is a contracted attorney at Baron Law LLC who specializes in civil litigation, estate planning, and probate law. He is a member of the Westshore Bar Association, the Ohio State Bar Association, the Cleveland Metropolitan Bar Association, and the Federal Bar Association for the Northern District of Ohio. He can be reached at mike@baronlawcleveland.com.

Disclaimer:

The information contained herein is general in nature, is provided for informational and educational purposes only, and should not be construed as legal or tax advice. The author nor Baron Law LLC cannot and does not guarantee that such information is accurate, complete, or timely. Laws of a particular state or laws that may be applicable in a given situation may impact the applicability, accuracy, or completeness of the preceding information. Further, federal and state laws and regulations are complex and subject to change. Changes in such laws often have material impact on estate planning and tax forecasts. As such, the author and Baron Law LLC make no warranties regarding the herein information or any results arising from its use. Furthermore, the author and Baron Law LLC disclaim any liability arising out of your use of, or any financial position taken in reliance on, such information. As always consult an attorney regarding your specific legal or tax situation.

Dan Baron Baron Law

Exceptions and Bars to Inheritance

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Baron Law LLC, Cleveland, Ohio, offers information for you to reflect upon while you are setting out looking for an estate planning attorney to help protect as much of your assets as you can. For more comprehensive information contact Baron Law Cleveland to draft your comprehensive estate plan to endeavor to keep more of your assets for your heirs and not hand them over to the government by way of taxes.

When someone dies intestate (without a will), there are several exceptions to the rules of descent and estate distribution which act to bar a person from receiving what would have been such person’s intestate share of the decedent’s estate. These rules and exceptions highlight the importance of having a comprehensive estate plan and, in certain circumstances, are of paramount importance to heirs and beneficiaries. Rules are only written when they are needed, and the context surrounding these rules and exceptions illustrate some of the more extreme problems that an estate administration may potentially face. As always, an experienced Ohio estate planning attorney can fill you in on all the details and make a plan that will deal with any issues proactively.

Slayer Statute

The most commonly known exception is the slayer statute which is codified under Ohio Revised Code § 2105.19. This statute deals with the crimes of aggravated murder, murder, voluntary manslaughter, and/or complicity in the violation of any of the above crimes. If one has pled guilty to, has been convicted of, or has been found not guilty by reason of mental defect of, any one of the above crimes, such person is barred from receiving any portion of his or her victim’s estate. This statute bars inheritance regardless of whether it would have been through intestacy or as a bequest under a will. The same also applies to other property received as a result of death, like insurance proceeds. The slayer statute is an attempt by the Ohio legislature to write into law the cliché that crime doesn’t pay.

Illegitimate Children

Under common law, children born out of wedlock were not entitled to inherit from their mother or father. O.R.C. § 2105.17 states, however, that children born out of wedlock shall be capable of inheriting or transmitting inheritance from and to their mother and from and to those from whom she may inherit, or to whom she may transmit inheritance, as if born in lawful wedlock.

Ohio’s intestacy statute does not specifically address the ability of children born out of wedlock to inherit from their father. This issue, however, has been addressed in Ohio case law. Such case law has established multiple ways in which a child born out of wedlock could inherit from such a child’s father, some of the ways include the child’s father: 1) marrying the child’s mother, 2) providing for the child in a will, 3) designating the child as an heir, or 4) adopting the child.

The enactment of the Ohio Parentage Act, codified via O.R.C. § 3111, provided an additional way for a parent-child relationship to be established by allowing a child to bring an action to determine parentage. There has been disagreement among Ohio courts as to whether such actions to determine parentage must be brought prior to the father’s death. Some courts have held that while O.R.C § 2105.06 “does not require a parentage action to be brought before the death of the father… a probate court does not have jurisdiction to hear a parentage action under O.R.C. Chapter 3111.” See Estate of Hicks, 629 N.E.2d 1086 for more information. This likely creates a necessity to bring any parentage action by any estranged child as soon as possible in order to prevent being automatically disinherited by virtue of a lack of probate court jurisdiction. Contact a local Cleveland estate attorney to make sure your inheritance rights are valid and, if not, the appropriate steps are undertaken to validate and protect them.

Children Conceived as a Result of Rape

Recently in 2015, the Ohio legislature recently passed law that prevents a person who commits rape or sexual battery, or any of such person’s relatives, from receiving an intestate share from a child, or child’s decedents, who was conceived as a result of the rape. Such is codified via O.R.C § 2105.062.

Children who are abandoned by parents

If a minor child has been “abandoned” by a parent, then the parent is prevented from receiving an intestate share of the deceased minor’s estate. O.R.C. 2105.10(B). A child is “abandoned” by a parent if the parent has failed, without justifiable cause, to communicate with the minor, care for the minor, and provide support as required by law for at least a year immediately prior to the minor’s death. O.R.C. 2105.10 (A)(1). While few minors die with significant assets, this statute may be significant in the event of a wrongful death of the minor in which a significant windfall due in insurance proceeds or litigation may be contemplated. This potential windfall is a major reason why estate planning, even for individuals relatively young, should not be overlooked. The last thing a grieving family wants to do, while also negotiating a legal settlement, is deal with internal family disputes over who has authority over the decedent child’s estate, and along with it, the authority to negotiate the settlement amount for legal claims. Contact a local estate attorney to prevent this from happening.

Issues relating to adoption

Once a child has been adopted and after the final order of adoption is issued, the adopted child’s relationship with the natural/birth family, except the natural parent in the case of a step-parent adoption, is legally terminated. This eliminates any rights such child had to inherit from the natural family under the laws of descent and distribution. Instead, the adopted child, if that child is adopted prior to age 18, is treated as a child of the adoptive parent for purposes of intestate succession law and entitled to all the rights and privileges inherent to being a natural child.

These rules and exceptions to inheritance only touch on the multitude of problems and issues that face families when planning an estate or administrating an estate after death. Death is something no one likes to think about and even less people plan for. Just a few hours, however, with an experienced Cleveland land estate planning attorney can save your family months of stress and thousands of dollars in legal fees and court costs.

You don’t have to be rich to protect what you’ve spent a lifetime trying to build. To find out whether a trust is right for your family, take the one-minute questionnaire at www.DoIneedaTrust.com. There are a number of different trusts available and the choices are infinite. With every scenario, careful consideration of every trust planning strategy should be considered for the maximum asset protection and tax savings. For more information, you can contact Mike Benjamin of Baron Law LLC at 216-573-3723. Baron Law LLC is a Cleveland, Ohio area law firm focusing on estate planning and elder law. Mike can also be reached at mike@baronlawcleveland.com.

About the author: Mike E. Benjamin, Esq.

Mike is a contracted attorney at Baron Law LLC who specializes in civil litigation, estate planning, and probate law. He is a member of the Westshore Bar Association, the Ohio State Bar Association, the Cleveland Metropolitan Bar Association, and the Federal Bar Association for the Northern District of Ohio. He can be reached at mike@baronlawcleveland.com.

Disclaimer:

The information contained herein is general in nature, is provided for informational and educational purposes only, and should not be construed as legal or tax advice. The author nor Baron Law LLC cannot and does not guarantee that such information is accurate, complete, or timely. Laws of a particular state or laws that may be applicable in a given situation may impact the applicability, accuracy, or completeness of the preceding information. Further, federal and state laws and regulations are complex and subject to change. Changes in such laws often have material impact on estate planning and tax forecasts. As such, the author and Baron Law LLC make no warranties regarding the herein information or any results arising from its use. Furthermore, the author and Baron Law LLC disclaim any liability arising out of your use of, or any financial position taken in reliance on, such information. As always consult an attorney regarding your specific legal or tax situation.

Estate Planning Attorney - Baron Law

I Need Medicaid, How Can I Keep My Home?

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Baron Law LLC, Cleveland, Ohio, offers information for you to reflect upon while you are setting out looking for an estate planning attorney to help protect as much of your assets as you can. For more comprehensive information contact Baron Law Cleveland to draft your comprehensive estate plan to endeavor to keep more of your assets for your heirs and not hand them over to the government by way of taxes.

Caring for elderly loved ones, yourself or others, is not cheap. Assisted living facilities, nursing homes, and hospice care can easily run thousands of dollars a month and, as such, most people cannot afford to pay for it out of pocket for very long. We’ve all heard the horror stories, people stuck in dilapidated or abusive care facilities or having to spend every last cent just for a bed in a proper facility. No one expects to spend the last years of their lives in such an appalling state, but tragically, it happens more often than you think. To combat this, many resort to relying on government assistance to pay for managed care. To qualify for that assistance, however, many people must “spend down” their assets or reduce their income in order to become eligible for government programs, namely Medicaid.

The thought of having to choose between either having a fire sale and/or willingly living in a crummy facility and/or becoming a burden on your family is hardly an attractive prospect. Everyone wants to pass as much of their money and assets on to friends and family and no one wants to become a burden. Medicaid is well aware of this and imposes a five-year “look back” period for eligibility to ensure that people don’t simply transfer their money and assets away to qualify for government benefits.

There are estate planning strategies available, however, that will allow major assets to stay within the family while still maintaining Medicaid eligibility. The Caregiver Child Exemption, also known as the Adult Child Caregiving Exemption, is perhaps the one of most popular Medicaid planning tools available to preserve assets while maintaining eligibility. An estate planning attorney is in the best position to advise you on the best course of action given your particular circumstances but becoming familiar with the landscape and legal language of Medicaid will help you make the best decisions when the time comes for action.

Why should I care/How does this benefit me?

We are all naturally self-interested, so the first question everyone asks is, how does the Medicaid Caregiver Child Exemption benefit me?

In a nutshell, this is an exemption to the five-year lookback for Medicaid eligibility that can allow you to stay in your home instead of a nursing home or assisted living facility and still receive Medicaid assistance. Regardless of how nice a managed care facility is, everyone is more comfortable in their own home. The Medicaid Caregiver Child Exemption increases the amount of time you can spend in your own home before the realities of your own health force to into a more intensive care facility.

How does the Medicaid Caregiver Child Exemption work?

To qualify for the Exemption, the caregiving child must live in the home with their parent(s) for at least two years prior to the parent becoming eligible for Medicaid benefits. Further, the caregiving child must provide a level of care that effectively prevents the parent for needing to stay in a nursing home or assisted care facility. This at-home care saves the Medicaid program money and frees up much needed bed space in Medicaid approved facilities, hence the reason Medicaid offers the Exemption in the first place.

To effectively understand how the Exemption operates, and exploit it to the fullest extent, one must understand its constituent parts. Note, all the following criteria must be satisfied in order for the Exemption to apply.

What’s a “Child” under the Exemption?

A child under the Exemption is limited only to a biological or legally adopted child. A niece, nephew, grandchild, cousin, aunt, uncle, or stepchild does not count. Medicaid constricts eligible transfers only to direct decedents in order to prevent abuse of the Exemption and because, more often than not, our children are the ones who are going to step up and provide the needed care for parents.

To prove a qualifying family relationship, usually a birth certificate or adoption certificate is used.

What’s a “Home” under the Exemption?

The only “homes” eligible for the Exemption are those of primary residence. No vacation homes, secondary residences, or rental properties. Further, the child caregiver and the parent must reside together for the entirety of the two years. Medicaid wants to ensure the home is actually being used to provide healthcare for the parent in lieu of a managed care facility. If an adult child and parent are living together for an extended period of time, its more likely the Exemption is being used for legitimate purposes rather than a cover for an improper transfer of property.

To prove a qualifying home, evidence such as utility bills, tax returns, of government ID’s for both the parent and child caregiver for at least two years prior to Medicaid eligibility are sufficient.

What’s “Care” under the Exemption?

A child simply living with a parent, cooking meals, doing laundry, picking up medication, is not enough. The amount and manner of care must be enough to establish to Medicaid that the labors of the child caregiver is the reason why the parent isn’t in a nursing home or assisted living facility. If such labor is the difference between the parent staying at home or taking up a bed in a professional facility, then the non-disqualifying transfer of the home to the child is justified.

Establishing the proper level of care is the hardest criteria to prove. This is usually established by having the primary care physician of the parent complete and sign a Medicaid form clearly documenting the care provided by the child. Legal documentation that the care of the child prevented institutionalization of the parent during the two-year lookback is required as well. Any additional documents from family, friends, and medical professionals demonstrating the labors of the child caregiver is beneficial as well.

How to Apply

You don’t file or apply to use the Exemption in the conventional sense. When applying for Medicaid, you also submit the documentation establishing the transfer of your home to your child qualifies for the Exemption. Obtaining the required documentation to prove the applicability of the Exemption is the hardest part. Further, because the burden of proof lies with the applicant, Medicaid will show no leniency for mistakes or omissions.

This is why Medicaid planning and retaining legal counsel is so critical. The Exemption criteria should be met as soon as practical, so the two-year look back can start running as soon as possible. Further, an attorney can ensure all the documentation and forms are properly filled out, executed, and mailed to the proper government agency. Last the thing you want is to find out you have months or years of additional Medicaid ineligibility because an additional penalty period was accrued due to improperly gifting your home to your child.

What if I mess up and the Exemption doesn’t apply?

If the transfer of the home was improper, Medicaid will deny that the Exemption apples, consider the house a qualifying asset, and a penalty period will accrue in proportion to the value of the house. This means on top of the two years that the child caregiver must live with a parent before Medicaid eligibility, a period of further ineligibility is added. This period is determined based on the dollar amount of value of the house divided by either the average monthly private patient rate or daily private patient rate of nursing home care in Ohio.

The home that you lived in for years, if not decades, is one of your most valuable assets, both financially and emotionally. Old age, however, means significant money is needed to live comfortably, even more so in the event of illness or disease. Wise use of the Medicaid Child Caregiver Exemption can cut off years of Medicaid ineligibility and enable comfortable and convenient caregiving for families with ailing parents. Use of the Exemption, however, is not guaranteed and proper steps must be taken. This is why an experienced estate planning attorney can mean the difference between living in your own house receiving much-needed government assistance or waiting years for help or being forced in live in second-rate managed care facilities.

Also, should an elderly individual already be receiving Medicaid benefits, the family should contact a local Cleveland estate planning attorney and find out if the Medicaid Child Caregiver Exemption is still available.

You don’t have to be rich to protect what you’ve spent a lifetime trying to build. To find out whether a trust is right for your family, take the one-minute questionnaire at www.DoIneedaTrust.com. There are a number of different trusts available and the choices are infinite. With every scenario, careful consideration of every trust planning strategy should be considered for the maximum asset protection and tax savings. For more information, you can contact Mike Benjamin of Baron Law LLC at 216-573-3723. Baron Law LLC is a Cleveland, Ohio area law firm focusing on estate planning and elder law. Mike can also be reached at mike@baronlawcleveland.com.

Helping You And Your Loved Ones Plan For The Future

About the author: Mike E. Benjamin, Esq.

Mike is a contracted attorney at Baron Law LLC who specializes in civil litigation, estate planning, and probate law. He is a member of the Westshore Bar Association, the Ohio State Bar Association, the Cleveland Metropolitan Bar Association, and the Federal Bar Association for the Northern District of Ohio. He can be reached at mike@baronlawcleveland.com.

Disclaimer:

The information contained herein is general in nature, is provided for informational and educational purposes only, and should not be construed as legal or tax advice. The author nor Baron Law LLC cannot and does not guarantee that such information is accurate, complete, or timely. Laws of a particular state or laws that may be applicable in a given situation may impact the applicability, accuracy, or completeness of the preceding information. Further, federal and state laws and regulations are complex and subject to change. Changes in such laws often have material impact on estate planning and tax forecasts. As such, the author and Baron Law LLC make no warranties regarding the herein information or any results arising from its use. Furthermore, the author and Baron Law LLC disclaim any liability arising out of your use of, or any financial position taken in reliance on, such information. As always consult an attorney regarding your specific legal or tax situation.

Trust Lawyer Baron Law Cleveland Ohio

How To Use An Ohio Legacy Trust To Protect Family Assets

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Baron Law LLC, Cleveland, Ohio, offers information for you to reflect upon while you are setting out looking for an estate planning attorney to help protect as much of your assets as you can. For more comprehensive information contact Baron Law Cleveland to draft your comprehensive estate plan to endeavor to keep more of your assets for your heirs and not hand them over to the government by way of taxes.

If you have a trust more than eight years old, chances are you were not able to take advantage of an Ohio Legacy Trust. In March of 2013, Ohio became the fifteenth state to allow the use of domestic asset protections trusts, also known as Ohio Legacy Trusts. Legacy trusts are extremely useful in high-risk ventures or occupations such as doctors, entrepreneurs, real estate inventors, and venture capitalists. Legacy trusts give unprecedented control to trust makers and far reaching asset protection. Legacy trusts, however, are not the end all be all. Considering legacy trusts are still relatively new on the Ohio scene, no one can say for certain their permanent place in Ohio estate planning. Further, because the advantages with Ohio legacy trusts are so extreme, the legal hurdles and requirements are, correspondingly, stricter. As such, call your local Cleveland estate planning attorney and see if taking advantage of this relatively new estate planning vehicle is right for you and your goals.

I. What is an Ohio Legacy Trust?

Before 2013, in Ohio, the law was that you could not create a trust for yourself, fund it with your own money, name yourself as a beneficiary, and protect assets within the trust from creditors. Now, however, Ohio law allows a settlor to make an irrevocable trust for the purpose of protecting assets from creditors all the while naming themselves a discretionary beneficiary. Further, other beneficiaries, such as a spouse, children and charities, can also be named. If this sounds powerful to you, that’s because it is.

The main wrinkles with Ohio Legacy Trusts is that a third party, such as a bank or CPA, must be appointed trustee and valid creditors have a statutory opportunity to bring valid creditor claims before the asset protection kicks in. The Ohio Legacy Trust Act states that if 18 months have passed since forming the legacy trust, all future creditors, with some exceptions, that are not yet known will be foreclosed from getting trust assets via a lawsuit. Thus, an Ohio Legacy Trust is not an absolute protection against current creditors, but it does protect against almost all future creditors with respect to the assets placed in trust.

II. Why are Ohio Legacy Trusts used?

Aside from the previously mentioned asset protection, Ohio Legacy Trusts also give trust makers an extraordinary amount of control over trust assets and ability to effect trust management. Makers of Ohio Legacy Trusts can be both the creator and beneficiary and reserve for themselves numerous rights regarding the trust. Trust makers can reserve the following rights for themselves:

The right to receive income and principal from the trust in the trustee’s discretion. For example, the legacy trust could provide that all income is distributed to the beneficiary maker on a regular basis or that the beneficiary maker receives a fixed percentage of trust assets.

The right to withdraw up to 5% of the trust principal each year.

The power to veto a distribution from the trust.

Certain rights to control how trust property will pass to other beneficiaries after the trust maker’s death.

The right to remove and replace trustees and other trust advisors.

The right to occupy real estate and use tangible personal property held as part of the trust assets.

The right to distributions to pay taxes on income generated by the trust, or an interest in receiving such tax distributions in the discretion of the trustee.

The right to serve as investment advisor to the trustee.

III. What are the Requirements of an Ohio Legacy Trust?

In a nutshell, an Ohio legacy trust must have the following characteristics:

1) The trustee must reside in Ohio or be an Ohio entity authorized to do business in Ohio.

2) The trust must be irrevocable.

3) The settlor, i.e. trust maker, must draft and execute an affidavit of solvency, sometimes called an affidavit of disposition, swearing the following:

* The assets to be used to fund the trust are not from illegal activity,

* The settlor is the rightful owner of the assets,

* The settlor does not intend to file for bankruptcy,

* The settlor is not a party of any unidentified court or administrative proceedings,

* The settlor will not be rendered insolvent after the contemplated assets are used to fund the trust, and

* The settlor is not transferring assets to the trust with the intent to defraud creditors.

IV. What can an Ohio Legacy Trust not do?

Though the powers of Ohio Legacy Trusts are expansive, they are not without limitation. An Ohio Legacy Trust cannot be used with the intent to defraud creditors. Further, it is a hard rule in Ohio law that these trusts do not protect against child support and alimony support claims. Furthermore, a settlor cannot make themselves insolvent while funding the trust and the trust cannot give a settlor the power to revoke the trust. Also, being that Ohio Legacy Trusts are grantor trusts, the settlor is responsible for paying income tax on all money generated by the trust.

Ohio Legacy Trusts are a great new tool to utilize for the right estate planner, but their use is not without risk. Assets placed in trust are no longer in the settlor’s direct control and it is no guarantee that these trusts will be recognized in other states. The biggest drawback is that Ohio Legacy Trusts only protect against future creditors, not current ones. That said, Ohio Legacy Trusts are an option that should be explored by anyone looking to protect their assets and increase the longevity of such assets. Contact an experienced Cleveland estate planning attorney and find out more about these trusts and how they can work for you.

Helping You And Your Loved Ones Plan For The Future


About the author: Mike E. Benjamin, Esq.

Mike is an attorney at Baron Law LLC who specializes in civil litigation, estate planning, and probate law. He is a member of the Westshore Bar Association, the Ohio State Bar Association, the Cleveland Metropolitan Bar Association, and the Federal Bar Association for the Northern District of Ohio. He can be reached at mike@baronlawcleveland.com.

Disclaimer:

The information contained herein is general in nature, is provided for informational and educational purposes only, and should not be construed as legal or tax advice. The author nor Baron Law LLC cannot and does not guarantee that such information is accurate, complete, or timely. Laws of a particular state or laws that may be applicable in a given situation may impact the applicability, accuracy, or completeness of the preceding information. Further, federal and state laws and regulations are complex and subject to change. Changes in such laws often have material impact on estate planning and tax forecasts. As such, the author and Baron Law LLC make no warranties regarding the herein information or any results arising from its use. Furthermore, the author and Baron Law LLC disclaim any liability arising out of your use of, or any financial position taken in reliance on, such information. As always consult an attorney regarding your specific legal or tax situation.

Baron Law Cleveland Ohio

What If My Trustee Is Concealing Trust Assets?

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Cleveland, Ohio, estate planning law firm, Baron Law LLC, Cleveland, Ohio, offers information for you to reflect upon while you are setting out looking for an estate planning attorney to help protect as much of your assets as you can.   For more comprehensive information contact Baron Law Cleveland to draft your comprehensive estate plan to endeavor […]

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Estate Planning Lawyer Baron Law Cleveland

Executor’s Duties – When Should Debts Be Paid?

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Cleveland, Ohio, estate planning law firm, Baron Law LLC, Cleveland, Ohio, offers the following information on what your duties are as an executor of an estates and  when you need to pay all debts of the estate.   Contact Baron Law Cleveland to answer all your questions on what your duties are and to help guide your through […]

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Baron Law Cleveland Attorney

I’ve Been Named As The Executor In A Will, Now What?

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Cleveland, Ohio, estate planning law firm, Baron Law LLC, Cleveland, Ohio, offers the following information on what your duties are as an executor of an estate.  Contact Baron Law Cleveland to answer all your questions on what your duties are and to help guide your through the  upcoming events which are about to occur and how to handle any issues which may arise.

Unfortunately, a close friend or family member has passed and in their will you were appointed as executor of their estate. At the time the will was drafted maybe you gave little or a lot of thought into what being named executor actually entails. Often, it’s the former, most people have little experience administrating an estate and little reason to overthink being named an executor. So, when the time comes to handle the responsibilities of an executor, it can be a confusing and overwhelming process.

An appointment to executor is a serious affair, but an understanding of the process and expectations of an executor can limit the stress of an already stressful situation. Since most people have little experience with wills, estates, or probate, everyone finds themselves asking the same questions when they remember they’re an executor. Note, this article is only a minor overview and contacting a Cleveland estate planning attorney in event of death or a potential or actual appointment as executor is always recommended. An experienced Ohio estate planning attorney can give you personalized guidance and recommendations to take as much of the burden off you as possible.

 

What is an executor?

Bluntly, an executor is the person, or persons, named in a will to administrate the estate after death. The executor is the individual responsible for seeing that the final wishes of the decedent, as denoted in the will, are carried out. The appointment of an executor is a logical, and necessary, consequence for the existence of last will and testaments. At the end of the day, wills are only pieces of paper. So, without someone loyal, trustworthy, and actually willing to carry out the terms of a will, a will would be a paper tiger and estate assets wouldn’t be distributed nor posthumous debts and obligations handled. So, if you’ve been named as an executor, congratulations, you’re likely the most responsible and well-adjusted of the decedent’s friends and family.

 

How is an executor appointed?

Executors are formally appointed as such by explicit provision in a last will and testament. Hopefully, the will holder informs the named individual of their selection of executor, but this is not a strict requirement, just courtesy and commonsense.

Just being named as executor in a will, however, is not sufficient to confer the job. When the will is probated, the following statutory requirements are observed by the court when selecting an executor:

  1. The named individual must be competent to serve as executor.
  2. The named individual must be at least 18 years old
  3. The named individual must be bonded

Implicit within the bond requirement is that the named executor has good credit and no criminal record, since failure of either would likely make it next to impossible in convincing an insurance company to take the increased risk and issue an executor bond. The cost of the bond itself is paid from estate assets. Note, however, a will has the discretion to waive the bond requirement if the decedent has faith that the named executor is trustworthy and doesn’t represent a risk of pillaging or mismanaging estate assets.

As with many things within the legal system, the final approval for executor appointment lies with the probate court. So, regardless of whether the formal requirements are met, a probate court may still reject an executor election and appoint a third-party administrator if a potential executor is perceived as unfit to serve. Since, a major purpose of drafting a will is to control who distributes estate assets, naming an Ohio estate attorney as a primary or successor executor is advisable as a probate court would have little reason to protest such an appointment.

Why is an executor needed?

The duties of an executor aren’t easy, however, there is satisfaction knowing that you did right by your friend or family. The duties of an executor are specific to each particular estate, however, there is a “core” group of duties and tasks each executor must fulfill. Every executor must:

  1. File the will and probate petition in probate court where decedent was domiciled at time of death and petition the court for executor appointment.
  2. Take possession, catalogue, and value all estate property within 3 months of filing the will for probate.
  3. Maintain and protect estate assets for the duration of the probate proceedings.
  4. Directly notify creditors, debtors, financial institutions, utilities, and government agencies of decedent’s death.
  5. Publish notices of decedent’s death, usually a newspaper obituary, which serves as notice and starts the clock running on the statute of limitations for creditor claims on the estate.
  6. Pay or satisfy any outstanding debts or obligations of decedent.
  7. Represent decedent during probate court proceedings.
  8. Locate heirs and named beneficiaries and distribute respective bequests at the appropriate time.

These duties occur during the probate process, which is a major reason why probate takes many months to complete. Because probate is such a time-intensive and laborious process, many people chose trust-based estate plans that avoid probate entirely. With trusts, estate assets can be distributed right away, no executor is needed, and many mornings, which otherwise would be spent in probate court, are freed for personal enjoyment. Contact an Ohio trust attorney to see if avoiding probate through the use of trusts is right for you and your family.

What if some dies without a will so that there isn’t an executor?

If someone dies without a will, i.e. intestate, the probate court will appoint an administrator for the estate. The formal requirements for an administrator are the same as an executor except administrators must be also an Ohio resident while executors can be anyone. The duties administrators perform are largely the same as executors.

Granted, the final result of the probate process is the same regardless of whether an estate is administrated by an executor or appointed administrator, however, who knows who the court ultimately will appoint. As such, it is always preferable to elect an executor an ensure a responsible and diligent friend or family member will manage your estate and see that final wishes are followed. Those living without a will or trust are playing with fire and could end up seeing significant portions of lifetime earnings or assets going to irresponsible family members or eaten by taxes.

If I’ve been named as an executor, do I have to be one?

No, there is no legal requirement to take on the responsibilities of executor, however, resigning will likely put the surviving family in a serious bind and force a probate court to appoint an administrator. An executor resignation, prior to or during probate proceedings, must follow established procedures and use particular legal forms specific to each probate jurisdiction. Consulting an estate attorney is the best way to find out what these procedures are and if resigning is necessary in the circumstances.

Executor appointment is not a job to underestimate. Often, the labor and time spent in fulfilling the duties go underappreciated, but it is critical to wrapping up decedent’s life and giving closure to friends and family. Though sometimes thankless, executors are entitled to compensation in Ohio. Namely, if executor sells real estate or personal property, they are entitled to 4% of the first $100,000, 3% of the next $300,000, and 2% of any remaining value. Further, 1% may be charged for any non-probate assets. Executor fees and the associated tax consequences are potentially complex issues, as such, contacting a Cleveland estate attorney is sensible.

For more information, you can contact Mike Benjamin of Baron Law LLC at 216-573-3723. Baron Law LLC is a Cleveland, Ohio area law firm focusing on estate planning and elder law. Mike can also be reached at mike@baronlawcleveland.com.

 

Helping You and Your Loved Ones Plan for the Future.

 

About the author: Mike E. Benjamin, Esq.

Mike is a contracted attorney at Baron Law LLC who specializes in civil litigation, estate planning, and probate law. He is a member of the Westshore Bar Association, the Ohio State Bar Association, the Cleveland Metropolitan Bar Association, and the Federal Bar Association for the Northern District of Ohio. He can be reached at mike@baronlawcleveland.com.

Disclaimer:
The information contained herein is general in nature, is provided for informational and educational purposes only, and should not be construed as legal or tax advice. The author nor Baron Law LLC cannot and does not guarantee that such information is accurate, complete, or timely. Laws of a particular state or laws that may be applicable in a given situation may impact the applicability, accuracy, or completeness of the preceding information. Further, federal and state laws and regulations are complex and subject to change. Changes in such laws often have material impact on estate planning and tax forecasts. As such, the author and Baron Law LLC make no warranties regarding the herein information or any results arising from its use. Furthermore, the author and Baron Law LLC disclaim any liability arising out of your use of, or any financial position taken in reliance on, such information. As always consult an attorney regarding your specific legal or tax situation.
“He who is always his own counselor will often have a fool for his client.” Old English Proverb est. circa

 

Baron Law Cleveland

Estate Planning – Documents I Should Provide My Attorney

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Cleveland, Ohio, estate planning lawyer, Daniel A. Baron, Ohio, offers the following information on what documents are necessary for you to provide your attorney when sitting down to establish your comprehensive estate plan.

“Be prepared.” Boy Scouts of America

A recent survey taken by the AARP found that 3 out of every 5 Americans have no estate-planning documents, not even a simple will. Thus, money and assets they’ve spent a lifetime earning and saving are at risk from creditors, litigation, and state and federal taxation. Further, none of their friends or family know how to handle their affairs or last wishes. Even though the majority of people have not taken the necessary steps to formulate a plan when the inevitable comes, all can agree that leaving friends and family to scramble to pay your debts, settle your accounts, and divide your worldly possessions is not the best way. A time of mourning should be just that, for mourning, not for calling bankers, insurance agents, or accountants.

Hopefully, you’ve decided to take the first step and enter into the minority of Americans who proactively address what is left behind when they pass. However, a familiar question exists, how do I get started? That is, what do I need to start planning my estate?

Most, if not all, lawyers are traditional, they like things they can touch and read. So, before you meet with your attorney to plan your estate, you’re going to want to bring a few things. The following list is by no means exhaustive but will give you a good start. Collecting these documents before your meeting will save everyone time, allow your attorney to better comprehend your personal estate planning needs, and prepare you mentally so you can better communicate what you want and what your family needs out of your estate plan.

A General Accounting of your Estate

The word estate is a term that denotes all of the money, property, and debts owned by person, particularly at death. Naturally in order to plan an estate, it must be known what an estate actually encompasses. Therefore, on a piece of paper or computer spreadsheet, your going to write out your estate.

List out: your taxable accounts, your retirement accounts, any life insurance policies, any annuities, your personal residence, other real estate, any highly significant personal property (cars, furniture, artwork, jewelry, etc.), business interests, and any outstanding debts, liabilities, or obligations. For each category, split them up between those owned solely by you, those owned solely by your spouse (if married or part of a civil union), and those owned jointly.

This information is critical for tax projections and allows your attorney to take the necessary steps now, or at death, to ensure that the most property and money goes to where you want and not lost via government taxation, creditors, or litigation. There is a multitude of ways your attorney ensures estate preservation, however, knowing exactly what you have and what you want to do with it is critical. Note that this list only serves as an estimate of your estate, not an exact accounting. Your attorney will be able to advise and guide you on obtaining an accurate picture of your entire estate but this list will be the foundation for future calculations.

Life Insurance Policies

Life insurance is a common tool people use to guarantee their surviving family won’t be left in an untenable financial position in the event of death. The lump sum that life insurance proceeds guarantee can fill critical gaps in an estate plan and ensure that your loved ones are taken care of and your affairs are handled in a respectable manner. This is only possible, however, if the proper beneficiaries are designated. If not, who knows how your proceeds are spent. Therefore, ensuring the proper beneficiaries are denoted and/or updated on your insurance policies is of utmost importance. Make sure to have your attorney review your beneficiaries and file any change of beneficiary forms you desire.

Of further note for seniors, some life insurance policies, such as whole life or universal, accrue cash value which may affect Medicaid eligibility. The accumulation of cash value under particular life insurance policies counts as an asset, which if exceeds $2,000 may disqualify a person from Medicaid. Again, this is something to bring to your attorney’s attention so your estate plan can be more personalized to your needs.

Additionally, life insurance policies are often part of your taxable estate. As such, proper steps during estate planning must be undertaken to lower or avoid the tax burden on the estate. Named beneficiaries of life insurance proceeds may also face significant tax consequences from a sudden influx of cash. As such, bringing your life insurance policies to your estate attorney allows him to understand the type of insurance you possess and avoid issues with regard to beneficiary designations, Medicaid eligibility, and estate tax consequences.

Investment Portfolio

You’re also going to bring your investment portfolio to your attorney. That is, anything evidencing your 401k, owned annuities, stocks, bonds, or mutual funds, and other retirement accounts such as IRAs and Roth IRAs, regardless of whether the IRS classifies them as qualified or unqualified plans. Your investment portfolio is likely a major asset that is a significant part of your taxable estate and whose constituent parts each often have their own special rules regarding contributions, distributions, transfers, and inheritance. Bringing your investment documents to your attorney will allow him to plan your estate accordingly and inform you of the special rules, privileges, and schedules applicable to the particular investment instruments you’ve chosen.

A List of Important Property with Bequests

Generally, this is what most people think of when talking estate planning, who gets the house and who gets grandma’s heirloom necklace. In order to avoid any conflict and confusion between surviving family members over who gets what when you pass, write out a list of the biggest and most important bequests of personal and real property.

Most people list out vehicles, real estate, business interests, family heirlooms, expensive electronics, art work, etc. Pretty much anything that has high sentimental or financial value. Obviously for each item on the list write who gets what and in what way. For simple property, like jewelry, usually an individual gets a direct bequest and the item is theirs when you pass. For other property, such as real estate or business interests, usually these are split up in particular ways. For example, a business being split equally between surviving children or a house passing only to children of a first marriage. Your attorney will inform you of the multitude of ways bequests may be structured in order to satisfy your particular estate planning needs.

Thinking about and writing out your property bequests ensures your final wishes are followed and avoids familial infighting. On top of bringing this list to your attorney, bring any deeds, titles, or other ownership documents. This will expedite an estate accounting after your death for your executor and makes sure you actually own what you think you do. Far too many times families are taken by surprise by a faulty title or hidden lien or claimant on a deed. Your attorney can easily check a chain of title or confirm the validity of a deed and avoid any question of ownership down the line.

A “Managed Care Plan”

This is not to be confused with the private insurance plan you sign up for, or Ohio picks for you, when you apply and are approved for Medicaid. Managed care plans within the context of Medicaid private insurance isn’t the subject here, however, it is an important subject that should be discussed and planned for with your attorney.

Within this context, your managed care plan means a coherent idea of where and how you want to spend the last years of your life, especially in the event of deteriorating health or debilitating disease. That is, the logistics, finances, and questions surrounding issues of hospice care, managed care facilities, nursing homes, and general living as one advances in age.

For example, planning out your senior living situation will likely enable you to stay with your primary care physician and specialists longer. Often the accessibility of physicians and medical specialists are subject to geographic restriction, insurance coverage, or out-of-pocket cost. A proper estate plan can guarantee the funds exist to support continued care in the manner you’ve grown accustomed to and communicate to friends and family your medical wishes far in advance of when those questions arise. Never underestimate the value of spending the autumn of your years in clean and comfortable healthcare facilities with treatment from doctors that have an established relationship. As such, bring any contracts, agreements, or marketing materials of any health or senior living facilities you wish to go to. Every piece of information allows further personalization of your estate plan and more clearly communicates what you want to your family many years down the road.

Further, bring important legal documents such as designations for durable, health, or financial powers of attorney, any do not resuscitate orders (DNRs), and executor and administrator elections. If you don’t have any of these documents prepared, these can easily be drafted by your attorney during your estate planning.

Americans are living longer than ever before and having a plan to confront advancing age is important to ensure comfortable living and piece of mind for the family. Granted this is not an enjoyable or fun aspect of life to think about and plan out, but it is something you and your family will never regret.

Conclusion:

Bringing the listed documents and gathering up your thoughts according to the issues highlighted will give you a good head start in preparation to planning your estate with your attorney. Again, this list is not exhaustive and only touches on a fraction of the issues that addressed during estate planning. Major issues such as surviving spousal support and guardianship of minor children, among many others, must be handled too, so think about these issues as well. Estate planning is a complex process but taking a little time to gather documents and think about the future will pay big dividends to you while you’re here and make life much easier for your family when you’re not.

You don’t have to be rich to protect what you’ve spent a lifetime trying to build. To find out whether a trust is right for your family, take the one-minute questionnaire at www.DoIneedaTrust.com. There are a number of different trusts available and the choices are infinite. With every scenario, careful consideration of every trust planning strategy should be considered for the maximum asset protection and tax savings.

For more information, you can contact Dan A. Baron of Baron Law LLC at 216-573-3723. Baron Law LLC is a Cleveland, Ohio area law firm focusing on estate planning and elder law. Dan can also be reached at dan@baronlawcleveland.com.

Helping You and Your Loved Ones Plan for the Future.

About the author: Mike E. Benjamin, Esq.

Mike is a contracted attorney at Baron Law LLC who specializes in civil litigation, estate planning, and probate law. He is a member of the Westshore Bar Association, the Ohio State Bar Association, the Cleveland Metropolitan Bar Association, and the Federal Bar Association for the Northern District of Ohio. He can be reached at mike@baronlawcleveland.com.

Disclaimer:
The information contained herein is general in nature, is provided for informational and educational purposes only, and should not be construed as legal or tax advice. The author nor Baron Law LLC cannot and does not guarantee that such information is accurate, complete, or timely. Laws of a particular state or laws that may be applicable in a given situation may impact the applicability, accuracy, or completeness of the preceding information. Further, federal and state laws and regulations are complex and subject to change. Changes in such laws often have material impact on estate planning and tax forecasts. As such, the author and Baron Law LLC make no warranties regarding the herein information or any results arising from its use. Furthermore, the author and Baron Law LLC disclaim any liability arising out of your use of, or any financial position taken in reliance on, such information. As always consult an attorney regarding your specific legal or tax situation.
“He who is always his own counselor will often have a fool for his client.” Old English Proverb est. circa 1809.