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When creating your estate plan, most resources will focus on the steps needed to create one. How does one make a will or a trust? Who can be nominated as a durable power of attorney? How can assets be divided fairly and in accordance with the relevant state laws and probate processes? However, what happens after creating your estate plan can often be just as important as what you do while making it.
Estate plans are not static, and as life changes, an individual may find that the estate plan they created years ago no longer reflects their life circumstances. In this post, we’ll provide some insight into how maintaining and continuing to build on your estate plan can be key to leaving a lasting legacy to those who come after.
Most estate planning documents are not designed to adapt and change on their own. Some estate planning features such as irrevocable trusts are unable to be changed once they have been created. While this may provide some benefits, it also means that estate planning is an ongoing process.
Documents such as wills and revocable trusts often reflect a snapshot of a person’s life. This often serves its purpose well, but as time goes on, many people may return to their old estate plans and find that it no longer reflects their life circumstances or desires. When creating your estate plan, updating and adjusting documents regularly may be able to help ensure a more preferable outcome.
When constructing your estate plan, there are often various documents that must be signed and handled properly to be legal. Specifically for wills, this may require the presence of non-beneficiary witnesses to ensure the mental competence of the testator. Notarization of a will may also provide an additional level of credibility to the document, but that step may not be necessary in Ohio.
Additionally, many other documents in your estate plan may require signing or witnessing. Each specific piece of an estate plan may require different proofs of their authenticity. Therefore, being aware of the requirements for each specific document may help ensure that the estate plan is followed correctly.
Additionally, certain residents of Ohio may be eligible for the Ohio Homestead Exemption, which decreases property tax if the individual and their property are eligible. Individuals who are over 65 and meet certain income thresholds are eligible, as well as homeowners with certain disabilities, veterans with a 100% disability rating, and spouses of first responders who died in the line of duty. For homeowners who are over 65 years old or meet certain disability requirements, they may also need to meet an income threshold of less than $36,100 for 2023 or $38,600 for 2024.
Another important step to take after finalizing your estate plan is to find a safe and secure location for these important documents. Many organizations and legal entities will only honor the official document, which means that preserving estate planning documents may help an executor avoid additional trouble when putting an estate in order.
Ideally, finding a secure location that is protected from any potential disasters such as fires, earthquakes, and storms. Additionally, having a locked safe could help prevent damage from theft or other hazards. A bank’s safe deposit box or the care of a legal professional may suffice for this.
Additionally, while many people will designate their beneficiaries for various assets during the estate planning process, this is not necessarily the end of the process for estate planning. Notifying and informing loved ones and beneficiaries of your intentions may help smooth over any future conflict over assets. Having open lines of communication is often valuable, especially when distributing assets that have high monetary value.
When finalizing your estate plan, one may also benefit from keeping accurate financial records and appraisals of relevant assets. According to the Ohio Revised Code § 2109.301, an administrator or executor of a will or other estate planning account may need to render a full explanation of the distribution of assets on behalf of the decedent. For the executor interacting with the probate courts, having a clear record may help eliminate roadblocks in the process.
Just as with housing arrangements, community situations, and other large facets of a person’s life, what you may look for in your estate plan will often change with time. Rarely will an estate plan be one-size-fits-all, catering to an individual’s needs and reflecting their interests for the rest of their life. Therefore, understanding how and being prepared to update your estate plan may be crucial to ensuring a lasting legacy.
Revisiting your estate plan regularly may help to guide and direct the contents of a will or trust to protect your interest, but certain unusual circumstances may warrant a closer look. Large and drastic life changes may render previous decisions in an estate plan obsolete. Whenever life takes an unexpected turn, it may be wise to revisit your estate plan and make small adjustments.
Many people name their children as beneficiaries in a will. Upon the birth or adoption of a new child, you may wish to revisit your estate plan and adjust your bequests to reflect a new member of the family. Making these adjustments can help ensure that each child is represented fully in an estate plan and can carry on both heirlooms and the care and affection of their parents.
Changes in marital status often deeply affect estate plans and may warrant significant changes in your estate plan. In the case of a divorce, this change in status will often affect significant beneficiary designations or even executor designations, as many people will trust their spouse with much of their financial authority in case of their death. Additionally, marriage may warrant an adjusted will that reflects a spouse’s role in their life.
Creating your estate plan is rarely a one-and-done process. Wills, trusts, and other estate planning documents often require frequent maintenance and adjustments to reflect changing life circumstances. Knowing when and how to make these changes may help avoid unnecessary stress and help you feel secure about your estate plan. For more information, consider speaking with a skilled estate planning team at Rhodium Law. Schedule a consultation today by calling (216) 699-8145, or by using the self-schedule tool on our website.
