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
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Estate Planning
Blog
For additional information, see
https://www.brouse.com/trusts-estates-blog
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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.
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INTRODUCTION
Wills and Trusts: The Basics
What’s
Important to You?
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Estate Planning
is for people
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Estate Planning
is for property
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You need the proper
Documents
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What Are Estate Planning Documents?
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-Durable Power of Attorney
-Health Care Power of Attorney and Living Will
-Last Will and Testament
-Trust
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.
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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.
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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
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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.
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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.
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Trust Agreements:
What Do They Do? -Irrevocable v. revocable
-Beneficiaries and ages for distributions
-Creditor protection
-Tax benefits
-Charitable bequests
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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
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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
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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
-changes in estate, gift and tax law
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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.
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Next Up
Please continue to follow us for future updates,
webinars, client advisories and blogs at:
www.brouse.com
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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]
© 2020 Brouse McDowell - 1092048
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