What will happen to your digital assets when you pass away?  Who will take over your email, Facebook, or Twitter accounts?  Although it may seem silly to think about now, planning for how your electronic accounts will be handled after you die is an important part of the estate planning process.

While it is a good idea to include directions for handling your digital assets in your will, some service providers have simplified this process by allowing users to make an election in their account settings.  Facebook users can now appoint a "legacy contact"to manage their Facebook accounts after they pass away.  Before the legacy contact option became available, Facebook profiles were either deleted or frozen upon notification that a user had passed away.  With legacy contacts, Facebook profiles can now live on and be continually updated long after their original owners pass away.  Google offers a similar planning tool called the "Inactive Account Manager."  This feature allows users to control how their Google accounts should be handled after a designated period of inactivity.

Although Facebook and Google may be ahead of the game, it is likely that many online service providers will be offering similar planning options in the future.

Are you one of the 76 billion Baby Boomers in the United States who are headed toward retirement?  If so, Sharon Bandys, of The Mather Group, LLC, has created a helpful checklist of five financial planning tips as you look toward the future:

1. Make sure your spouse has an understanding of your financial assets.
2. Plan your funeral ahead of time.
3. Create an updated will.
4. Understand both spouses' Social Security benefits.
5. Maintain a cash reserve for potential expenses that may pop up.

Sharon's full article can be found here.

Are you one of the more than 50% of Americans who does not have an estate plan?  That’s right, more than half of all Americans have left no direction as to where they would like their assets to go after they pass away. 

Estate planning IS for everyone.  While thinking about death and what will happen to our things once we are gone is not something we love to do, science has proven that 100% of us will die at some point.  If you leave no plan for your family, you won’t be harmed, but your loved ones will be left with the burden of figuring out your affairs while trudging through a costly and hectic probate process.

Without an estate plan, you give a court permission to decide who gets your assets and who will raise your children.  If a court decided to divide your assets amongst your family members, would you trust all of your family members to handle your assets responsibly?  A trust can help in this situation, as a trust allows you to dictate how assets can be used to make sure untrustworthy or incapable loved ones cannot handle their newly-acquired assets inappropriately.  Do your loved ones know where they can find your assets?  It is important to make sure this information is available to prevent a wild goose chase after you pass away.

What about real estate – do you own valuable real estate that you hope to pass down through your family?  Or let’s say you own valuable or cherished personal property such as antique furniture or family heirlooms.  Family turmoil often results from a failure to designate specific beneficiaries for meaningful personal property.

Further, who are the beneficiaries on your retirement and other financial accounts?  Are they up to date?  If you have gone through a divorce, have you removed your former spouse as a beneficiary?  If not, your former spouse will still receive those assets even if  he or she has no other rights to your other assets by virtue of the divorce.

In addition to distributing your assets, your estate plan will nominate individuals to make medical and financial decisions on your behalf if you become incapable of doing so.  This process can become very tricky and stressful for your loved ones if you fail to appoint an individual to act on your behalf.

Establishing a basic estate plan is one simple gift that everyone can give to their loved ones.

If you have checking, savings, retirement, or investment accounts, do you know where the funds in your accounts will go upon your death?  While you can distribute assets to beneficiaries through your will, any designation you have made on your accounts will be honored first. Below are a few ways to avoid the probate process by passing financial assets outside of your will.

Beneficiary Designation: If you designate a beneficiary, and sometimes an alternate beneficiary, on a retirement or other type of account, the funds from the account will transfer to the beneficiary you have designated with your financial organization upon your death.  These funds will transfer directly without reference to your will, thus keeping these assets out of the probate process.

Payable on Death or Transfer on Death Designation: Some banks will allow you to make a "transfer on death" or "payable on death" designation.  This just means that upon your death, the funds from a savings account for instance will transfer to the POD or TOD designee you have selected.  Additionally, vehicles in Indiana and Ohio can be registered to transfer on death.  The POD/TOD designation is another simple way to transfer assets seamlessly outside of the probate process.

Joint Account Holders: Another way to transfer financial assets outside of a will is to add one or more account holders to your bank account so that the account is held jointly with survivorship rights.  Upon your death, the joint account holder with survivorship rights would assume ownership over the account.

The small steps you take today to arrange your affairs can be very helpful to your family and friends down the road.

As we begin a new year, I would like to take a moment to thank all of my wonderful clients for their business this past year!  Also, a huge 'Thank you!' to those who have provided word-of-mouth referrals to friends and loved ones.  Like any small business owner, I have the opportunity to do what I love because of the help of these referrals.  I have enjoyed meeting a number of fantastic people, and I look forward to what lies ahead.

Best wishes for a wonderful year, and in the words of Joey Adams, "May all your troubles last as long as your New Years resolutions."  Happy 2015!

While thoughts of your estate plan may seem to clash with the joy and merriment of the holiday season, the holidays can actually be a perfect time to discuss your future plans with family and loved ones.  Although we keep in touch with friends and family throughout the year, for many of us, the holidays provide a rare opportunity to have extensive visits with those who mean the most to us. 

During the holidays, we tend to have more time for deeper conversations with our loved ones than we may have at other times during the year.  Your close friends and family can provide excellent advice and feedback as you consider all of your options.  So what types of things could you discuss?  Here are a few ideas to get you started:

• Would your niece like your antique dining set after you pass away?  Are there any other specific items you own that a family or friend would truly treasure?
• Should your brother become your children's guardian if something happens to you?  Would he be willing to take on this responsibility?
• Is your best friend comfortable making decisions for you if you become incapable of managing your own medical care?
• Should you give your daughter the power to take over your finances if you become incapable of doing so?  Would this be okay with your daughter and your other children?
• Who would feel most comfortable taking on the role of personal representative and distributing your assets after you pass away?  Your friend?  Your mother?  Your nephew?

Including your friends and family in the estate planning process can be helpful to you, and it can prevent doubt and disagreement in the future by giving those you love a clear understanding of your wishes.  When the conversation comes to a lull, give it a shot. 

Best wishes for safe and happy holidays!

This week, I am celebrating one year in business!  Over the course of this first year, I have helped over 70 individuals in Indiana and Ohio with their estate planning needs.  A big thank you to all of my family and friends who have supported me, and especially to all those with whom I have had the opportunity to work this year.  Building a business has been one of the most exciting, terrifying, and rewarding challenges I have ever faced.  I am truly grateful for my wonderful clients, and for those of you who have believed in me and helped make this first year a success.

To celebrate the beginning of Year 2, please invite your friends and family to follow me on Facebook (for Ohio) and Twitter.  Again, I appreciate your continued support, and I look forward to many more years ahead!

If you are like many Americans, you may have put off your estate planning for years.  Now that you are getting older, you think that it is too late to get your plans in order.  The truth is, it's never too late to plan.  Every little bit of planning can help your loved ones manage your affairs both at the end of your life, and after your death.  Here are a few tips for quick planning that can save time, energy, and money for your loved ones:

1. Add joint account holders or make bank and investment accounts transferable or payable on death.  If you have a trusted friend or loved one to whom you would like money held in bank or investment accounts to go after your death, you might want to add that individual as joint account holder.  A joint account holder can handle your financial affairs should you become incapable of doing so.  Upon your death, the surviving joint account holder will take over the account without the involvement of a probate court.   If you prefer to keep your account in your name during your lifetime, you can designate an individual to whom the account should "transfer on death" or be "payable on death."  This quick planning technique can prevent your assets from being tied up in probate proceedings and allow a smooth transfer of your assets after death.

2. Make your real estate assets transferable upon death.  Indiana and Ohio have differing, but effective tools for making sure that your real property seamlessly transfers to the individual or individuals you choose upon your death.  In Indiana, a deed (called a Transfer on Death Deed) can be recorded during your lifetime to designate a beneficiary to whom your property should transfer upon your death.  After you pass away, the property will immediately transfer to the beneficiary upon the filing of a death certificate and an affidavit with the county recorder.  In Ohio, a Transfer on Death Affidavit can be recorded with the county recorder during your lifetime to achieve the same result.  Just as in Indiana, the recording of a death certificate and an affidavit with the proper Ohio county recorder will seamlessly transfer real property to the beneficiary selected in the TOD Affidavit.  As mentioned, a TOD Deed or TOD Affidavit cannot be created after the death of the property owner.  In both circumstances, property transfers are simplified as they occur outside of probate proceedings.

3. Establish joint vehicle ownership or designate a transfer on death beneficiary.  By holding title to your vehicle jointly with another individual, the vehicle becomes the sole property of the survivor upon your death.  You can also designate a beneficiary to take ownership of your vehicle upon your death by utilizing a transfer on death designation on your certificate of title.  Upon your death, your vehicle title will transfer directly to this beneficiary after just a few simple steps without the involvement of a probate court.

It is always best to plan ahead and be prepared for the unexpected.  However, if time is short, making a few quick changes can prevent major headaches for your loved ones down the road.

Let's be honest, death is not a popular topic of conversation for the average American.  Unfortunately, our discomfort with mortality often leads us to put off estate planning as long as possible.  Although it seems counterintuitive, estate planning is also important for life. 

Old age, unexpected accidents, and other everyday, non-life-ending events can bring about the need for common estate planning tools.  If you become incapacitated, even temporarily, who will manage your medical decisions and financial affairs?  It is important to appoint agents (or proxies) to handle these issues before they ever arise.  A health care power of attorney clearly indicates who should call the shots when it comes to your medical care in the event that you cannot.

Similarly, a durable power of attorney for financial decisions appoints an agent to manage your financial affairs in the event that you become incapable of doing so.  It is important to create this power before an accident or unexpected event occurs so that your agent can quickly step in when needed.

Finally, your living will dictates how you wish to live out your final days.  You may choose to have life prolonging medical care even if a physician has determined that you are in a terminal state.  Alternatively, you may choose to decline life-prolonging medical care once your condition has been deemed terminal, opting only for sufficient medical care to keep you comfortable as you pass away.  By putting your wishes on paper, you provide clear instructions for your family and loved ones who may otherwise face difficult, often controversial decisions as to your end-of-life care.

Estate planning is planning for living, not just for dying.

Summer is finally here!  Now is the time to enjoy the warmth and sunshine, mornings on the golf course, afternoons at the pool, evenings...pondering your estate plan?  The thought of what will happen upon your death or incapacity is likely not top of mind these days.  While it can be difficult to think about these things, planning ahead is important nonetheless.  If you are like many Americans, you may be putting off setting up an estate plan.  Well, what are you waiting for?  Here are five of the top reasons people avoid setting up an estate plan:

1. You don't plan to die soon.  You're a safe driver, you don't take risks, you work out and eat well - you plan to be around for a long time.  Besides, you're too young to die, right?  It's never too early to start planning for the future.  The benefit of having an estate plan in place is that you will save your family and loved ones the time, money, and headaches that result from unclear or non-existent directions as to how to handle your health care and finances, the distribution of your assets, and the care of your minor children if an unexpected event occurs.  While death is not the most enjoyable event to consider, it is inevitable and it pays to be prepared.

2. You don't have time.  In the modern world, we are all stretched for time.  Work, family, and other social and charitable obligations can easily consume all of your time and energy.  In reality, setting up an estate plan can be a quick and painless process.  After making a handful of important decisions, your attorney will take it from there.  In just a few hours, you can save your family and loved ones months or even years of turmoil.

3. You think it's too expensive.  While "do it yourself" estate planning software is available, it pays to have a qualified attorney handle creating a proper, customized estate plan that complies with your state's laws.  However, this process does not have to break the bank.  While some law firms may charge high rates or hourly fees, a straightforward, affordable plan is possible.

4. You think it's unnecessary.  Maybe you think things will just take care of themselves after you become incapacitated or pass away, or maybe you feel that you don't have enough assets to necessitate an estate plan.  However, an estate plan is important for appointing individuals to take care of your medical and financial decisions in the event that you become incapacitated.  Additionally, regardless of your net worth, you should not count on spending all of your assets before you die.  An estate plan will help your family and loved ones manage your affairs according to your wishes.

5. You find the process too complicated and intimidating.  A qualified attorney can smoothly guide you through the estate planning process.  While some decisions such as appointing an executor (or personal representative) or appointing guardians for your minor children can be difficult to make, your attorney can provide advice and recommendations suitable to your personal situation.

If you have a current will and other estate planning documents, where should those documents be stored?  If you do not store your estate planning documents with your attorney, it is important to keep these documents in a safe place.

Upon your death, a probate court will require the filing of an original copy of your will.  If an original copy cannot be located, there is a risk that your last wishes as outlined in your will may not be honored.  A fireproof safe or a fireproof cabinet in your home are great storage options.  Wherever you choose to store your estate planning documents, they should be accessible by loved ones in the event that you pass away.  Make sure to let your trusted family or friends know where your estate planning documents are located. 

A safe deposit box at a bank may not be the best storage option for your estate planning documents.  If you store your power of attorney or will in a safe deposit box at a bank, make sure that your loved ones are authorized to access the box.  If you do not authorize other individuals to access the contents of your safe deposit box, your bank may require your appointed agent or executor to get a court order just to access these documents.  By making sure your estate planning documents are easily accessible, your appointed agent and executor will be spared the hassle of seeking an additional court order just to gain access to your safe deposit box.  With your power of attorney and living will in hand, your appointed agent will have immediate ability to take control of your affairs when necessary without court intervention.  Additionally, your loved ones will be able to file an original copy of your will with the probate court easily and without delay.

I am very excited to announce that I will be expanding my estate planning practice to Ohio starting on Monday, May 12th, 2014!  I will be accepting clients by appointment at the law offices of Marsh & Marsh in Bowling Green, Ohio, where I will be practicing with my father, Michael Marsh.  My contact information for Ohio residents can be found below:

Marsh & Marsh Attorneys at Law
249 South Main Street
Bowling Green, Ohio 43402

Phone: 574-252-6099

Email: kwronalaw@gmail.com

If you are an Ohio resident interested in my estate planning services, please feel free to contact me at any time to schedule an appointment.  I would be delighted to work with you and your family to meet your estate planning needs.

We typically utilize wills to distribute our assets after death.  When we retain assets until death, the probate process will be involved and our wills dictate how we would like our appointed executor, or personal representative, to distribute our assets.  However, if you set up a trust during your lifetime, called an “inter vivos”  trust or a “living” trust, you can utilize your will to fund your trust with any assets that you did not transfer into the trust during your lifetime.

If you created a living trust, you may or may not have transferred all of your assets, including personal property, real property, or accounts, into the trust.  Your trust may be used to provide for the support of a loved one or for yourself during your lifetime.  Typically, income derived from trust property is distributed according to the terms of your trust.  Your trust also likely provides a blueprint for how the trust should proceed in the event of your death.  Upon your death, the trust may continue to operate unchanged, the distribution of trust assets may be modified, or the trust may terminate.

An effective estate planning tool for individuals who have a living trust is a pour-over will.  A pour-over will simply directs that all of the assets you own outside of your trust at death be “poured over” into your trust upon your death.  This means that after your death, assets that you did not place into a trust during your lifetime, whether purposefully or accidentally, become a part of that trust.  As such, the assets covered by your pour-over will can be managed and distributed according to the terms of your existing trust as opposed to your will.

A pour-over will allows you to retain full ownership and control over your assets until death, while still allowing your assets to pass according to your trust.  In directing that all assets go into an existing trust, a pour-over will can make the probate process go more smoothly by eliminating uncertainty as to how assets should be distributed.

When creating your Will, you will likely think about who should receive your most valuable and memorable personal possessions after you pass away.  Maybe you would like to pass along your heirloom jewelry to your daughter or a valuable painting to your grandson.  What options do you have to make sure that your personal belongings end up in the right hands after you pass away?

In Indiana, you have two options for making gifts of specific personal items upon your death.  The first option is to list specific gifts in the body of your Will.  In Ohio and a handful of other states, this is the only available option.  Alternatively, in most states, including Indiana, you may instead utilize a separate Memorandum of Tangible Personal Property to list specific gifts of personal property.  How do these options differ?

When gifts are listed in the body of your Will, the only way to add, rescind, or modify a specific gift is to redo your Will or make an amendment through a Codicil.  Any time you execute a Will or Codicil, formalities must be followed in order to make alterations binding.

On the other hand, as long as your Will refers to your separate Memorandum of Tangible Personal Property, you may add, rescind, or modify specific gifts of personal property in your Memorandum as you please without worrying about the formalities required for Wills and Codicils.  A Memorandum of Tangible Personal Property can be useful in eliminating doubt or disagreement among loved ones as to your last wishes.  Keep in mind that a Memorandum of Tangible Personal Property can be used only to pass tangible personal possessions.  Such a device cannot be used to pass real estate or intangible property such as stocks, bonds, or bank accounts.

There are a number of errors that can be made during the drafting process that can damage the effectiveness of your will.  Five of the most common mistakes to avoid in drafting your will include:

• Vague or Unclear Wording: When you are drafting a will, it is important to use clear and specific language.  After you pass away, your will should provide a clear understanding of your last wishes that can be easily carried out by your loved ones.  Clear wording can reduce confusion and tension after your death, leaving a helpful guide for friends and family.
   
• Forgotten Assets: Oftentimes when drafting a will, individuals will forget to account for certain assets, or perhaps new assets that will be acquired after the will is drafted.  Assets that are not passed by will are distributed according to state intestacy laws.  If assets are left out of your will, distribution of your assets upon your death may be delayed as the probate court determines who is entitled to the assets.  By utilizing a residuary clause in your will, you can ensure that any forgotten assets will pass to an individual of your choosing rather than according to a court order.
   
• Improper Appointments: When deciding who will be responsible for distributing your assets after death, it is important to select an Executor (sometimes called a Personal Representative) who will be capable of filling this often heavy role.  Additionally, if you have minor children, it is a good idea to appoint a competent Guardian in the event that your child is left with no surviving parents.  Assigning the roles of Executor and Guardian should not be taken lightly.  It can be helpful to discuss these decisions with potential appointees.
   
• No Updates: If you have had a child, acquired new assets, gotten married or divorced, or lost a loved one, you may need to update your existing will to account for these changes.  As stated above, any assets not distributed through your will are going to pass according to state intestacy laws.  If you made specific gifts or assigned roles to named individuals in your will, you may wish to make changes to account for new or severed relationships.
   
• Lost Wills: After you have created a will, it is important to let loved ones know where your original will can be found in the event that you pass away.  A probate court will require a signed original copy of your will.  If your will is lost or inaccessible after you pass away, the probate process could be delayed, distribution of your assets could be postponed, and your will could even be rendered ineffective.

The laws relating to the federal estate tax have varied over time.  It is important to understand the federal estate tax system as you develop your estate plan. 

As part of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, Congress granted a $5 million exemption for estate tax purposes beginning in the year 2011.  As such, only estates worth more than $5 million were subject to the federal estate tax.  This lifetime exemption amount (also called the “unified credit”) has been increased each year to account for inflation.  In 2012, the exemption amount was set at $5.12 million.  Last year, in 2013, the exemption amount was $5.25 million.  For those dying in the year 2014, the IRS has set the exemption amount at $5.34 million.

This lifetime exemption is called the “unified credit” because it actually takes into account the sum total of lifetime gifts made plus the value of one’s estate at the time of death.  So, if you choose to give away $5.34 million in gifts during your lifetime and you die in 2014, you will have used up your lifetime exemption amount before your death.  As such, your entire estate will be subject to the federal estate tax.  If you give away $2 million in gifts over your lifetime, the first $3.34 million of your estate will not be taxed.  Certain gifts such as those to your spouse or charities are not included in the calculation of lifetime gifts.  In addition, each year, every individual may give up to $14,000* in gifts to as many individuals as they would like without using up any of the lifetime exemption amount.  Only gifts made to individuals in excess of $14,000 over the span of one year count toward your lifetime exemption amount.

Another benefit of the unified credit is that it is portable.  This means that if you are married, any unused portion of your exemption amount automatically passes to your spouse upon your death.  If you are married, you and your spouse share a $10.68 million lifetime exemption this year.  So, if you die in 2014 having used up only $1 million of your exemption amount, your spouse’s lifetime exemption amount will be $9.68 million.

By reviewing your estate plan from time to time, you will ensure that your plan accounts for any changes in the federal estate planning structure.

*Applies to 2014, but subject to inflation adjustment in future years.

Once you have created your estate plan, it can be tempting to lock away your Will, Living Will, Trust, Power of Attorney, and other documents for safekeeping and forget about them for years to come.  However, it is important to view your estate plan as a set of living, breathing documents that require alteration from time to time to reflect changes in your life.

When you experience a major life event such as having a child, getting married, getting divorced, retiring, or losing a loved one, it may be a good idea to review your estate planning documents for any necessary updates.  Often, designated beneficiaries, guardians, trustees, or personal representatives may need to be changed to better reflect your current relationships and wishes.  Additionally, changes in your financial status or property ownership may necessitate a review of your estate plan to make sure your best interests and those of your loved ones are served.   An update to your estate plan can also accommodate your changed needs in the event of a health problem or the onset of a disability.

As your life and relationships change, make a point of reviewing your estate planning documents from time to time to ensure that your plan is still right for you and your loved ones.

Happy New Year!  To start 2014 out on the right foot, resolve to set in place your plans for the future.  It's never too soon to start planning your estate.  No matter your age, by planning ahead, you will feel better prepared to face the twists and turns life can take with confidence.  To begin, it can be helpful to discuss those "what if" situations with family and loved ones.  Including family in your decisions regarding the distribution of your assets and the care of your dependent children after death can help to reduce chaos should an unexpected event occur.

By setting up a Will, Living Will, Durable Power of Attorney, Health Care Power of Attorney, and life insurance policy now, you ensure that your assets will pass according to your wishes and not according to a probate court order.  In addition, you are able to provide some financial security for dependent individuals, including a spouse or children.  Establishing an estate plan is a simple way to gain peace of mind today and to protect your assets and your family in the future.

Best wishes for a safe, happy, and healthy 2014!

The answer is YES!  An estate plan is essential for all individuals regardless of wealth, property ownership, or familial status.  While a Last Will and Testament can provide your loved ones with a roadmap for distributing your assets after you pass away, a good estate plan can do so much more. 

As part of your estate plan, you can utilize Power of Attorney documents to appoint an individual to manage your financial affairs in the event that you become incapacitated.  Additionally, a Power of Attorney appointment can be used to designate an individual to manage your healthcare decisions should you become unable to do so.  Further, you can direct your loved ones on how to manage your end of life medical care through a Living Will.   Establishing a plan for your end of life care ahead of time through a Living Will can relieve some of the stress your family and loved ones will experience during your final days.

So, although an estate plan can be utilized to distribute your assets by will, an estate plan can also establish who will take care of your financial and healthcare decisions when you are unable to do so, and how you wish to live out your last days.

I wish you and your family safe and happy holidays!

The probate process is the court-supervised administration of a decedent's estate.  This process can take months or even a year to complete.  Only property included in the "probate estate" will be handled through the probate process.  The probate estate is comprised of any property owned by the decedent alone and not distributed before death or through automatic transfer at death.  Good planning can simplify the distribution of your assets at death by minimizing or even eliminating the probate estate.

Certain property will transfer automatically at death, including property held in joint tenancy with right of survivorship, or property held by a married couple as tenants by the entirety.  Additionally, bank accounts and other assets registered as payable-on-death or transfer-on-death will pass automatically at death.  Life insurance proceeds and retirement accounts will also pass without court intervention as long as a beneficiary has been named.  Finally, property held by the trustee of a living trust will not become part of the probate estate.

By taking the time to arrange your affairs today, you will save your family and loved ones time, energy, and money in the future.