The types of items one chooses to keep in a safety deposit box can vary, but here are some common ones:

• Birth certificates
• Marriage certificates
• Social Security card
• Copy of your will
• Copies of degrees and professional licenses
• Copies of divorce or separation papers
• Military records
• Deeds, titles, and insurance for real estate
• Deeds, title, and insurance for vehicles
• Valuable assets you don’t need to access (jewelry, coins, guns, etc.)
• Stock certificates and bonds
• Business documents

The safe deposit box is intended to keep your important items somewhere secure, but there are some that you need to access more easily than through a trip to the bank.  When you talk with your estate planning attorney, he or she will help you understand when you should have copies of certain documents available to you at home, as well as in your safe deposit box.

Access to Your Safe Deposit Box

For obvious reasons, access to your safe deposit is strictly limited.  If you want to make it accessible to another person, you’ll have to have them accompany you to the bank so that the proper ID can be shown and they can sign a signature card. This usually means that he or she now has access to your safe deposit box at any time.

You may be able to limit the access by foregoing the trip to the bank and naming the person as an executor of your trust.  When the time comes, he or she can take the appropriate documentation to the bank and be granted access.  This may require a certified copy of your death certificate along with the individual’s own identification.

As you can imagine, there are some documents that need to be accessed immediately if you should become incapacitated or deceased.  It is typically of utmost importance for medical directives and guardianships of minor children to be produced, for example.  Because it can take a fair amount of time to obtain these things from a safe deposit box, an alternate plan needs to be in place.

Your probate attorney in Northeast Ohio will be able to offer insight into how best to make these documents accessible at the right times and by the appropriate people.  Keeping copies in your safe deposit box is still a good idea, however, to ensure that they are protected in case some sort of catastrophic event (like a house fire) were to damage other copies or originals.  You will also benefit from talking directly to the employees at your bank to fully understand their policies.

In order to ensure that your estate plans still fit your needs, you should review them at the beginning of every year.  There are certain life changes that can have a huge overall affect on your estate planning, so taking the time to accommodate those changes now will save a significant amount of difficulty later.  Have you experienced any of the following in the last year (or longer, if you haven’t updated your plans in a while)?  If so, you’ll want to set up a time to chat with your Northeast Ohio wills and trusts attorney right away.

1. Did you experience a change in marital status?  If you were married, divorced, or widowed in the previous year, then you will need to update your estate plans to reflect this.  It may be necessary to change beneficiaries.  Most people who go through a divorce will want to change their wills, trusts, and other important documents to remove the former spouse’s name.  In the case of a new marriage, the new spouse will likely be added.  If you have been widowed, this may change how your inheritance will be dispersed.
2. Did you become a parent?  Whether you gave birth to a child, adopted, or became a step parent in the last year, it makes sense to change your estate plans to reflect this change.  Remember that you may want to change the beneficiaries listed on insurance policies and bank accounts, as well as to name guardians and possibly set up trusts to care for your child’s future should you be unable to do so personally.
3. Have you changed jobs or retired?  Your retirement plans and 401Ks may be affected by the change in employment status.  Your Northeast Ohio estate planning attorney can offer you advice on whether to roll over an existing plan or to start a new one, as well as how to deal with dispersal if it is time for you to start drawing on your retirement or pension plan.
4. Have you sold or purchased property?  There are specific laws that pertain to the inheritance of property, as well as the taxes involved.  Adding or removing property from your existing estate plan can help to avoid unnecessary taxes and to protect your heirs’ interests in the property.

There are a number of changes which can impact your estate plan.  By working with a qualified Northeast Ohio attorney, you can help to clarify what needs to be done to keep yourself on track and on target for your estate planning goals.

There are a lot of positives to a living will.  For example, it can take some of the burden off of your loved ones who are likely already in a state of shock over your incapacitation.  In addition to worrying about your health and grieving over your condition, the people closest to you may also be called upon to make incredibly difficult decisions regarding your health care.  Choosing to end life support for a spouse or parent is a heart-wrenching decision, and if you can take that burden from your loved one, then why wouldn’t you?

A recent Wall Street Journal article takes a deeper look into the usefulness of living wills, and some of their findings are contrary to popular belief about these documents.  You can take a look at the article, “A New Look at Living Wills,” but some of the basic points made include:

• Living wills may be too “black and white,” while actual medical emergencies often fall into a “gray area.”
• Doctors have a limited ability to predict a patient’s outcome, so it is difficult to use their best guesses as a measure against which to determine if life support should be withdrawn or not.
• In addition to doctors and patients, ethicists are weighing in on the usefulness of living wills, and many of them are leaning away from using them at all.

One of the biggest problems with a living will is that the wording can be rather vague.  This can be especially true if you use a fill-in-the-blank document you find online, rather than working with a knowledgeable trust attorney in Northeast Ohio.  In order to make your living will as helpful to your loved ones and medical staff as possible, it may be a good idea to be very thorough and to define what you mean by things like “quality of life” and “reasonable chance.”

Many people are moving toward these more comprehensive living wills, although it is certainly difficult to anticipate every situation that can arise.  According to the WSJ articles, some people are now foregoing the living will altogether and opting instead to have their estate planning attorney assist them in naming a health care agent with whom you discuss your views and values before leaving the decision-making responsibilities in his or her hands.

If this is something you would like to explore further in your particular situation, or you have further questions about creating a living will here in Northeast Ohio, please feel free to give our estate planning and elder law firm a call at (440)449-3266 and ask to schedule a complimentary Protect My Future Planning Session with the mention of this article.

If you find yourself in charge of trust administration or are in the process of trying to choose an appropriate trustee for your own estate, here are some very important aspects of the job which should be at the top of your list of responsibilities.

1. The person in charge of trust administration must be able to be impartial.  This means that family feuds, sibling rivalries, and other real or imagined slights cannot be allowed to interfere with the fair and honest administration of the trust.
2. The trust assets should be insured, and if they are lost or destroyed due to the trustees’ negligence, he or she can be held liable.  It is also the trustee’s responsibility to file and pay taxes for the trust and take care of other trust-related expenses.
3. He or she is responsible for ensuring that the trust produces income.  This means the money can’t just sit in a checking account, rather it needs to be invested wisely so it generates income for the beneficiaries.  The trustee also distributes this income to the beneficiaries.
4. Speaking of investments, many states require the trustee to make prudent choices when it comes to those investments.  It is usually helpful to speak with an attorney or financial advisor in order to make wise decisions and to find out what specific regulations apply here in Cuyahoga County.  In fact, it is the trustee’s responsibility to use his or her best judgment to choose an investment agent to handle the delegation of investments if the trustee isn’t qualified to choose them on his or her own.
5. The beneficiaries of the trust must be informed of the activity of the trust.  This includes informing them of the trust and the trustee’s role in the trust, supplying required documentation when requested, and providing all beneficiaries with an annual statement of the accounts.
6. The person in charge of trust administration must be able to avoid conflicts of interest and cannot make decisions which favor the trustee over other beneficiaries.

Proper trust administration in Cuyahoga County requires a combination of personal integrity, business savvy and interpersonal skills.  When choosing a trustee or accepting the position, it is a good idea to speak with a Northeast Ohio trust lawyer to ensure that you fully understand the responsibilities that accompany the position.

By working with a Northeast Ohio business lawyer and/or estate planning attorney in advance, you can save your family, business partners, and even your customers from a lot of hassle down the road.  What happens to the business may depend on the form of ownership you have.

Sole Proprietorship:  Generally speaking, if a sole proprietor dies, the business can come to a rather abrupt end.  If there is someone you trust who is interested in taking it over when you are no longer able to run it yourself, it would be a good idea to stipulate that the assets of the business are inherited (or possibly purchased) by that individual.

Partnership:  It’s likely that your partnership agreement has already laid out plans for what will happen when you or one of the other partners passes away.  If not, then it makes sense to get together with the other partners to come up with a workable plan.  It’s usually not too difficult for this type of business to continue after the death of one partner, although the surviving partners may have to buy out your interest with the money most likely going to your heirs.

Limited Liability Company:  Unless you have stipulated otherwise in the operating agreement, an LLC will typically dissolve once one of the members dies.

Corporation:  When one owner of a corporation passes away, it doesn’t usually have major legal implications for the corporation.  Shares which the member held will usually be transferred to his or her heirs.  They may also be purchased by the corporation.  It’s not unusual for this topic to be addressed within a shareholder’s agreement.

Professionals:  If you are a lawyer, doctor, dentist, pharmacist, or other licensed professional, planning for your business upon your death or incapacity is especially important.  If a license is required for you to practice, only another licensed individual may wrap up or continue your practice.  Including a “Practice Administrator” as part of your planning will enable your loved ones to easily take care of your business; without one they may be stuck with a stranger running your affairs.

Any good business planning lawyer in Northeast Ohio will advise you on ways to help the business transition should you become incapacitated or deceased.  A common approach is to set up a succession plan.  There are many aspects to a succession plan, but some of the most important pieces include designating someone who will take over in your absence as well as training that person to be ready when the time comes.

Succession plans can seem a bit daunting, especially for the sole proprietor who hasn’t put much thought at all into if or how the business would survive without them.  Exploring these topics with a business planning or estate planning lawyer in Northeast Ohio will get you moving in the right direction, whatever your small business needs are.

1. Do I really need an estate plan if I don’t own much?  The answer to this is: ABSOLUTELY.  An estate plan isn’t just about setting up trust funds.  There are very important documents that everyone should have, regardless of their income level or assets.

2. What is the most important document I should have my estate planning lawyer draft?  There are several which are important, but to get started, you will likely need a medical directive that explains what your wishes are in a variety of medical situations when you are unable to make decisions for yourself.  If you’re married, your spouse will likely become the default decision-maker, but by having your wishes outlined, it makes things much clearer and takes some of the burden off of your loved ones.

3. Any others I really need?  If you’re not married, you should really create durable powers of attorney for your medical decisions and your financial obligations.  Parents should absolutely set up legal guardianship for their minor children.  And just about everyone can benefit from creating a will.

4. Aren’t “trust funds” just for the ultra-rich?  Actually, they’re not.  While we may be conditioned to think of trusts as some sort of savings account that doles out money to the next generation, they are actually so much more.  Putting your assets into a trust allows you to put specific restrictions and conditions on how the money is used, can protect a piece of property, and can significantly lessen the amount of taxes owed by your estate and its heirs.  The cost of setting up a trust will save you its value many times over.

5. Will I have to pay a “death tax?”  Maybe.  For 2012, this estate tax only applies to those worth more than $5 million.  In 2013, that amount is expected to drop to $1 million.  The 2012 tax rate for those with estates worth more than the $5 million is capped at 35%, while the projected 2013 tax rate for estates worth more than $1 million can reach as high as 55%.

Of course, there are many other questions which a Northeast Ohio estate planning lawyer is used to answering on a regular basis. These five, however, are commonly asked and may have been on your mind.  Armed with this information, you may have realized that now truly is the time to meet with an estate planning attorney and get the ball rolling for your future plans.

There are also some really attractive tax benefits available to those who take advantage of 529 plans when planning for their families’ futures.  For example, the money invested grows tax-deferred, and college costs later are free from federal taxes.  Some states also offer considerable tax benefits.  A skilled local attorney can help you assess the applicable tax benefits for those residing in the Northeast Ohio area.

Because 529 plans are typically run through states or institutions, there is often concern about whether or not kids growing up in the Northeast Ohio area have to attend specific schools in Ohio.  Most plans actually allow you to choose from a variety of schools, not limiting you by geographic area.  In fact, it is common for families from one state to choose to invest in a 529 plan from another state because they prefer it for one reason or another.

There are two different types of 529 plans to consider when planning for your kids’ future.  (Or your own, as you can set up a plan for yourself if you know you’re interested in going back to school in the future).  “Savings plans” are similar to retirement plans, with your contributions invested into things such as mutual funds. The value of the plan depends on how these investments perform.  “Prepaid plans” simply allow you to pay the tuition in advance.  These can often be converted for use at out-of-state or private colleges.

CBS News has a good rundown on six reasons to invest in a 529 plan.  They include reasons such as the fact that tax changes in 2013 won’t affect money already invested and a likelihood that investments made now will keep pace with tuition increases. Grandparents are even looking at 529 plans as a way to provide for grandchildren during the estate planning process.

If you have questions on how to set up a 529 plan and whether it’s a wise option for your family, give our Northeast Ohio trusts and estates law firm a call at (440)449-3266 and schedule a complimentary consultation with the mention of this article.

The legal aspects of a same-sex relationship often fall under the category of contract law in states where these relationships are not legal.  It can be complicated, and in order to protect your property and your relationship, it is highly recommended to work with an experienced estate planning attorney.

There are several issues which need to be clearly addressed.  Keep in mind, too, that this is just an introduction, and there are many other considerations to make with your lawyer.

Powers of Attorney

If one partner was to fall ill, would the other be allowed to make medical decisions for him or her?  If a medical power of attorney has not been created, then the answer is likely “no.”  The decision-making role would go to a blood relative.  The same is true of finances.  In order for one partner to have control of the other’s finances during an illness or after death, a financial power of attorney needs to be in place.

Planning for Assets

While legally married couples have the protection of assets usually being passed directly to a spouse, same-sex couples do not typically enjoy these same considerations.  That’s why it is important to make sure that you name your partner as your beneficiary when and where you can.  Some possibilities include:

• Bank Accounts
• Life Insurance Policies
• Mutual Funds/Stock Portfolios
• Retirement Plans

Your estate planning attorney in Northeast Ohio will have a comprehensive list of assets which should be considered when naming beneficiaries.

Taxes

Estate and gift taxes are another area in which same-sex couples don’t have the same protections as those who are legally married.  For example, legally-married spouses can gift their money and assets to their spouses without facing huge tax repercussions later.  Inheritance taxes have received considerable attention as of late, but the fact is those who don’t have the protection of legal marriage are still going to pay more than others.

Your estate planning attorney in Northeast Ohio can help create ways to limit the amount of taxes which would be expected after the death of one partner.  This can be achieved through well-thought-out gifts, living trusts, and other means.

The fact of the matter is same-sex couples need to put time and effort into the estate planning process in order to ensure their partners receive what they are entitled to receive.  While estate planning really should be done by all kinds of couples, there are some safeguards in place to protect those who are legally married, and these options are just not yet available to same-sex couples in Ohio. In the meantime, it just makes good sense to set up a meeting with a reputable attorney and add some peace of mind to your relationship.

There are some common questions which go along with revoking a will, but one of the most asked is whether or not revoking the will revives a prior one.  The answer to this question is “probably not.”  When setting up your estate planning needs, your attorney will likely help you create a will.  If you decide to make changes and create a new will later, the previous version is no longer in effect.

Where the confusion lies is if the later will is then revoked.  Many people assume the previous version of the will is simply reinstated.  This is often not the case. Some places are considered “no revival” jurisdictions wherein the earlier version is not automatically revived.  Instead, it may be necessary to have a Northeast Ohio wills and trust lawyer lay out options for re-signing or republishing the first will.

Estate planning law is constantly undergoing changes, so the best option for those in Northeast Ohio and beyond is typically to contact an attorney to find out precisely what steps need to be taken to ensure your true wishes will be followed. While it may seem obvious to you what you want, keep in mind it can be far less clear to your grieving loved ones who are left behind.

Additionally, if a new will is revoked and a previous one has not been automatically revived, then the courts will need to step in just as if you never had a will at all. Even if you worked with an attorney to outline your wishes, without the signed, active document, your estate can end up going through the probate courts anyway.

For these reasons, and for simple peace of mind, it makes sense to seek out a qualified Northeast Ohio estate planning lawyer to make sure all of your affairs are in order.  This professional can help you create a legal will, as well as consider if other options are appropriate for your estate.  Estate planning can be a rather overwhelming process, but a good attorney will be well versed in the law as it applies to residents here in Northeast Ohio and will make sure you are able to have control over your own plans.

Catch Al Hehr’s radio show, “Planning for your future” on The Talk Of The Town, AM 1330 WELW at it’s new time of 4 pm on Wednesdays. It can also be heard anytime at WELW.com or on Tunin radio.

Having the proper legal documentation in place means your wishes will be carried out for the care of your minor children.  There are some important considerations to be made when choosing a guardian.

One of the first things parents tend to consider is financial ability.  This makes sense.  After all, you want to ensure your children are raised comfortably and you are not putting undue burden on the guardian you choose.  This fact alone is enough to encourage parents to contact a Northeast Ohio estate planning attorney in the first place.

But, there are other considerations to keep in mind, many of which are arguably even more important than financial means.  For example, parents should choose a guardian whose values are consistent with their own.  Does your family strongly value education or do you have devout religious beliefs?  Choosing a guardian who shares these values should probably be a high priority.

Of course, you do need to consider the guardian’s ability to support your children. This is precisely why you need to work with an estate planning attorney in Northeast Ohio.  Not only will he or she help you put together the legal documentation required to name a guardian, but this professional will also help you create the financial means for your child(ren)’s care.

An attorney may assist you in creating any number of trusts which can be used for your child’s upbringing.  Money from these trusts can be used for basic care, as well as earmarked for future education.  While you won’t be there physically, you can still help guide your children’s future.  And, you will have much more influence when you choose a guardian who will raise your children with similar morals and values to your own.

Other things to consider when choosing a guardian for your child:
Do they have a similar parenting style to your own?
Is your child already comfortable with this person?
Are they willing to take on the responsibility?
Will they be emotionally able to care for your children after your death?

After putting considerable thought into your choice, work with a trusted estate planning attorney in Northeast Ohio to make your decision legal and binding.

Catch Al Hehr’s radio show, “Planning for your future” on The Talk Of The Town, AM 1330 WELW at it’s new time of 4 pm on Wednesdays. It can also be heard anytime at WELW.com or on Tunin radio.