One of the most effective strategies in estate planning is to use a trust to avoid probate. However, simply creating a trust is not enough. Properly titling your assets to the trust is key.

How trusts avoid probate

A trust is a legal arrangement where one party (the trustee) holds and manages assets for the benefit of another party (the beneficiaries). By transferring ownership of your assets to a trust, you can avoid the probate process altogether.

When assets are titled in the name of a trust, they are considered part of the trust’s estate, rather than the individual. The trust’s terms dictate how and when the assets are distributed. Since the trust continues to exist after your death, there is no need for probate to determine asset distribution.

The importance of properly titling assets

Creating a trust alone does not ensure that your assets will be protected from probate. For the trust to effectively avoid probate, you need to transfer ownership of your assets into the trust. This process is known as “funding” the trust or “titling” assets to the trust.

Assets not titled in the name of the trust remain part of your individual estate. If these assets are not transferred to the trust before your death, they will likely go through probate, defeating the entire purpose of setting up the trust.

Transferring assets to the trust also ensures that your instructions are carried out as intended. If assets are not properly titled, they may be subject to conflicting claims or legal challenges. This can make the distribution process take longer.

How to title assets for a trust

The process of titling assets to a trust can vary, depending on the type of asset. It’s important to work with the estate planning attorneys at Dworken & Bernstein to ensure your trust is titled and funded properly.

For example, to transfer real estate into a trust, you must execute a new deed that names the trust as the owner. This deed must be filed with the county recorder’s office where the property is located. For valuable personal property, such as jewelry, artwork or collectibles, you may need to create a written assignment or bill of sale transferring ownership to the trust. Similarly, it might also be useful to update any relevant insurance policies.

Working Dworken & Bernstein makes trust creation and titling easy. Reach out to our firm today to get started.

General timeline

The probate process begins with the filing of the will (if there is one) and a petition to open probate in the appropriate Ohio probate court. This is usually done by the executor named in the will or, if there is no will, by an interested party. The court will then issue letters of authority, officially appointing the executor or administrator to manage the estate.

Next, the executor must notify all beneficiaries of the probate proceedings. They are also responsible for taking an inventory of the deceased’s assets, which includes real estate, bank accounts, investments, personal property and any other valuables. This inventory must be filed with the probate court within three months of the executor’s appointment.

The executor is then responsible for paying the deceased’s outstanding debts and taxes from the estate’s assets. This can involve selling property if the liquid assets are insufficient to cover these obligations. Creditors typically have six months from the date of death to file claims against the estate.

Once debts and taxes have been paid, the executor can distribute the remaining assets to the beneficiaries according to the terms of the will or, if there is no will, according to Ohio’s intestacy laws.

After all assets have been distributed, the executor will file a final accounting with the court and request that the estate be closed. The probate judge will review the accounting, and if everything is in order, will officially close the estate.

General probate duration

The probate process in Ohio typically takes between six months to a year to complete. However, if the estate is particularly large or complex, or if there are disputes among beneficiaries, the process can take significantly longer. Conversely, smaller estates or those with clear, uncontested wills may proceed more quickly.

Release from administration

For smaller estates, Ohio law provides an expedited process known as “Release from Administration.” This can significantly shorten the probate timeline. An estate can be released from administration if its total value is less than $100,000 and it all goes to a surviving spouse, or if the assets are $35,000 or less and go to other beneficiaries. In such cases, an attorney may file a request with the probate court to forego the full administration process.

Similarly, if the value of the estate is less than $5,000, a Summary Release from Administration may be appropriate. This further simplifies and expedites the process.

For help with probate or release from administration, contact the estate planning attorneys at Dworken & Bernstein today.

In Ohio, if you die without a will, the state steps in and distributes your assets according to intestate succession laws. This can lead to unintended consequences, especially for families with unique circumstances.

What is intestate succession?

Intestate succession dictates how the probate court distributes your property if you die without a will. Here’s a simplified breakdown of who inherits under Ohio law:

• Surviving spouse: If you’re married and have no children, your spouse inherits everything. If you have children from a previous relationship, they will inherit alongside your spouse. If your children are all mutual to you and your spouse, then your spouse will inherit everything.
• Children: If you have children but no spouse, they inherit your estate equally.
• No spouse or children: Things get more complex if you don’t have a spouse or kids. The estate may go to parents, siblings or even extended family, depending on who survives you.

The pitfalls of intestacy

While intestate succession provides a framework, it may not reflect your wishes and can lead to several problems:

• One size doesn’t fit all: Intestate succession laws are impersonal and inflexible. They don’t consider your specific desires. You may want to leave something to a friend, charity or a specific child more than others. A will allows you to personalize your wishes and distribute your assets according to your values.
• Blended families: Ohio’s laws may not be ideal for blended families. Intestacy can lead to confusion and conflict over inheritance, especially if you have children from a previous relationship. A will ensures your spouse and children from previous relationships are provided for as you see fit, minimizing the potential for disputes.
• Minor children: If you have minor children, a will allows you to appoint a guardian to care for them after you’re gone. Intestacy leaves this decision to the court, which can be a lengthy and stressful process for your loved ones during a difficult time. You can also use your will to establish a testamentary trust, which can provide financial security for your children until they reach adulthood.
• Familial conflict: A well-drafted will reduces the chances of disputes among family members over your assets. Intestacy laws can be complex and leave room for interpretation, potentially leading to legal battles that can erode family relationships and devour your estate’s value in attorney fees. A clear and concise will minimizes ambiguity and ensures your wishes are known.

An estate planning attorney can guide you through the process of creating a will that reflects your wishes and safeguards your legacy.  Contact a Dworken & Bernstein estate planning attorney today to create a will that protects you and your loved ones.

Living wills

A living will, also known as an advance directive or healthcare directive, is a legal document that outlines your preferences for medical treatment in case you become unable to communicate your wishes due to illness or incapacity. It typically covers scenarios such as life-sustaining treatments, resuscitation, and end-of-life care.

When to use:

• Terminal illness: If you receive a terminal diagnosis, living wills specify your end-of-life care preferences.
• Severe injury or illness: In situations where you might face permanent unconsciousness or vegetative state, you may outline your treatment preferences.
• Medical intervention concerns: Regardless of age, having a living will ensures your desires regarding medical interventions are known.

Healthcare power of attorney

A healthcare power of attorney (HCPOA), also known as a healthcare proxy or durable power of attorney for healthcare, appoints a trusted individual to make medical decisions on your behalf if you’re unable to do so. This person, known as your healthcare agent or proxy, should be someone who understands your wishes and can advocate for you effectively.

When to use:

• Comprehensive healthcare planning: In addition to a living will, appointing a healthcare power of attorney offers an extra layer of protection for your healthcare decisions.
• Complex medical situations: These powers of attorney are useful if you have complex medical needs—or anticipate potential disagreements among family members regarding your care.
• Geographical issues: This can be useful if if you live far from family members or friends who would otherwise make decisions for you.

Using an HCPOA ensures that someone who knows your values and preferences is making medical decisions on your behalf. They allow your healthcare agent to adapt decisions to changing circumstances and medical information, and offer legal protection against potential disputes over your care.

Durable power of attorney

A durable power of attorney (DPOA) is a broader legal document that grants someone the authority to make financial and legal decisions on your behalf if you become incapacitated. Unlike a healthcare power of attorney, which focuses solely on healthcare decisions, a DPOA covers a wider range of affairs.

These are useful if you want to ensure someone can manage your finances and assets if you’re unable to do so, especially if you own a business and need someone to oversee its operations in your absence.

Living wills, healthcare powers of attorney and durable powers of attorney ensure your wishes are respected and your affairs are managed according to your preferences. Call the estate planning attorneys at Dworken & Bernstein to get started.

A TOD designation is a legal arrangement that allows certain assets to pass directly to designated beneficiaries upon the owner’s death, bypassing the probate process. Assets that can typically have TOD designations include bank accounts, investment accounts, real estate, vehicles and securities.

How do TOD designations work?

When you designate a TOD beneficiary for an asset, you retain full ownership and control of the asset during your lifetime. However, upon your death, ownership automatically transfers to the designated beneficiary without the need for probate court involvement. This streamlined process can save time and money and helps to avoid probate.

Benefits of using TOD designations

Here are some benefits of TOD:

• Avoid probate: One of the primary advantages of TOD designations is that they bypass the probate process entirely. Probate can be time-consuming and costly, and assets subject to probate may be tied up for months or even years before being distributed to heirs.
• Privacy: Probate proceedings are part of the public record, which means anyone can access information about your estate after your death. By using TOD designations, you can maintain privacy.
• Direct distribution: TOD designations allow assets to pass directly to beneficiaries without the need for court intervention. This direct transfer ensures that beneficiaries receive their inheritances more quickly and efficiently.
• Flexibility: TOD designations are revocable during the owner’s lifetime, providing flexibility to make changes as circumstances or relationships evolve. Owners can easily update or revoke TOD designations as needed without the paperwork that’s required when altering a will or trust.

TOD considerations

While TOD designations can be a good estate planning tool, they should be used in conjunction with a comprehensive estate plan, to ensure that TOD designations align with your overall goals. It’s important that you understand how the assets will be distributed and to whom.

Furthermore, TOD designations can simplify the transfer of assets, but they may have tax implications depending on the type of asset and its value. Consult with a financial advisor and your Dworken & Bernstein estate planning attorney to understand the potential tax consequences that could affect your TOD designations.

To create your own comprehensive estate plan, reach out to Dworken & Bernstein today.

Here are ways to title different types of assets:

• Bank and other financial accounts: Designating beneficiaries for financial accounts, including bank accounts, retirement accounts and life insurance policies, is a straightforward way to ensure that funds are distributed according to your wishes. By completing beneficiary designation forms provided by financial institutions, you can specify who will receive the proceeds of these accounts upon your passing. These are typically called transfer on death beneficiaries.
• Business interests: If you own interests in a business, such as shares in a corporation or membership interests in an LLC, plan for their transfer in your estate plan. You can designate beneficiaries for these interests through operating agreements, shareholder agreements or transfer on death designations, ensuring continuity of ownership and management.
• Real estate: Titling real estate property properly is key in estate planning. Options such as joint tenancy with rights of survivorship and transfer on death deeds allow for the seamless transfer of property to surviving co-owners or designated beneficiaries upon the owner’s death, bypassing probate.
• Vehicles and personal property: In many states, including Ohio, vehicles can be transferred outside of probate by completing transfer on death beneficiary designation forms. This allows for the transfer of ownership of cars, boats and other vehicles (such as campers or RVs) directly to designated beneficiaries upon the owner’s death, which avoids the need for probate.
• Other assets: Many assets, such as artwork, collectibles and family heirlooms, may not have titles but still hold significant value. In your estate plan, you can specify who will inherit these non-titled assets by including them in your will, create a trust to ensure they avoid probate or talk to your Dworken & Bernstein estate planning attorney to discuss other options.

Titling assets and designating beneficiaries are key parts of estate planning. Working with an experienced estate planning attorney can help streamline the transfer of property and assets to your heirs while minimizing their administrative burdens and potential conflicts. To learn more about your estate planning options, reach out to Dworken & Bernstein today.

Choosing the right executor isn’t a matter of simply appointing a close relative or friend. In fact, it’s best to talk to your preferred candidates to ensure they are willing and able to manage your estate. If your executor declines the responsibility after you’ve passed, the probate court may appoint an administrator.

The estate planning attorneys at Dworken & Bernstein encourage our clients to consider the following as they ponder the role of executor:

Trustworthiness and responsibility

Choosing an executor requires careful consideration of an individual’s trustworthiness and sense of responsibility. The executor will be entrusted with managing your financial affairs, paying debts and distributing assets according to the terms of your will or applicable laws.

The executor of your estate should also possess strong organizational skills to manage complex tasks such as filing legal documents, communicating with beneficiaries, and overseeing the distribution of assets.

Trust is paramount. Select an individual who is known for their reliability, honesty and commitment to fulfilling their duties with integrity.

Legal and financial acumen

The executor of your estate may be required to navigate legal and financial issues. Selecting an executor with a solid understanding of these aspects can streamline the process.

While not mandatory, possessing a basic understanding of probate law and estate administration processes is beneficial. This knowledge can help the executor make informed decisions and avoid potential pitfalls. Alternatively, you can appoint a professional, such as an estate attorney, to act as the executor of your estate.

Managing estate assets, debts and potential tax implications requires financial literacy. An estate executor should be comfortable managing financial matters, working with accountants and/or financial advisors if necessary.

The executor of your estate should be detail-oriented to ensure accuracy of financial records, inventory of personal items, and fulfilling legal requirements associated with your estate.

Open communication and diplomacy

Estate execution involves ongoing communication with grieving family members and possibly other beneficiaries named in the will. The ability to openly and diplomatically communicate with them throughout the process will help minimize misunderstandings. Well-informed beneficiaries foster trust and cooperation.

Conflicts may arise among beneficiaries or with creditors, therefore it is beneficial for the executor of your estate to possess effective conflict resolution skills in case of any disputes.

Estate planning ensures your assets are properly distributed to your loved ones according to your wishes and directives. It is never too early to plan ahead.  Contact Dworken & Bernstein today to schedule a consultation with one of our highly experienced and personable estate planning attorneys.

Why include business succession planning in your estate plan?

Businesses often represent a lifetime of dedication, hard work and passion. Neglecting to include a comprehensive business succession plan in your estate could jeopardize the continuity of your enterprise.

A well-crafted business succession plan facilitates a smooth transition of ownership and management, minimizing disruptions to operations and preserving the value of the business. In turn, clear guidelines on succession help prevent potential conflicts among family members or business partners. This encourages a harmonious transition and preserving relationships. Finally, a thoughtfully designed succession plan considers the financial implications, ensuring that the value of the business is preserved and can be passed on to heirs or successors.

Successors and leadership

One of the first steps in business succession planning is identifying potential successors. Whether within the family or among key employees, this process involves assessing competency and leadership development.

You should assess the skills and capabilities of potential successors to ensure they are well-equipped to lead the business successfully. Once your successors have been chosen, be sure to implement training and development programs to train them. This provides them with the necessary skills and knowledge to take on leadership roles.

Legal structures for business succession

Choosing the right legal structure for your business succession plan is critical. Options include:

• Buy-sell agreements: These agreements establish a predetermined process for the sale or transfer of business interests in the event of specific triggering events, such as retirement or death.
• Family Limited Partnerships (FLPs): FLPs provide a structure for transferring ownership to family members while maintaining control and providing tax advantages.
• Trusts: Trusts can be utilized to hold and transfer business interests, offering flexibility and the ability to dictate the terms of succession.

Financial considerations

Business succession planning involves careful financial considerations. Determine the fair market value of the business to guide decisions on distribution and ensure fairness among heirs or successors. You may also wish to explore financing options for the succession plan, such as life insurance policies or installment payments, to ease the financial burden on successors.

Plan for your business succession needs

Business environments evolve, and so should your business succession plan. Regularly review and update the plan to account for changes in the business landscape, family dynamics or the capabilities of potential successors.

For assistance incorporating business succession planning into your estate plan, contact Dworken & Bernstein today.

What are digital assets?

Digital assets encompass a range of online and electronically stored content and information, including:

• Social media accounts: Social media accounts might include Facebook, Twitter, Instagram and other platforms.
• Email: These accounts often include significant personal, sensitive information.
• Online banking and investment accounts: Don’t forget your online checking, savings and investment accounts.
• Digital photos and videos: These items can be stored on your computer, cloud services or social media.
• Cryptocurrency: Crypto may include Bitcoin, Ethereum and other digital currencies.
• Digital media: Collections of digital media often include e-books, music, television and movies.
• Business and personal websites: This category encompasses domain names, blogs and e-commerce sites.
• Intellectual property: You may have copyrighted content, patents and/or trademarks.

Why make a plan for your digital assets?

Although many people don’t think of digital assets the same way they might think of personal items or real property, there are a few reasons you should make a plan:

• Preserve your digital legacy: Digital assets often have sentimental value, including family photos and cherished memories. Proper estate planning can ensure that your loved ones have access to these files after your passing.
• Protect your financial interests: Many digital assets have monetary value, such as cryptocurrency or online investment accounts. Without a plan in place, these assets may be lost or forgotten, depriving your beneficiaries of their rightful inheritance.
• Safeguard your personal information: Email accounts and other digital platforms may contain personal information, financial data or confidential communications.

Estate planning considerations

Here’s what to consider when making a digital estate plan:

• Inventory: Start by creating a comprehensive list of your digital assets, including account names, login credentials and any instructions for their management or distribution. Store this list in a secure place. Consider sharing this information—or at least where to find it after your death—with your executor.
• Password management: Consider using a secure password manager to store and share your login credentials with your digital executor or trusted individuals. Update this information regularly.
• Specific bequests: Clearly outline your intentions for specific digital assets in your will or trust. For example, you might specify who should receive access to your social media accounts, digital photos or cryptocurrency holdings.
• Platform policies: Familiarize yourself with the terms of service for digital platforms and online accounts. Some services have specific procedures for transferring or deleting accounts after the owner’s death. Complying with these policies can simplify the process for your executor.
• Legal documents: Work with Dworken & Bernstein to incorporate digital asset provisions into your estate planning documents, ensuring they align with the laws and regulations in your jurisdiction.
• Regularly update: As your digital assets grow and change, remember to regularly review and update your estate plan.

To create your own comprehensive estate plan, reach out to Dworken & Bernstein to schedule a consultation.

Who can be your alternative heirs?

People without immediate heirs can take proactive steps by designating a beneficiary to inherit their assets. Your chosen beneficiary can be a relative, a friend or even a charitable organization. This allows you to maintain control over the distribution of your assets.

• Friends: Close friendships often become an integral part of one’s life. If you have dear friends whom you consider family, you may choose to leave your assets to them. It’s essential to clearly outline your intentions in your will. Consider discussing your decision with your friends to ensure that they are comfortable with the responsibility and aware of your wishes.
• Extended family: Even without a spouse or children, you may have relatives who hold a special place in your heart. Nieces, nephews, cousins and siblings could be potential beneficiaries. When considering extended family members, it’s crucial to be specific in your will to avoid any ambiguity or potential conflicts.
• Charities and non-profits: For those who wish to leave a lasting impact beyond their immediate circle, philanthropy offers a meaningful avenue. Choosing to allocate your assets to charities, non-profit organizations or causes you are passionate about can be a fulfilling way to contribute to the greater good. Consider involving your friends and family in the decision-making process to ensure everyone is aware of your intentions.

What can you leave to your heirs?

You have the flexibility to bequeath a range of assets to your designated heirs. This encompasses real estate, including homes, land and investment properties. Financial assets such as bank accounts, stocks, bonds, mutual funds and retirement accounts can also be left to beneficiaries.

Vehicles, whether cars, motorcycles, boats or other means of transportation, can be passed on to chosen heirs. Business interests can be transferred to heirs either through a will or other legal arrangements. Insurance proceeds, particularly from life insurance policies, can be designated to specific beneficiaries.

Additionally, everyday personal belongings and heirlooms, like jewelry, art, furniture and electronics can be distributed among heirs. To ensure a seamless and legally sound transfer of these assets, clearly articulate your wishes in a will or through other legal mechanisms.

To create your own comprehensive estate plan, reach out to Dworken & Bernstein today.