School is out and summer is finally here!  For many, that means it's time for a long-awaited vacation away from home.  Whether you are heading to Disney World, taking a cruise, or relaxing at a nearby lake this summer, make time to review your estate plan before you take off.  Below is a quick and easy checklist to make sure your plan is ready to go:

1. Review Beneficiary Designations - If you have a will, you have probably designated beneficiaries to receive your probate assets (meaning assets that will pass through the probate process instead of automatically) if you pass away.  Keep in mind that non-probate assets such as retirement accounts, life insurance policies, and other financial assets may include beneficiary designations as well.  Transfers to these beneficiaries will occur almost automatically and outside of the probate process upon your death.  Take a quick look at your probate and non-probate beneficiary designations to make sure your assets will transfer according to your current wishes if something happens to you.

2. Update Powers of Attorney - It is important to make sure you have powers of attorney established in the event that you are in an accident and need someone to make medical or financial decisions on your behalf.  If you have not established powers of attorney and something happens to you, a court will intervene to appoint someone to handle these decisions on your behalf.  This process can be expensive and time consuming for your loved ones.  Planning ahead will save time, money, and headaches for everyone involved.

3. Designate a Guardian - If you have young children, you will want to make sure you have made a guardianship appointment in your will.  If you do not select an individual to take over guardianship of your children in the event of your death, a court will make a selection instead.  Additionally, you will want to select a trustee to manage any assets you plan to pass to young children should something happen to you.  This includes assets passed by will, or through life insurance polices, retirement accounts, and other non-probate assets.

4. Make Documents Accessible - Before you leave for vacation, store your estate planning documents in a safe place, and let your loved ones know where they can be found and how they can be accessed if necessary.  A lost or hidden estate plan will be of no use to anyone.

5. Don't Wait! - You have spent months or even years planning and saving for your vacation, so why put off updating your estate plan until minutes before you leave?  Updating your estate plan doesn't have to be arduous - get started today!

Have a safe and happy 4th of July weekend!

After the shocking news of Prince's death and subsequent reports that he appears to have died without a will or other estate plan in place, you might be wondering what this all means.  Reuters recently published a comprehensive piece on the impact Prince's inaction could have not only on the distribution of his assets, but on his legacy for years to come. 

For many Americans, the largest asset possessed at time of death is real estate.  When it comes to your estate plan, one way to transfer real estate, whether land, a house, or both, is through a bequest by will.  Real estate can also be transferred through use of a trust.  Indiana and Ohio offer an alternative option for those who wish to gift their real estate to specific individuals at the time of their death.  This alternative option utilizes a Transfer on Death Deed and allows owners of real estate to transfer their property outside of the probate process.

The real estate transfer on death option works much like the transfer on death or payable on death designations that banks and financial institutions utilize for the transfer of financial assets after death.  By executing and recording a Transfer on Death Deed, the owner of real estate, called the "grantor," can seamlessly transfer his or her real estate to a named beneficiary or multiple beneficiaries at the time of the grantor's death.  During his or her lifetime, the grantor retains ownership of the real estate.  Upon the death of the grantor, ownership of the property can be transferred quickly by simply recording an Affidavit of Death with the recorder of the county in which the real estate is located. 

Designating a transfer on death beneficiary may seem a bit confusing.  Here are a few helpful facts about the transfer on death option for real estate transfers:

1. After executing and recording a Transfer on Death Deed, the grantor retains full ownership of the property.  This means that the grantor is not subject to eviction by the beneficiary, and the grantor maintains his or her homestead exemption during the life of the grantor.

2. The grantor can still mortgage or sell the real estate during his or her lifetime even after making the transfer on death designation.  The sale of real estate cancels a transfer on death designation, but the grantor can certainly make the designation on any new real estate purchased.

3. The transfer on death designation can be changed or removed from the grantor's real estate at any time.

4. Real estate that transfers on death is transferred outside of the probate process upon the death of the grantor, which can save time and money.

If you are looking for ways to avoid the probate process, a Transfer on Death Deed may be an option to consider.

Welcome to 2016!  If getting your estate plan in order is one of your resolutions for the new year, take a look at this quick list of changes to 2016 estate planning law compiled by financial services company The Motley Fool.  Even if you already have an estate plan in place, it is helpful to understand how these changes could impact your estate plan. 

1. The lifetime exclusion amount, or the amount of assets an individual may pass free of tax during life or after death, increases to $5.45 million in 2016.
    
2. Individuals may give gifts of up to $14,000 to any number of individuals this year before the lifetime exclusion amount even comes into play.
    
3. The federal tax rate for taxable estate assets is 40% this year.
    
4. The lifetime exclusion amount is still portable, meaning spouses can utilize any unused portion of a deceased spouse's lifetime exclusion amount if the proper election is made.  As such, married couples can take advantage of a $10.9 million lifetime exclusion amount this year.
    
5. Both Indiana and Ohio have done away with estate taxes, so state level estate taxes are not a concern for Indiana and Ohio residents this year.

Here's to a safe and happy 2016!

Looking for a last minute gift idea for your family and loved ones this holiday season?  How about putting together an effective estate plan to protect them in the future?  The gift of a solid estate plan can save your family and loved ones time, money, and headaches down the road.  It is important to put in the time now to make sure your affairs are in order as mistakes in your estate plan can have devastating consequences after your death.  A piece on the website Financial Planning highlights ten major celebrity estate planning mistakes to avoid:

• Appointing an untrustworthy trustee or executor
• Failing to clarify intent
• Putting off estate planning until it is too late
• Making verbal promises outside of the plan
• Failing to fund a trust
• Failing to make documents accessible to loved ones
• Creating unenforceable documents
• Failing to update estate planning documents after major life events
• Creating "do it yourself" estate planning documents
• Failure to establish an estate plan at all

Wishing you a happy and safe holiday season and all the best in the new year!

This week marks two years in business!  Thanks to the support and referrals of many friends and family members, year 2 was a great success.  Over the past two years, I have had the opportunity to assist over 120 individuals with their estate planning needs.  Thank you to all of my clients - it has been a pleasure working with you!  I look forward to what lies ahead in year 3 and beyond! 

Make sure to follow me on Facebook and Twitter for estate planning updates.

If you or someone you know have lost a loved one, you have probably heard or even experienced the horror stories of feuding families and missing estate plans.  Minimizing stress and maximizing clarity should be of the highest priority when you are creating your estate plan.  Brian Vnak of MartketWatch recently put together four tips to reduce stress for your surviving loved ones and for those who will handle your estate after you pass away.

1. Consider what your beneficiaries want when dividing up your assets.

2. Explain your intentions to your family now to avoid fighting and hurt feelings after you pass away.

3. Gift assets during your lifetime to decrease the size of your estate and to "test" beneficiaries' capacity to handle assets.

4. Consider your beneficiaries' tax brackets when deciding how to distribute your assets.

By putting these four simple tools to use as you create your estate plan, you can assure peace of mind for you and your family.

Do you think wills, life insurance, and all that boring stuff are just for moms and dads to plan for their children’s futures?  Think again!  If you are a newlywed, it is time to start thinking about how your estate plan will impact your spouse’s future. 

Are your parents currently listed as the beneficiaries on your 401(k) or life insurance policy?  Do you own your own home?  Who will make financial and health care decisions for you if you are in a car accident?  If you have been recently married, now is good time to think about the possibility of changing the answers to these questions

A recent post from Financial Planning provides an excellent planning checklist for newlywed couples:

1. Update life insurance and retirement account beneficiaries.
2. Consider purchasing additional life insurance while rates are low.
3. Designate beneficiaries of your estate by executing a will, even if you signed a prenup.
4. Establish powers of attorney for finances and health care and a living will.
5. Discuss home ownership options.

Planning for your future and the future of your spouse can be stressful, but it is a vital part of the transition to marriage.  Consider planning just another expression of your love for your new spouse.

Who will make medical and financial decisions on my behalf when I am incapable of doing so? 

Who will receive my personal items when I pass away?  My car?  My house?

More importantly, who will get my money? 

Who will take care of my children? 

Who will manage the assets I leave behind for my children if they are young when I pass away? 

Will my loved ones be faced with a massive estate tax bill? 

These are all important questions to consider when you are thinking about your estate plan.  Often times, individuals are very concerned about the impact that estate or inheritance taxes will have on the assets they leave behind.  Luckily, for those of us in Indiana and Ohio, both states have done away with estate and inheritance taxes.  However, it is still important to understand the federal estate tax and how it could impact your estate. 

At this time, the federal estate tax exemption is quite high.  For the year 2015, every taxpayer has a lifetime exemption of $5,430,000, while married couples have a $10,860,000 lifetime exemption (amounts are adjusted each year for inflation).  This means that, by and large, the federal estate tax will impact only those individuals who die leaving behind large estates.  Here is an interesting summary of the recent history of U.S. federal estate tax exemptions and rates.

While the thought of tax planning can be scary, it is helpful to note that under current law, most individuals will not leave behind a hefty estate tax burden.  Don't let concerns and confusion about how estate taxes will apply to you deter you from moving forward with your estate plan!

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.