Why do I need an Estate Plan?

Estate Planning protects your family by:
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- Ensuring your assets go to the right people (at the right age);
- Limiting the cost and delay of administration by avoiding probate;
- Appointing a Guardian to care for minor children;
- Minimizing Estate Taxes, Income Taxes, and Creditor Claims;
- Reduce the amount of time required for Administration;
- Appointing an agent to act if you are unable to do so;
- Protecting your assets from a Medicaid spend-down; and
- Making your medical treatment preferences known;

Probate and Estate Administration

Part of the planning process is to limit the costs and time required to administer the Estate. If Probate is necessary, we also provide representation and assistance to your family.

This representation includes guidance if there is no Will, also known as intestate succession. We advise the fiduciary of the Estate to follow the necessary procedures and protect the fiduciary from potential liability.

The cost for Administrative services is always on a fixed fee basis. Since each Estate is unique, the cost is dependent on the complexity of the assets and the work required.

You can set up a free in person or phone consultation to discuss your questions.

How does the process work with your firm?

The first step to creating plan is to set up an initial consultation. At the first meeting we will discuss your options, how to achieve your goals, and any questions you have about the services. 

At the initial meeting we will also discuss the costs. All Estate Planning services are on a Fixed Fee basis so you do not have to worry about hourly rates.

You can set up a free in person or phone consultation to discuss your questions.

Succession Planning: What would happen if you did not show up for work tomorrow?
For many small businesses, one person has the majority of authority. This person is typically the business owner.

If the business owner suddenly becomes disabled or is deceased, there can be significant damage to the value of the business.

If only one person is in charge of a majority of vital tasks such as processing payroll, paying operating expenses, submitting quarterly taxes, signing checks or accessing bank accounts there is a risk that the business will not survive his or her loss. To avoid this risk, a Succession Plan must be put in place.

What is a Succession Plan?  
A Succession Plan establishes how a business will operate if one or more of the owners is deceased or disabled. It confers legal authority for a person or group of individuals to exercise authority and preserve the company.

Who should be listed in a Succession Plan?  
If a business owner is unable to manage the company, someone must take over his or her duties. This does not need to be the same person for every role. But there should be a comprehensive review of exactly what the business owner does for the company and clear instructions as to which employee will take over the given role.

If a business requires state licensing, such as a physician, chiropractor, lawyer, or accountant, there should be an agreement in place with a licensed party to act as a temporary manager. This can be a mutual agreement wherein, both owners would serve in the succession role for one another. 

Is a Buy - Sell Agreement necessary?
Unless you have children who are willing to take over the business, a Buy - Sell Agreement should be considered. This type of Agreement establishes a clear calculation of the purchase price a third party would pay for your business upon death.

In most cases, a Buy-Sell Agreement includes an insurance policy on all owners. The purpose of an insurance policy is to avoid a large payout to the estate of a deceased owner. Instead, the insurance policy is used to buy the deceased owner’s shares upon his or her death.  

How does an Estate Plan relate to Succession Planning?
It is best to have a Power of Attorney and Trust in place should the business owner become disabled or deceased. These documents will avoid significant delay in authority to transact business. Without a Power of Attorney or Trust, a business cannot operate until the Probate Court grants authority.

​A business closing for days or weeks can result in clients, customers, and employees permanently going elsewhere. Here are some essential steps to putting a Succession Plan in place:

·         Create Membership Certificates/Shares with Transfer on Death Designations;

·         Review your current Estate Plan to ensure you have a Power of Attorney and Trust;

·         Establish terms that account for the death of a member and avoid ownership by a spouse or third party.

·         Create a buy - sell agreement to ensure the value of the company is not lost at death. 

·         Purchase life insurance to avoid pulling money out of the company to buy a deceased member’s share.

To ensure all of the proper procedures are followed, the best investment is in a qualified counsel.

When does the Ohio Estate Tax repeal take effect?

Estate Taxes reduce the amount of inheritance that is transferred from one generation to the next. If there are Estate Taxes due, assets within the Estate may need to be sold in order to satisfy the tax. In Ohio, the current Estate Tax Laws are as follows:

Federal Estate Tax
The federal credit is, as of 2021, $11.7 million (and will increase with inflation) for each individual. 

​There is also a concept known as Portability. This allows a spouse to transfer all assets to the surviving spouse, pay no tax at the first spouse's death (there is an unlimited marital deduction which results in no Federal Estate Tax for assets given to a surviving spouse), and transfer the credit to the surviving spouse. Thus, for a married couple, the Federal Estate Tax credit amounts to $23.4 million; whereas before the credit would be lost is not used at the first spouse's death.

One requirement for transferring the credit to a surviving spouse is that a Federal Estate Tax Return must be filed after the first spouse's death. Further, there are restrictions on the transfer of this credit in subsequent marriages.

Ohio Estate Tax
On July 2, 2011, Governor John Kasich repealed the Ohio Estate Tax. The repeal is part of his 2012-2013 budget and will take effect on January 1, 2013. Click here for a link to a visual representation of how this repeal of the Ohio Estate Tax will go into effect between 2011 and 2013.

For those who die in 2011 and 2012, there will still be an Ohio Estate Tax. The current Estate Tax in Ohio is 6% on assets above the $338,333.33 exemption, up to $500,000, and a 7% tax on assets above $500,000.00.