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Estate Planning:

Wills and Trusts: The Basics

Estate Planning

Webinar Series

• Powers of Attorney & Medical Directives

• Why I Should Have An Estate Plan

• Wills and Trusts - The Basics: Wills and Trusts, the

differences and execution requirements. The webinar will

also provide an overview as to why a trust may be

necessary.

• All presentations can be found at www.brouse.com

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Estate Planning

Blog

For additional information, see

https://www.brouse.com/trusts-estates-blog

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Disclaimer

• Any opinions offered are our own and not those of Brouse McDowell LPA. This presentation is provided for general informational and educational purposes only. No information contained in this presentation is to be construed as legal advice. This presentation is not a contract for legal advice and does not establish an attorney-client relationship.

• Entering into an attorney-client relationship is a mutual agreement, requiring the exchange of information and the execution of an engagement letter between the client and Brouse McDowell LPA.

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INTRODUCTION

Wills and Trusts: The Basics

What’s

Important to You?

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Estate Planning

is for people

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Estate Planning

is for property

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You need the proper

Documents

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What Are Estate Planning Documents?

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-Durable Power of Attorney

-Health Care Power of Attorney and Living Will

-Last Will and Testament

-Trust

WHY DO I NEED A WILL

AND/OR TRUST?

Essential Documents:

Last Will and Testament Last Will and Testament- Your Last Will and Testament provides for the

distribution of your probate assets, nomination of a guardian for your

minor children and designates an Executor who is responsible for finalizing

your estate. It is important to keep in mind that a Last Will and Testament

only controls probate assets, which are assets that do not have a

beneficiary, are not jointly owned with rights of survivorship or are not

placed in trust during your life. An Executor’s duties include collecting all

probate assets, paying debts, estate taxes, if any, and final expenses,

preparing final tax returns, and distributing the remaining balance to the

beneficiaries.

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Last Will and Testament:

Signing Requirements- Signed at the end by the Testator

whose signature is attested and subscribed in the conscious

presence of the Testator by two or more competent and

disinterested witnesses who witnessed the execution of the

document by the Testator or heard the Testator acknowledge

his or her signature.

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Last Will and Testament:

What Does It Do?

-Memorializes your wishes as to disposition of property that is

titled in your name without a beneficiary designation or joint

owner with rights of survivorship

-Nominates individuals to serve as guardian of your minor

children

-Becomes public record when it is filed with the Probate Court

upon your death

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Trust Agreements Trust Agreement- There are many types of trust agreements to achieve your estate

planning goals and objectives. Trusts can be irrevocable or revocable and can be

used to protect and preserve your assets, to make gifts to your children without

giving them control over the gift, to reduce or eliminate estate taxes, to retain assets

until a beneficiary reaches a certain age or for the beneficiary’s lifetime, to provide

support for disabled beneficiaries and afford privacy. Trusts are also used to

implement sophisticated and complex business succession and charitable giving

plans. Careful consideration should be given to the designation of your Trustee as

the Trustee will oversee the trust (including the investment of trust assets) be

responsible for payment of expenses, ensure that tax returns are filed, and disburse

the trust assets pursuant to the terms of the trust agreement.

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Trust Agreements Signing Requirements- Signed at the end by the Settlor and,

typically, the Settlor’s signature is witnessed and signed by two (2)

disinterested witnesses and/or executed by the Settlor in the

presence of a Notary Public. However, there is no statutory

requirement in Ohio that a Settlor’s signature must be witnessed or

notarized for a trust agreement or trust amendment to be effective

but it will make it much more difficult to withstand challenges by an

unhappy beneficiary if the Settlor’s signature is neither witnessed nor

notarized.

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Trust Agreements:

What Do They Do? -Irrevocable v. revocable

-Beneficiaries and ages for distributions

-Creditor protection

-Tax benefits

-Charitable bequests

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Wills and Trusts:

Differences: Why Both Are Needed

-Will disposes of assets under the jurisdiction of the probate

court in a shorter length of time

-Will is still necessary to designate guardian of minor children,

transfer assets not in the trust, provide Executor should lawsuit

(such as wrongful death claims) be necessary

-Trust affords privacy, ability to provide and protect loved ones

and potential tax benefits

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Wills and Trusts:

Integrating Your Estate Plan -Review current estate plan and assets

-Review assets in light of objectives

-Discuss objectives and wishes for your estate plan

-Providing and protecting children/beneficiaries

-Creditor and asset protection

-Reduction or elimination of estate taxes by maximizing deductions

and credits

-Business succession planning

-Charitable bequests 19

Property Ownership:

Understanding The Different Types

-Analyze and review probate v. non-probate assets

-Important because beneficiary designations supersede a Last

Will and Testament and/or Trust Agreement

-Determine ownership, beneficiaries and how assets are titled

such as sole ownership, joint with rights of survivorship,

transfer on death or payable on death

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Asset Titling:

Completing The Plan -Important to ensure that your estate plan is followed

-Once an estate plan is in place, the final step is to title assets in the trust or make sure

the beneficiary designations on accounts, IRA’s, real property is in line with the estate

plan and your objectives and goals

-Recommendations on where to keep original documents

-Follow up and review at least every three (3) years or when a significant change

occurs in your life

-your health, the health of a family member or a beneficiary changes

-your assets change significantly

-change in your family situation or that of a beneficiary

-changes in estate, gift and tax law

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Closing Thoughts

The current coronavirus pandemic has brought to the forefront

the importance of estate planning documents and

implementing an estate plan. One of the most important

things you can do for yourself and your family is to work with

an experienced estate planning attorney to prepare an estate

plan to ensure your objectives and wishes are met and provide

peace of mind that your family is protected.

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Next Up

Please continue to follow us for future updates,

webinars, client advisories and blogs at:

www.brouse.com

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Thank you!

Lori R. Kilpeck Julie E. Firestone 600 Superior Ave. E, Suite 1600 388 S. Main Street, Suite 500 Cleveland, Ohio 44114 Akron, Ohio 44311 [email protected] [email protected]

© 2020 Brouse McDowell - 1092048

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