will | Olivia K. Smith, Attorney at Law

A Child’s Inheritance in a Will

November 14, 2022Filed Under: Estate Planning

There is a situation few of us care to think about when we are considering transferring our property to our children. What should happen to our property if our children die before us?

I read that when making a will, I could leave my property to my children “per stripes.” Why is the law talking about us like we’re some kind of zebra?

The phrase is Latin and it is “per stirpes,” not “per stripes.” Some bits of property law are extremely ancient in origin and this is one of them.

If a child has died before the parent who leaves property through a will or trust, and that deceased child has passed without leaving any children, many would say that the property should be divided among the remaining children. That situation is pretty straightforward. Suppose that you had three children, and your will said to distribute the property to your children in equal shares “per stirpes.” Then one of your children died without children of their own. The “per stirpes” designation in your will would mean that your surviving children would split your property into two equal shares.

The complication comes, though, when one child has died leaving his or her own children. Let’s call those children “grandchildren.” Would you, as the parent leaving the property, want those “grandchildren” to split the share you had intended for your now-deceased child?

That would be the simplest solution and that is what “per stirpes” would do. If you had three children, and one died leaving two “grandchildren,” your will would direct that your two surviving children would get one-third each, and the surviving “grandchildren” would get one-sixth each. That is distribution “per stirpes.” The phrase means “by the branch.”

The problem there, though, is that from the grandchildren’s point of view, they get less than the other grandchildren. There are a couple of other options we can discuss with you. Or, you can do as most people do, opt for “per stirpes,” and leave it at that.

Zebras have nothing to do with it.

We hope you found this article helpful. If you have questions or would like to discuss your personal situation, please don’t hesitate to contact us at 513-771-2444.

Estate Planning: What You Need to Know

October 31, 2022Filed Under: Estate Planning

Despite its reputation as a rite of passage for the very wealthy, estate planning is simply the accumulation of real estate an individual owns, and most people own some or all of their own property. Property ownership includes individual as well as jointly owned bank accounts, stocks and bonds, retirement accounts, real estate, jewelry, vehicles, your online digital footprint, and even pets. Short of being utterly destitute, you have an estate, and planning for it helps to protect yourself, your family, and your loved ones.

According to Caring.com, fewer Americans than ever are engaging in estate planning. The number of adults who have a will or other types of estate planning documents has fallen nearly 25 percent since 2017. Astonishingly, the demographic of older and middle-aged adults are less likely to have wills and estate plan documents at roughly the same 25 percent rate. Additionally, a growing number of Americans lack the resources and knowledge as to how to get a will. Overall, the prevalence of estate planning documents since 2017 has shown a decrease of almost 25 percent.

In their annual survey, Caring.com posed the question to its participants as to why they have put off having estate planning documents, and increasingly people cite a lack of education or the perceived cost of estate planning as the most significant reason. Yet 60 percent of the same respondents think planning their estate is either somewhat or very important. Data shows that as a person’s income increases, their likelihood of having estate planning documents like a will, living trust, or advanced health care directives also increases. Still, the number of people with said documents continues to decrease, even in higher-income groups.

In 2020, study participants in the highest income group show a decrease of 26 percent regarding estate planning documents. Even those Americans with the resources to create a will feel it is something they can put off until later in life, which has disastrous consequences for their loved ones in the case of unexpected death.

caring.com

Estate planning is the process of outlining specific instructions as to how you want your money, and other property dispersed upon your death. It includes decisions about your medical care and final arrangements as well. Wills, trusts, and advanced medical directives are the three primary estate planning documents you need to understand and put into place as soon as possible.

A will instructs how to divide up assets, debt, personal property, and more. A will can cover all of your estate planning needs however, it does come with a few limitations. First, a court process called probate must be started upon death. During this sometimes lengthy process, a judge oversees the transfer of ownership of your property according to your will. Once a probate is opened, the will becomes public knowledge, as well as the property that the deceased owns. For those who wish to avoid court or who wish to keep their affairs private, a living trust may be the best option.

A living trust takes effect at the moment it is enacted while your will only becomes effective upon your death. Planning with a living trust can be more expensive, but it provides the advantage of avoiding probate court and keeps all of your information (and your beneficiaries’ information) private. Further, a living trust can provide for the management of your assets should you become disabled.

An advanced health care directive, like a living trust, is designed to take effect during your lifetime. This directive stipulates your end-of-life wishes as well as what should happen if you become incapacitated and unable to make decisions about your medical care.

A durable power of attorney covers who will make financial decisions for you if you are unable to. You can specify more than one agent, and you can be very specific about what that agent can do on your behalf, including the management of online accounts.

If you are ready to discuss your planning needs, we would be honored to help. If you have an existing plan, we would be happy to review that plan to make sure it still works for you given your current health and financial circumstances. Please don’t hesitate to contact us at 513-771-2444 If you have questions or would like to discuss your personal situation.

There Are Several Reasons Why a Will Is Important

September 5, 2022Filed Under: Estate Planning

Based on results of a Caring.com survey, Americans who have a will have experienced a modest increase of 2.5 percent over the last year. Overall, the percentage of those with a will continues to decline, 33 percent in 2021 versus 42 percent in 2017. The COVID-19 pandemic sees one in three people understanding the greater need for a will, but 31 percent of those acknowledging the need, did nothing about it.

Spikes in new cases of the coronavirus despite vaccination efforts, re-infections of vaccinated individuals, and increasing cases in younger, healthier people indicates COVID-19 challenges will plague the US and world populations for some time to come. If for no other reason, a pandemic should motivate you to create your will. Counterintuitive to the statistics, younger adults are more likely to follow through with a will creation than middle-aged and older adults.

Caring.com

Aside from procrastination as a reason for not having a will, Americans increasingly cite a lack of understanding about obtaining a will and do not know that attorney groups can create legal documents remotely. An attorney can help you develop as simple or complex a will and estate plan as your circumstances warrant without setting foot in their office space if need be.

Almost everyone has something of financial or emotional value they would like specific relatives or friends to inherit from them. A will acts as your voice after you are gone, ensuring your wishes are carried out. A valid and enforceable will greatly benefit your family, allowing you to protect a spouse and children. Your will designates who inherits your real property like a home or land you own and personal property like bank accounts, securities, jewelry, etc.

Besides determining how your property is distributed, a will can designate who will care for your minor children after you die. Without a will, the courts decide who cares for your children and their interests. Appointing a caretaker that you trust in your will affords you time to discuss how best to handle your children’s mental, emotional, and financial life preparedness.

Having a will allows you the option to disinherit individuals such as an estranged relative. In the absence of a will, the state will determine who inherits assets that may end up in the hands of someone you do not wish to receive your property. This intestate (dying without a will) distribution of your property varies by state and may not provide for the distribution you prefer. The absence of a will or other estate planning documents, like a living trust, can also lead to family strife.

Caring.com finds most Americans believe that at age 35, you should have a will in place, yet most Americans do not. Though many have started contemplating a will, most get no further than casual conversations with loved ones. Surprisingly the survey finds that 58 percent of respondents who don’t have a will say they do not think about or plan for it.

As the primary document for transferring your assets upon your death, your will is an essential part of your estate plan. As the COVID-19 virus continues to challenge all people’s health and well-being, it is reasonable and responsible to create a plan to preserve for your heirs what it took your lifetime to achieve.

We can help you determine whether a will is right for you, and we can help draft additional supporting documents, like healthcare directives, to support your overall plan and make sure your wishes are carried out. We hope you found this article helpful. If you’d like to discuss your particular situation, please don’t hesitate to reach out. Please contact our Cincinnati office by calling us at 513-771-2444 with any questions.

Think Twice Before Creating Your Own Estate Plan Documents

May 18, 2022Filed Under: Estate Planning

This is a question we hear all the time. Wouldn’t it be enough to just download a will, do a transfer-on-death deed for my land, put my kids on my bank account, and be done with my estate planning? It’s just not a good idea. For the plan to work as you would want it to, it should account for plenty of complications. A good plan should protect your spouse and your children from the loss of valuable government benefits if anybody is or becomes disabled. The plan should avoid the delay and expense of probate court. The plan should protect money from children’s creditors or divorce or remarriage. It should be crafted to serve family harmony and to avoid disputes between children as joint owners.

Even a relatively simple situation is made up of many moving parts. Internet documents and joint-ownership devices just won’t do the job.

Also, assembling the moving parts so they work smoothly is just the first step. Your estate plan needs maintenance too, just like your car has a “check engine” light. Major family events like serious illness or death, marriage, birth, or financial reversals are alerts that you should tune up your plan to reflect those changes. Your plan shouldn’t be “one and done.”

It takes expertise to coordinate the various strategies available. Don’t risk a result that will cause your family problems and unnecessary expense. Call us to create a plan that harmonizes the moving parts, so the gears will work together and you will leave the legacy you intended. If you’d like to discuss your particular situation, please don’t hesitate to reach out. Please contact our Cincinnati office by calling us at 513-771-2444 with any questions.

A Child’s Inheritance in a Will

Estate Planning: What You Need to Know

There Are Several Reasons Why a Will Is Important

Think Twice Before Creating Your Own Estate Plan Documents

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