Assess Your Assets and Liabilities
Compile a list of your assets, including bank accounts, investments, real estate, and personal property, as well as any debts or liabilities.
Compile a list of your assets, including bank accounts, investments, real estate, and personal property, as well as any debts or liabilities.
Consider your goals for estate planning, whether it’s providing for your family, minimizing taxes, or supporting charitable causes.
Estate planning can be complex, so seek guidance from qualified professionals such as estate planning attorneys, financial advisors, and tax experts who can help you navigate the process and ensure your plan aligns with your goals.
Under the guidance of a qualified professional, create a draft plan that meets your unique goals and objectives.
Follow any applicable legal requirements to finalize your plan, and make sure to fund any trusts that you have established.
Life circumstances and laws change over time, so it’s essential to review and update your estate plan regularly to reflect any major life events or legislative changes.
At Rhodium Law, we know that estate planning can be difficult. That is why we do all that we can to make the process as smooth and simple as possible while also ensuring that each individual’s estate plan is carefully crafted to meet their specific needs and desires. This begins with a consultation to discuss the individual’s needs and which components of an estate plan they may already have in place.
A Last Will and Testament, more commonly referred to as a will, is a document that allows the will-writer, or testator, to direct their assets to specific individuals or entities (such as charities or other organizations that are meaningful to the individual) after their death. A will ensures that an individual’s estate is distributed according to their wishes. Without a will, the individual’s estate will be distributed according to Ohio state law, which may not align with what the individual would have wanted.
A living trust is a legal document that allows the individual to give ownership of their assets to a trust. The trust is overseen by a trustee, who may be the individual or someone else they trust, and the individual often retains control over the assets. The terms of the trust are provided in the legal document, allowing the individual to stipulate what can be done with the assets, who may benefit from the assets, and if the assets are used to create an income, how that income is distributed.
The use of the word “will” in a living will often confuses people into thinking this is a form of Last Will and Testament, but it is not. In fact, a living will is an advanced directive. This is a document that allows an individual to detail their wishes for what kind of care they want to receive if they are terminally ill or permanently unconscious and can no longer communicate their wishes. This document allows them to indicate how they wish to live and die under these circumstances.
Many, if not most, of an individual’s assets are financial. Life insurance, bank accounts, retirement accounts, investment accounts, and other assets allow the owner to indicate a beneficiary who receives the money from the asset when the owner dies. Beneficiaries do not have to go through probate before collecting the money from the policy or account. These are often used to provide specific loved ones with the money they may need quickly or for specific purposes. By designating beneficiaries for these policies and accounts, they are protected from creditors and in some cases, can also help to provide more equitable inheritances.
Letters of intent, also known as letters of instruction, are non-legal documents. This means that legally if the estate owner leaves specific instructions in the letter, they do not have to be followed. However, letters of intent allow the estate owner to spell out their intentions with their decisions. The individual can reduce uncertainty or confusion by explaining the context behind their decisions. This may cut down on disputes. They can also clarify their intentions, such as explaining what certain terms mean, and provide guidance with an explanation of their financial legacy and how they would like to see their loved ones manage or use their assets.
For individuals with minor children or who have disabled adult dependents, individuals may use guardianship designations to inform the court who should have custody of their children or dependents when they die. These designations may also be used to designate a guardian for the estate owner if they become incapacitated. However, the court may not appoint the guardian designated in the estate plan. There are many factors that are considered in this decision. By having a guardian designated in the estate plan, the individual increases the chances that the court will appoint the guardian they have chosen.
Even if you already have some or all of these documents in place, the terms can become outdated quickly. With life events come the necessity to update your estate plan, and Rhodium Law can carefully review your current plan and address any changes you wish to make to ensure your estate plan reflects your current wishes and life circumstances. Connect with an Ohio estate planning lawyer today!
Perhaps the most important aspect of creating a comprehensive estate plan is the peace of mind it provides for the individual and their loved ones. Estate plans should be reviewed every three to five years to ensure everything is still accurate, including the names of heirs, beneficiaries, and guardians as well as the addition or deletion of any assets bought or sold. However, once created, both the individual and their loved ones can relax, knowing that whatever comes in the future, a plan is in place and the individual’s wishes are documented.
