Top 10 Reasons to Make a Will

TOP TEN REASONS TO MAKE A WILL

1.     Determine where your property goes after you die

If you die without a Last Will and Testament, your property will be divided according to the Ohio Law of Descent and Distribution. You may find this surprising, but that law has no regard for your wishes involving your property after you pass away. Without a Last Will and Testament, instead of deciding who will receive your property, the legal system will distribute your assets after a lengthy and expensive probate process. For example, if you have no living relatives, your property goes to the State of Ohio. I somehow doubt that was your intention. Allowing your estate to pass to others without a will or trust can often be more expensive and time consuming and require court intervention than if you had taken the time to have a will properly created.

2.     Determine how your estate will be managed

If you die without a Last Will and Testament in Ohio, you will not be able to determine who will manage your affairs after you pass away. Rather, your remaining family members will have to hire an attorney to request that the Probate Court appoint an administrator for your estate. A costly administration bond will probably have to be posted with the Court as security and detailed accounts will have to be prepared. The result is several thousand dollars of additional expenses that could have been avoided by having a Last Will and Testament prepared.

3.     Designate Guardians and Establish Trusts for Minor Children

Should you and your spouse die prematurely, identifying a guardian for your minor children will ensure that they are cared for by the person you choose, rather than the person appointed by the Court. A Trust will ensure that the property left to your children is managed for their benefit without costly, court-administered guardianships. Additionally, a Trust can be prepared to stage the distribution of your property to match the age and degree of maturity of your children.

4.     Minimize the Costs of Probate

The cost of Probate may differ from jurisdiction to jurisdiction in Ohio. A ballpark range is 2% to 7% of the value of your estate (e.g., if you have a $300,000 estate, the probate expenses may be anywhere from $6,000 to $21,000, depending on where you are and how complex your estate is). A Last Will and Testament provides you the opportunity to take advantage of Ohio laws that allow you to avoid Probate and authorize the Executor of your estate to act without costly and time-consuming Court supervision.

5.     Minimize Estate Taxes

In Ohio, the current Estate Tax for estates over $338,333 but less than $500,000 is $13,900 plus 6% of the excess over $338,333. For estates over $500,000, the Ohio Estate Tax is $23,600 plus 7% of the excess. In addition to the Ohio Estate Tax is the current Federal Estate Tax Rate of 35%. These taxes can result in a significant decrease in the assets of your estate. However, with proper planning and a comprehensive estate plan, your tax liability may be reduced.

6.     Issues Involving Previous Marriages or Relationships and Divorce

Gifts passing to a spouse in an Ohio Last Will and Testament are automatically revoked upon divorce. This will result in any such gift passing to the “residuary” portion of your Last Will and Testament. Accordingly, the gifts will likely not pass according to your wishes. Therefore it is important to have your will updated in case of divorce. Also, without a Last Will and Testament, Ohio’s Statute of Descent and Distribution will require that certain shares of your estate pass to any of your children from a prior relationship. Usually these shares are different than the shares that will pass to your spouse and any children from a current relationship.  Finally, it is important to note that Ohio does not recognize common law marriages entered into after October 1991.

7.     Provide for Requirements of a Special-Needs Beneficiary

Dependents with mental or physical disabilities may have increased expenses for housing, personal assistance or other unusual expenses. A Last Will and Testament can be utilized to set aside funds and direct the administration of those funds to ensure a special-needs beneficiary is provided for. Usually, this is done by establishing a trust that permits money and assets to be distributed in a manner to maximize any disability support that may be available through the government.

8.     Disinherit a Child

This is usually not a popular decision, but if it needs to be accomplished, a Last Will and Testament provides you the opportunity to do so. The more likely situation is the desire to distribute your property unequally among your children because one them may have already received substantial gifts from you or perhaps another has special needs.

9.     Protect a Family Business

A comprehensive Estate Plan may be utilized to streamline the transfer of a business that you have spent your life building to the next generation in a manner that minimizes tax consequences and potential for conflict among family members.

10.  Avoid Do-It-Yourself Estate-Planning Services

Perhaps you are considering a DIY Estate Plan because it appears cheaper than hiring an attorney. Essentially, there is one potential situation in which DIY Estate-Planning products may be sufficient – you are (1) single, (2) childless, and (3) broke. If you do not meet all three requirements, DIY Estate-Planning poses a danger to you because the individuals working for  DIY Estate-Planning companies are not acting as your attorney; their legal documents are not a substitute for factual advice from an attorney; the information you submit is not reviewed for legal adequacy; and their information and forms are not guaranteed to be up-to-date, complete or accurate. In fact, most DIY Estate-Planning companies explicitly claim not to provide legal advice (this should be your first red flag). Providing for your family and loved ones after you pass away is too important to be cobbled together with legal duct tape and generic forms. Contact an Ohio Estate-Planning Attorney at Hallowes and Ebbeskotte, LLC to ensure your wishes are carried out. Additional Estate-Planning Information is available at  http://thehelawfirm.com/areas-of-practice/probate-wills-and-trusts/probate-administration-wills-and-trusts/.

“The bitterness of poor quality remains long after the sweetness of low price is forgotten.”

- Benjamin Franklin.