Estate Planning

Estate Planning:

Wills and Trusts: The Basics Estate Planning Webinar Series • Powers of Attorney & Medical Directives • Why I Should Have An Estate Plan • Wills and Trusts - The Basics: Wills and Trusts, the differences and execution requirements. The webinar will also provide an overview as to why a trust may be necessary. • All presentations can be found at www.brouse.com

2 Estate Planning Blog

For additional information, see https://www.brouse.com/trusts-estates-blog

3 Disclaimer

• Any opinions offered are our own and not those of Brouse McDowell LPA. This presentation is provided for general informational and educational purposes only. No information contained in this presentation is to be construed as legal advice. This presentation is not a contract for legal advice and does not establish an attorney-client relationship. • Entering into an attorney-client relationship is a mutual agreement, requiring the exchange of information and the execution of an engagement letter between the client and Brouse McDowell LPA.

4 INTRODUCTION

Wills and Trusts: The Basics What’s Important to You?

6 Estate Planning is for people

7 Estate Planning is for property

8 You need the proper Documents

9 What Are Estate Planning Documents?

-Durable Power of Attorney -Health Care Power of Attorney and Living Will -Last Will and Testament -Trust

10 WHY DO I NEED A WILL AND/OR TRUST? Essential Documents: Last Will and Testament Last Will and Testament- Your Last Will and Testament provides for the distribution of your probate assets, nomination of a guardian for your minor children and designates an Executor who is responsible for finalizing your estate. It is important to keep in mind that a Last Will and Testament only controls probate assets, which are assets that do not have a beneficiary, are not jointly owned with rights of survivorship or are not placed in trust during your life. An Executor’s duties include collecting all probate assets, paying debts, estate taxes, if any, and final expenses, preparing final tax returns, and distributing the remaining balance to the beneficiaries.

Essential Documents: Last Will and Testament: Signing Requirements- Signed at the end by the Testator whose signature is attested and subscribed in the conscious presence of the Testator by two or more competent and disinterested witnesses who witnessed the execution of the document by the Testator or heard the Testator acknowledge his or her signature.

13 Last Will and Testament: What Does It Do?

-Memorializes your wishes as to disposition of property that is titled in your name without a beneficiary designation or joint owner with rights of survivorship -Nominates individuals to serve as guardian of your minor children -Becomes public record when it is filed with the Probate Court upon your death

Essential Documents: Trust Agreements Trust Agreement- There are many types of trust agreements to achieve your estate planning goals and objectives. Trusts can be irrevocable or revocable and can be used to protect and preserve your assets, to make gifts to your children without giving them control over the gift, to reduce or eliminate estate taxes, to retain assets until a beneficiary reaches a certain age or for the beneficiary’s lifetime, to provide support for disabled beneficiaries and afford privacy. Trusts are also used to implement sophisticated and complex business succession and charitable giving plans. Careful consideration should be given to the designation of your Trustee as the Trustee will oversee the trust (including the investment of trust assets) be responsible for payment of expenses, ensure that tax returns are filed, and disburse the trust assets pursuant to the terms of the trust agreement.

15 Essential Documents: Trust Agreements Signing Requirements- Signed at the end by the Settlor and, typically, the Settlor’s signature is witnessed and signed by two (2) disinterested witnesses and/or executed by the Settlor in the presence of a Notary Public. However, there is no statutory requirement in Ohio that a Settlor’s signature must be witnessed or notarized for a trust agreement or trust amendment to be effective but it will make it much more difficult to withstand challenges by an unhappy beneficiary if the Settlor’s signature is neither witnessed nor notarized.

16 Trust Agreements: What Do They Do? -Irrevocable v. revocable -Beneficiaries and ages for distributions -Creditor protection -Tax benefits -Charitable bequests

17 Wills and Trusts: Differences: Why Both Are Needed -Will disposes of assets under the jurisdiction of the probate court in a shorter length of time -Will is still necessary to designate guardian of minor children, transfer assets not in the trust, provide Executor should lawsuit (such as wrongful death claims) be necessary -Trust affords privacy, ability to provide and protect loved ones and potential tax benefits

18 Wills and Trusts: Integrating Your Estate Plan -Review current estate plan and assets -Review assets in light of objectives -Discuss objectives and wishes for your estate plan -Providing and protecting children/beneficiaries -Creditor and asset protection -Reduction or elimination of estate taxes by maximizing deductions and credits -Business succession planning -Charitable bequests 19 Property Ownership: Understanding The Different Types -Analyze and review probate v. non-probate assets -Important because beneficiary designations supersede a Last Will and Testament and/or Trust Agreement -Determine ownership, beneficiaries and how assets are titled such as sole ownership, joint with rights of survivorship, transfer on death or payable on death

20 Asset Titling: Completing The Plan -Important to ensure that your estate plan is followed -Once an estate plan is in place, the final step is to title assets in the trust or make sure the beneficiary designations on accounts, IRA’s, real property is in line with the estate plan and your objectives and goals -Recommendations on where to keep original documents -Follow up and review at least every three (3) years or when a significant change occurs in your life -your health, the health of a family member or a beneficiary changes -your assets change significantly -change in your family situation or that of a beneficiary

21 -changes in estate, gift and tax law

Closing Thoughts

The current coronavirus pandemic has brought to the forefront the importance of estate planning documents and implementing an estate plan. One of the most important things you can do for yourself and your family is to work with an experienced estate planning attorney to prepare an estate plan to ensure your objectives and wishes are met and provide peace of mind that your family is protected.

22 Next Up

Please continue to follow us for future updates, webinars, client advisories and blogs at: www.brouse.com

23 Thank you!

Lori R. Kilpeck Julie E. Firestone 600 Superior Ave. E, Suite 1600 388 S. Main Street, Suite 500 Cleveland, Ohio 44114 Akron, Ohio 44311 [email protected] [email protected]