The Letter of Intent is along the lines of a personal letter, rather than being a more formal legal document.  It is used to supplement the special needs plan in order to provide additional information.

Uses for the Letter of Intent

• Parents often use it to address wishes that they have which don’t really fall under the purview of legal requirements.
• This document is also useful for addressing information about your child that is subject to change.  While various other special needs planning documents tend to be more static, the Letter of Intent can be changed out as the information in it needs to be updated.
• Finally, a Letter of Intent is used to discuss topics that are just too lengthy to include in the special needs trust.

The letter is typically addressed to the people who will be caring for your child once you are unable to fulfill that role.  When the time comes, your attorney will share the Letter of Intent with the child’s caregivers, as well as with the trustee.  They can use the letter to help interpret your desires and to help follow through on the wishes you have for your child.

Where to Get the Letter

Your special needs attorney in Northeast Ohio can help you draw up your Letter of Intent as a supplemental piece of your special needs trust.  You may also wish to download a template for organizing your thoughts.  A nice one is available at http://www.specialneedsanswers.com/moi_order.asp.  As with any online resource, be sure to have your attorney review the document and offer advice and recommendations.

For a lot of people, a business is their biggest asset. Certainly, you want to make sure it’s protected–no matter what happens.  By planning now, you can help ensure that your business will go on to survive without you instead of falling apart because you’re no longer at the helm.

Step One:  Choose a Successor for Your Business

This was already mentioned in the event that are planning to retire, but other situations can arise in which you are unable to continue to head up your business.  Having someone you trust lined up who is prepared to take the reins should it become necessary will ensure your business stays running during an otherwise chaotic time.

Step Two:  Share the Knowledge

All too often, the business owner is the only person who is privy to all of the information it really takes to make the business run.  If you’re keeping everything “in your head,” how can your employees keep things running in your absence?  It’s time to gather up operational information that others may need should they be forced to step in and fulfill your role.  This doesn’t mean you need to share trade secrets with every employee; it just means that you should at least have a good blueprint for how things work that is accessible to the person or people who will need it if the time comes.

Step Three:  Know Your Assets

It’s a good idea to understand the overall value of your business.  Creating an inventory of assets is a good start in this process.  In today’s age, many assets are not even tangible items but are digital in nature—such as web properties, online accounts, and more. Talk to a professional if you need help assessing your assets.

Step Four:  Work with a Northeast Ohio Attorney

To solidify your ideas and ensure that you are planning within the scope of the law, you’ll want to sit down with a business planning attorney here in Northeast Ohio who is familiar with local laws and regulations.  Your attorney will help you draw up legal documentation that provides direction for your business when you are no longer able to retain control.  It also helps to establish your true intentions and limit the amount of challenges others may face later down the road.

If you’re ready to get started creating such a plan for your business, call our Northeast Ohio business planning law firm at (440)449-3266 and ask to schedule a complimentary planning session with the mention of this article ($750 value).

Do the Cuyahoga Probate Courts Have to Be Involved?

One of the most common questions asked when someone dies without a will is whether or not the courts must be involved.  The short answer to this is “yes.”  The Independence probate lawyer helps to guide the estate through the process.

The probate court’s job is to ensure that the decedent’s affairs are legally concluded.  This typically means that someone is appointed to be in charge of the estate and follow through with transferring property to heirs as deemed appropriate.  In addition, court fees, estate taxes, creditors, and all other applicable costs will be paid out of the estate.  When this person is named by the courts, he or she is usually either referred to as the personal representative or the administrator.

Who Inherits the Estate?

When an estate goes into probate in Cuyahoga County, the proper division of property is determined by the courts.  Each state can have its own laws in regards to how the property is divided, so working with a probate attorney in Ohio is the best way to ensure you understand what applies in your case.

The most common method of distribution is for property to go to family members.  Most states, after paying the associated fees and other outstanding costs, will award money and property first to a current spouse and children of the decedent.  If this person is unmarried and/or without children, the estate will likely go to parents, with siblings, grandparents, and aunts and uncles falling in line after those.  In cases where no family members are found, the estate can become property of the state.

How Can I Avoid Probate in Cuyahoga County

The best way to avoid probate, of course, is to plan.  An probate lawyer or estate planning attorney in Independence can help you determine your needs and goals and get you set up with the right documentation to make sure that your wishes are outlined well in advance.  That way, you make the decisions about your estate, instead of leaving it in the hands of the courts.

When a will is “contested” that means that it is being challenged for some reason.  Fortunately, heirs can’t simply overturn your will because they’re not happy with it.  Instead, they have to show a legal reason that the will itself is invalid.  If it is found to be invalid, then the administration process changes dramatically for all involved.

Who Can Contest a Will in Ohio

As mentioned above, a will can’t just be contested because someone doesn’t think you left him or her enough or to create more drama at an already difficult time.  Instead, it must be shown that there is a valid reason for contesting.  Those who can contest a will during the administration process include:

• Someone named in the will who feels he or should have inherited differently
• Someone not named in the will who thinks he or she should have been

One way to determine if a person has standing to contest the will is to determine if he or she would have inherited if you had died without one and your estate had gone into probate.

Reasons to Contest a Will in Ohio

Simply being unhappy with your share isn’t enough for a court to consider a request to contest a will.  Instead, specific problems must be shown.  For example:

• The testator was unduly influenced
• The testator did not have the mental capacity to make binding decisions
• There was a mistake in the will
• The will constitutes fraud or was created fraudulently

If any of these things are found to be true, then all or part of the will can be voided.  If the entire will is considered invalid, then its administration is governed by Ohio’s intestate laws.  If only part of the will is questionable, then that portion of the estate can be added to the residuary estate and dispersed as the will otherwise states.

That’s why I’ve put together a list of four brief reasons that explain why you need a will…and why it must be created sooner, rather than later.  There are certainly many other aspects to consider, but these can have a great impact on the future of your estate:

Reason You Need a Will #1:  It Saves Money

There are so many financial issues that come into play once an individual has passed away, and it really does take a trained lawyer to understand them and come up with a solid game plan.  An estate planning attorney is able to help you take advantage of tax benefits that you might not have otherwise known were available, as well as help you save an incredible amount of money that can be passed on to your heirs.

Reason You Need a Will #2:  It Protects Your Family

Not all adults have minor children, but those who do should have a will in place that names who they want to be their child(ren)’s legal guardian in case of death or incapacitation.  If you and your wills lawyer in Independence have not formally and legally laid out this information, then it will be up to the courts to determine who will raise your children in your absence.  Keeping your will updated also protects other family members, as you can determine what goes to whom, rather than having family members cause fights and drama over your estate.

Reason You Need a Will #3:  It Keeps Real Estate Intact

Do you own a house or other property?  If so, and you pass away without a will, the courts will likely pass co-ownership of that property to your heirs.  What happens when some of your heirs want to keep the property and others want to sell it?  What if you specifically want a certain heir to inherit your property?  What if you don’t want your heirs inheriting the property and would rather leave it to someone outside the family instead? Without a will, the answers to all of these questions will be completely out of your control.

Reason You Need a Will #4:  You Might Not Be Allowed to Do It Later

One of the requirements of a valid will is that the person creating it is of “sound body and mind.”  If you become victim of an illness or injury that brings your ability to make sound judgments into question, you may be unable to put together a legally binding will later on.  Anyone who does not agree with your decisions can simply contest the will, saying that you were not competent to make those choices; and the whole thing could end up in court.

Of course, there are many, many other reasons to meet with an Independence lawyer and have an estate plan designed that addresses your unique legal and financial needs.  We’re happy to help you get started with the process, so if you have further questions about wills here in Northeast Ohio or you’d like to move forward protecting the people and things you love, please give our office a call at 440-449-3266 and ask to schedule a free Protect My Future Planning Session with the mention of this article ($750 value).

Far too many people assume that their families would make the choices they would want in an emergency.  Yet everyday we hear stories of adult children, siblings or other relatives battling during a health care crisis over “what their loved one would have wanted” in that situation.

The Terry Shiavo case is a great example of this. At the young age of 26, Shiavo suffered sudden cardiac arrest and slipped into a permanent a vegetative state.    She never documented her wishes about things like feeding tubes, life support and long-term quality of life, leaving her family to battle for years over these questions in court.

Her husband eventually had her feeding tube removed claiming, “That’s what she would have wanted”. But was it really? We’ll never know because Terry didn’t make her healthcare wishes known to her closest family and friends.

But it’s not enough to just tell someone about your wishes.  You need to clearly document your preferences, too.  Remember, emotions can run high during a health care crisis, and it might be hard for your loved ones to stop life support when they desperately want you around.  Having your wishes spelled out in writing helps make these types of decisions easier for your loved ones, especially in cases when other family members don’t agree.

So in honor of National Health Care Decisions Day, I encourage you to start tough conversations with loved ones about your personal medical preferences for medical or long-term care.  Here are some important questions to consider:

• What are your thoughts on feeding tubes, life support and other artificial life saving devices?
• Is there any type of medical care you would NEVER want?
• If you were permanently disabled or incapacitated, what things would contribute or take away from your “quality of life”?
• Who do you trust to make important medical decisions if you are unable to speak for yourself?
• What are your thoughts on nursing home vs. in-home health care?  Who would you trust to manage your long-term care?

These are not the most fun conversations to have, but they will help to ensure that your most personal wishes are honored in a true medical emergency.  Talk them over with loved ones and get something in writing that spells out your wishes and the care you want if something happens to you.  If you have questions, talk to your attorney and get something in writing before an unforeseen emergency strikes.

Ready to document your most personal health care decisions for National Health Care Decisions Day? Give our Independence or Mayfield Village office a call at 440-449-3266 and ask to schedule a free planning session during the month of April.

However, when it comes down to honoring our deepest religious or spiritual desires, many people overlook the necessity of incorporating such wishes into their estate.  When religion plays an important role in someone’s life, it makes sense that it would also be important in the legacy they leave behind.

Many estate planning attorneys from Independence don’t necessarily focus a lot of their expertise on the religious aspects of planning, which makes sense.  After all, there are so many religions that it would be impossible for one attorney to be well versed in them all.  However, if there are religious preferences you would like to see incorporated into your estate plan, a skilled attorney in Independence can help you legally document the wishes of your faith.

Where to Find the Information You Need

Fortunately, there is information available to help you and your estate planning attorney uphold religious preferences in your estate planning that deeply matter to you.  Many institutions have already put together informative brochures or packets to help guide you through the religious aspect of your estate planning.  They often have sample forms that you can print and take directly with you when you meet your lawyer.

This information can also help you to become clear on what your estate planning goals are in reference to your religion.  By setting out your goals in advance, you and your attorney can then go about setting up action steps that ensure your estate plans fit in with your values and beliefs.

Some Estate Planning Areas Affected by Religion

It’s almost surprising how many aspects of estate planning are truly affected when one starts looking at them from a religious perspective.  The most obvious area, of course, has to do with funeral and burial arrangements.  Is there a specific type of ceremony or location for the service that is important in your faith?  Are there religious considerations that need to be met?  You will likely want these included in your will, as well as your Health Care Directive (living will).

A living will and health proxies can certainly be affected by religious beliefs.  For example, what is your religion’s official stance on life support, blood transfusions, or other medical acts?  If you’re unsure but want to be in accordance with the teachings of your faith, then it is up to you to learn the answers to these questions, typically before you meet with your Independence trusts and estates attorney.

Even the bequeathing of your estate can be directed by your religion.  Some require specific portions of an estate be left to predetermined heirs, for example.  In addition, you may either wish or be compelled to designate a portion of your estate for your particular faith community.  Your Independence estates lawyer can help you determine how best to do this, whether through a specific gift or by setting up a trust.

First of all, long-term care is a very likely scenario.  People are now living longer than they ever have before.  This can be a great thing, but it also means that the period of time in which we cannot fully care for ourselves may be longer, too.  More and more people find that they truly need some form of long-term care.  In some cases, this can be handled through an in-home healthcare worker rather than in a nursing home, but even that is expensive.

Nursing homes are a common solution when it comes to long-term care, and a good elder law attorney should help you plan for how to make this possibility happen.  It’s common for people to think that the government will simply pay for their needs or that a nursing home isn’t any more expensive than renting an apartment.  Both ideas are usually untrue.

So, how does one pay for long-term care?  Elder care attorneys typically see four approaches:

1. Private Pay – Any care that is needed, from nursing homes to prescriptions drugs (including co-payments or full costs) are covered out of pocket.  Elder care services tend to be very expensive, and the costs associated with them are incredibly high.  It’s not unusual for assisted-living placements to cost upwards of $8,000 a month.  That means that “simple” basics that are required for day-to-day living come out to $96,000 a year.
2. Medicare – Medicare is a health insurance program administered through the government.  Elder law attorneys work with this program a lot because one of the basic requirements is that you must be over 65 to receive benefits.  Many people are surprised to learn that Medicare does not typically cover long-term care.  So, even if you qualify for this program, it cannot be used to cover nursing home care or in-home healthcare professionals for more than about 100 days.
3. Medicaid – Medicaid is used by those with great financial need, and you must apply and qualify for the benefits.  Many people are shocked when their elder law attorney explains that Medicaid is not actually available to everyone, and if you have much by way of assets (even a modest home or a few thousand dollars in the bank), you may not qualify at all.  If you hope to qualify for Medicaid, you must prepare several years in advance to protect your assets.
4. Long-Term Care Insurance – This type of insurance can help to cover or offset the costs associated with long-term care, such as an in-home healthcare worker or nursing home care.  Policies can be somewhat confusing and expensive, so it’s highly recommended to work with an impartial elder law attorney when reviewing potential policies to ensure you understand them and are getting what you expect.

There are many issues to take into consideration when planning for your future, and long-term care is undoubtedly one of the most important.  Working with an elder care attorney in Independence means that you will understand the options that are available to you and how they apply according to state and federal law.

While it’s possible that some online estate planning tools can work for your situation, it’s much more likely that you’ll end up trying to force your situation to fit their cookie-cutter approach.  The end result is that no one truly gets what they need or want.

For example, the typical modern family can be pretty complicated.  There may be step-parents, half-siblings, and multi-generational issues that are just more complex than what a simple web-based tool is prepared to help you create.  Additionally, you may be limited in the number or types of trusts you can set up or how your will must be executed.  Not only will you be unable to set up precisely what you want and need, but any ambiguity can also open your will up to being contested.  At that point, your planning can become almost worthless as the estate can go into probate, racking up court and lawyers’ fees while potentially disregarding your actual wishes.

Instead, take the time to visit with a flesh-and-blood wills and trusts lawyer.  Many even offer a free consultation to let you know what they can do for you and to give you a chance to ensure that you feel comfortable.  There’s nothing wrong with checking out a couple of attorneys before making a decision, and you may even find that friends and family have some great recommendations for you based on their own experiences.  Laws do vary, not only by state but also by county, so choose a wills and trusts attorney from the Cuyahoga County area to help ensure that your documents are going to hold up in our county.

Online estate planning tools seem like they offer the world, but it’s really important to recognize their limitations.  While they may be a bit less expensive than a wills and trusts attorney up front, they often cost so much more in the long run.  Consider meeting with a lawyer to at least compare what you are able to get out of each scenario before making a decision about which method to use.  There’s a good chance you will discover that it’s just hard to beat the flexibility and assurance that comes from working with a real professional.

According to research done by Roy Williams and Vic Preisser, intergenerational wealth transfers fail a staggering 70% of the time!  The main factor in the failures was that the families themselves did not implement any post-transition planning.  That is to say, the heirs were never prepared to take on the privileges and responsibilities of inheriting the family’s wealth.

On the contrary, the study found that families that were successful in preserving wealth had put forethought and preparation into how their wealth would be passed down. These families cited having a unified “family mission” and “strategy” as being exceptionally important tools for keeping everyone on the same page.

For example, if family wealth was often used for philanthropic purposes, the younger generations would have a hand in this type of administration before the head of the family ever passed on. Or, in the case of a family business, children and grandchildren would be given opportunities to participate and learn early on what may be expected of them in years to come.

The obvious conclusion to draw from the numbers is that most families with a lot of wealth are simply not preparing the next generations for the roles they will play.  This, coupled with potential strain and animosity among family members, has led to a reality in which the vast majority of intergenerational transfers of that wealth are simply failing.

Whether you are the family matriarch/patriarch who will be passing on wealth, or you are a member of the generations that will be receiving it, you can start the important conversations that can ultimately rescue your family.  Working with an Independence trusts and estates attorney and seeking other professional assistance is the perfect first step to getting your family on the right track for continued financial success.