Let’s take the “mystery” out of what exactly an estate plan is by first describing it and then listing the most common elements one might find in one.
What is estate planning and what are the basic plan elements? Estate planning is the process whereby you decide how you want your assets distributed upon your death and can include a number of legal instruments that can benefit you while you are still alive. Everyone’s plan is unique to them. Working with an experienced estate planning attorney here in Cincinnati is always a good idea to ensure the plan meets your needs and goals. Let’s list the key ingredients in an estate plan.
- The Will
Most know what a will is, though an estate planning attorney can provide finer details of course. In addition to directing “who gets what”, a will allows you to designate guardians for anyone under your care, such as your minor children. And it can be used to direct the kind of funeral if any, you want. Most estate planning attorneys will recommend additional legal instruments to help protect you and your heirs. Those are listed below. A cautionary note … you probably know dying without having a will is not a good thing. Your heirs will not thank you if you die without a will because the state steps in and makes decisions on your behalf about “who gets what”. And they may not make the same decisions you would have.
- Durable Power of Attorney
A durable power of attorney is an important legal instrument in estate planning if you become incapacitated and are unable to make your own financial or legal decisions. If you have this, you will have appointed a trusted individual to handle your affairs while you are unable to do so. Most think of this as useful if you become incapacitated but, a durable power of attorney can also be used if you are traveling outside of Ohio and unable to handle a financial or legal matter personally.
- Healthcare Power of Attorney
This document is like the durable power of attorney, as any estate planning attorney here in Cincinnati will tell you however, it is related to medical issues and situations. Most married individuals appoint their spouse to this role. You may want to appoint a sibling, an adult child or even a close friend. This document outlines what your wishes are for your medical care in the event you are unable to communicate them. By having this legal document your loved ones don’t have to make presumptions on your behalf.
- Advanced Healthcare Power of Attorney (also called a Living Will)
Your estate planning attorney here in Ohio will explain the difference between this and the Healthcare Power of Attorney to you but for the most part, this comes into effect if there are end-of-life decisions about treatments such as feeding tubes, ventilators and the like to be made. This document eliminates the situation where your loved ones have to guess what you might have wanted. That is a burden no one should pass on to their heirs.
- A Trust. Estate planning attorneys in Ohio often advise their clients to set up a trust so that when the client dies, their assets, which have been placed in the trust, avoid probate court proceedings. This not only saves your heirs time, it often saves money as well. The person you appoint as your trustee distributes the assets per your wishes. Not all assets can be placed in a trust; your estate planning attorney can advise you about that.
In summary, estate planning is all about making a plan so your hard-earned assets are protected and distributed as you wish. But it is more than just the assets and the nuts and bolts of the basic documents … it is all about caring for your loved ones and not burdening them with your end-of-life medical choices they shouldn’t have to make or having them suffer through probate court proceedings because you didn’t have a will. You will have great peace of mind once you have your estate plan finalized – because you’ll know you did it out of love for them.
For more information about estate planning in Cincinnati Ohio please visit my website services page https://davidlefton.com/services/ or call me directly to schedule a consultation at 513-399-7526.