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At all income levels, a proper estate plan is necessary to ensure that what you spent a lifetime building is handled exactly how you wish. Letting your wealth distribution fall at the discretion of the probate court, the state, or anyone else for that matter are all less than desirable options. Recognizing the need for an estate plan, the next step is to determine what documents are best for your unique situation. To that end and to save time in the process, we have put together a checklist to help you consider your options and make the best decision for you. Estate Planning Checklist Here is a brief overview of each of the steps involved in properly preparing an estate plan. Even if you seek the help of an attorney or estate planner, understanding this process will help you be prepared with all the necessary documentation available. The steps are as follows: Collect your important financial documents, and all prior estate planning documents (if any). Make an inventory of your assets, liabilities, and income from all sources; including digital assets or information. Consider a Last Will and Testament. Decide not only on the disposition of your assets but also on the executor of the estate. Consider if a living trust, or other probate avoidance documents, might be necessary. Decide who should hold a general (financial) power of attorney. Decide who should be named in a living will/health care power of attorney. Prepare for your tax obligations. Create a reference guide for your executor (and financial planners, attorneys and accountant). Revisit and update your documents periodically. Collect Your Important Documents Having your important documents on hand will make this process much easier. We recommend gathering any relevant insurance policies, financial statements for any of your accounts, any ownership documents you might have, and statements on any outstanding debts. Keeping these available will make this process much quicker and less stressful. Make An Inventory Of Your Property Including Digital Assets Or Information Some lists break this into two separate sections, but property is property. If it has a monetary value we want it assessed. Even if it is strictly sentimental, we still want it distributed to the proper person. Items that would typically fall under this section include but are not limited to: home furnishings, vehicles, clothes, jewels, cash assets, crypto, brokerage accounts and any insurance, stocks annuities, or retirement accounts. In the realm of digital assets it is also very important to include your social media accounts and any online access passwords that may be needed. These don't necessarily need to be included in the estate planning documents themselves, but how to access the official list may be. Create A Last Will And Testament Most people understand intuitively what a will is. It's simply a document that gives specific instructions for asset distribution after a person's death. It may also include care instructions or guardianship assignments for minor children left behind. The document will also designate someone to be the executor of your estate and distribute any property not controlled by some other contract (i.e. jointly owned or otherwise designated to a beneficiary). Decide On Your Executor Of The Estate Choosing an executor of an estate, or an estate manager is a critical decision for your estate plan. This task is so important that we recommend having a backup or two in the event the first choice is unwilling or unable to serve. Your executor should be responsible, financially stable, and generally able to execute the terms of your Will. These qualities ensure proper handling of your details. Decide If A Living Trust Might Be Necessary A living trust is similar to a will in many ways. It allows you to choose how assets are distributed but can also allow the beneficiaries to avoid probate court. A trust will most certainly involve more upkeep than a will, so it is not the solution for everyone. It should go without saying that decisions like this are best made with legal guidance. Decide Who Holds A Financial Power Of Attorney There are situations where you may need someone to speak on your behalf for financial reasons before your passing, in which case a Power Of Attorney may be necessary. There are a few different ways in which these powers can be granted. A General Durable Power Of Attorney is most often the preferred choice, as it is effective immediately and extends beyond a subsequent incapacitation. However, there are other types of powers of attorney that are best discussed with an attorney. Write A Living Will and Health Care Power of Attorney Living Wills and Health Care Powers of Attorney, also known as advance directives, control decisions regarding your end-of-life care. These exist to make known your desires on what measures are appropriate to take in prolonging your life, when you are unable to speak for yourself. Living wills insure notice to your family members prior to the implementation of your end of life decisions; and can be used in tandem with a healthcare power of attorney to ensure that your health care objectives are respected. Prepare For Your Tax Obligations There are a few different tax concerns at both the state and federal levels that you will want to keep in mind when setting up your estate plan. The IRS changes estate tax laws frequently, so make sure you're prepared by talking to a tax professional as well. Don't take for granted that rules and thresholds are the same from state to state and federally. Create A Reference Guide For Your Executors It's one thing to create a legal document telling the government who has the right to make decisions on your behalf; it's another matter entirely to set that individual up for success in executing your wishes. In an effort to lessen the stress on the person/people speaking on your behalf, you should create a guide including or directing them to everything they will need. The guide should include how to find and access all of the following (at least): financial accounts, insurance policies, credit cards, vehicle loans, and mortgages. Other information that would ideally be in the guide would include: who and how to contact close friends about your death, locations of any physical safe storage locations, and specific end of life requests ie. burial, cremation, etc. Revisit And Update Your Documents Periodically  The final and most important step is to revisit and periodically update the information in your estate plan. Once a year is a nice interval to assess how things like births, marriages, divorces, adoptions, and deaths might affect your previous plan. While doing this assessment you will want to make sure you have on hand updates of any pertinent accounts or documents. Make a plan now to preserve your legacy! Call us at 440-517-7165 to schedule an initial consultation or email Neil at nspike@spikelegal.com!

What Is Probate? Probate is a legal proceeding to administer certain kinds of property (called probate property) owned by someone who has died (the decedent), to see that claims, expenses, and taxes are properly paid, and to see that the remaining estate is distributed to those entitled to receive it under the terms of the decedent’s will or under Ohio law. Probate property consists of all property titled in the decedent’s name and not transferable on death. It is distributed according to the terms of the decedent’s will or, if the decedent died without a will (intestate), according to Ohio law. A probate proceeding takes place in the probate court of the county in which the decedent lived. If the decedent also owned real estate in another state, additional proceedings may be necessary in that state. What Property Is Not Included in Probate? Property that is not probate property (called non-probate property), and therefore is not part of the probate proceeding, includes property the decedent and another person held as joint tenants with right of survivorship; property held in a trust; accounts that are payable on death (POD) or will transfer on death (TOD) to a named beneficiary; and insurance or retirement benefits that are payable to a named beneficiary. Non-probate property passes directly to a named beneficiary, survivor, or successor in interest, without probate proceedings. Probate property and non-probate property may be subject to federal estate taxes. Why Is Probate Necessary? Probate is necessary to give the executor or administrator the legal authority to control, safeguard, and distribute the assets of the decedent’s estate. Probate also provides a process for the payment of outstanding debts, taxes, and the expenses of administration, and for the distribution of the remainder of the estate to the beneficiaries and heirs. What Does Probate Involve? Probating an estate requires that a person be appointed to conduct the administration of the estate. If there is a will, this person is usually named in the will and is called an executor. If there is no will or no person is named in the will, this person is appointed by the probate court and is called an administrator. The executor or administrator may be an individual, a bank, or a trust company. The executor or administrator manages the following tasks: Caring for the decedent’s property; Receiving payments due to the estate, including interest, dividends, and other income; Collecting debts, claims, and notes due the decedent; Determining the names, ages, addresses, and degree of relationship of all heirs; Determining the names, ages, and addresses of all beneficiaries, if there is a will; Investigating the validity of all claims against the estate and paying all outstanding obligations; Planning for all relevant estate and income tax returns when required and making the required payments; Carrying out the instructions of the probate court pertaining to the estate and distributing the assets of the estate to the heirs. The probate court judge and support staff supervise the work of the executor or administrator. This work may require the preparation and filing of legal documents, providing of notices, attendance at court hearings, securing of an estate asset appraisal, filing of an asset inventory, completion of final income tax returns and possibly gift and estate tax returns, an accounting of funds, final transfer of all assets to beneficiaries, termination of the probate proceeding and discharge of the executor or administrator by the probate court. Because of the complexity of these procedures, it is wise to get an attorney’s assistance. The Spike Legal Group LLC can help you with this. If the total value of all property in the decedent’s individual name is $35,000 or less, the estate can be relieved from some of these administrative requirements. Where the decedent’s spouse is entitled to receive all of the estate’s assets, the amount that can be relieved from formal administration is increased to $100,000. How Much Does Probate Cost? The costs assessed by the probate court are based on a schedule of charges that the law has established for each type of document filed in the court. Costs typically are about $200. In most cases, the court must approve attorney fees charged for handling estate matters. Typically, attorney fees are based on an hourly rate for the actual services the attorney performs, or fees may be charged according to the probate court’s recommended fee schedule. The executor or administrator is entitled to receive a fee set by Ohio law, based on a percentage of the value of probate property and income, as well as the value of the non-probate property (excluding joint and survivorship property). An executor, administrator, or an attorney may request additional fees for extraordinary services. Executor and administrator fees are taxable and frequently waived. How Long Does Probate Take? Claims against the estate may be made up to six months from the date of death. A small estate that does not require the filing of a federal estate tax return and has no creditor issues often can be settled within six months of the appointment of the executor or administrator. However, if a federal estate tax return is required, the administration of the estate can last more than a year. (Estate taxes are not due until nine months after the decedent’s death.) If there is an audit of an estate tax return, the administration can take up to an additional year or more, and an executor or administrator cannot safely distribute all of the estate assets until released from personal liability for estate taxes after the audit has been completed. An extraordinary administration involving a contested will or complicated tax litigation may take several years to complete. In many cases, however, distributions of most or all estate assets do not necessarily have to wait until all probate matters have been completed. Do I Need a Will? A properly drawn will assures you that, upon your death, your probate property will be distributed as you intended. It is important that you review your will periodically with your attorney in order to keep it up to date. A will is also the mechanism for choosing the executor and commonly provides for the nomination of a guardian where there are minor children. A will also can dispense with the requirement of a surety bond, for which an executor or administrator might otherwise have to pay. Wills should be filed in the court as soon as possible after a person’s death. The law provides penalties for withholding or destroying a will. If you do not make a will, your probate property will be distributed according to the Ohio Statute of Descent and Distribution. Information from Ohio State Bar Association