As the last post of 2022, I’ve decided to provide some basics about estate planning and trusts here in Cincinnati for you to consider in the new year. But before I go further, I want to clarify a general misconception about estate plans.
Some believe estate plans, which often include trusts, are just for individuals with significant assets like real estate, fancy cars, boats, planes, antiques, etc. It’s true wealthy individuals frequently and wisely take advantage of the benefits of an estate plan, including a trust. But that doesn’t mean the rest of us can’t enjoy the “perks” too. Unless you have virtually no assets, you can probably benefit from having an estate plan for yourself and your loved ones. Two of those “perks” are:
- In Cincinnati, a trust can help your heirs avoid probate – they will thank you for that.
- A Financial Power of Attorney can be useful while you are alive. For example, if you become incapacitated, perhaps from an auto accident. Or if you are traveling out of the country and need someone to act on your behalf while you are gone.
Basically, an estate plan in Cincinnati is a tool that individuals of modest means can use, just like the wealthy, to protect their assets and their loved ones. The following are some basic components usually included in an estate plan.
A Trust
As explained on my website www.davidlefton.com, a trust is sometimes called a revocable trust or living trust. The trust holds and distributes your hard-earned assets during your lifetime and upon your death – as you have designated. A trustee, generally yourself, manages and distributes the trust assets according to the terms you designate in the trust. A significant benefit of a trust is that it can be instrumental in avoiding probate, which your loved ones will appreciate.
A Healthcare Power of Attorney
Another basic element in estate planning, in addition to the trust, is a healthcare power of attorney. This legal document allows an individual to designate another person to make medical decisions for them when they cannot make decisions for themselves or themselves. Healthcare providers in Cincinnati and elsewhere are becoming increasingly strict about from whom they will take direction when it comes to patients. One cannot assume a spouse will be permitted to provide direction unless there is a Healthcare Power of Attorney granting that permission.
A Living Will – An Important Estate Planning Basic
A living will documents your wishes regarding life-sustaining treatments if you are unable to make informed medical decisions and are in a terminal condition or a permanently unconscious state. Your loved ones will appreciate your having completed this document in advance so they are not left guessing what you may have wanted or not.
A Will
Last but not least, everyone should have a will. While most agree it’s a good thing to have a will, surveys continue to show only about 50% of adults in the US take the time to create one. A will is a basic element of a complete estate plan, and if you have multiple heirs, they will be very appreciative if you have taken the time to create one and keep it up to date. If you die without a will here in Cincinnati (called dying intestate), the State of Ohio will step in to make decisions about distributing your assets. They may not make the same decisions you would have – yet another great reason, if you care about your heirs, is to have an updated will.
I would be honored to help you update or create your estate plan. Call 513-399-7526 or visit www.davidlefton.com to schedule a consultation with me.