Why Estate Planning is Important

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Why Estate Planning is Important

Will and estate planning is a topic that you may not like to think about but is important for you and your loved ones. No one likes to dwell on the thought of not being around to care for and protect their family. However, you should begin the process now to ensure your family’s well-being. Estate planning is the legal process of designating who will receive your assets and manage your responsibilities after your death or incapacitation. The goal is to make sure beneficiaries receive assets in a way that minimizes estate tax, gift tax, income tax and other taxes; that is why working with certified estate planners is so important. The Northeast Ohio estate planning process should start by consulting with an attorney that is well-versed in the process. Our knowledgeable estate planning attorneys can help develop a strategy that best suits you and your family’s specific needs.

How to Begin the Ohio Estate Planning Process

You may think you don’t have enough assets to justify estate planning, but once you start looking around, you might be surprised by all the tangible and intangible assets you have.

Tangible assets in an estate can include:

  • Houses, land, or other real estate
  • Vehicles including cars, motorcycles, or boats
  • Collectibles such as coins, art, antiques, or trading cards
  • Other personal possessions such as athletic season tickets, club memberships, etc.

The intangible assets in an estate may include:

  • Checking and savings accounts and certificates of deposit
  • Stocks, bonds, and mutual funds
  • Life insurance policies
  • Retirement plans such as workplace 401(k) plans and individual retirement accounts
  • Health savings accounts
  • Ownership in a business

After you take stock of your tangible and intangible assets, you need to estimate their value. In some cases, you may need to secure outside valuations, such as home appraisals and/or financial statements. The Ohio estate planning process is not as cut and dry as many believe it to be. As you move through life’s different stages, you can adjust the plan to reflect those changes (i.e., marriage, divorce, children, etc.).

Know What You Need When Estate Planning in Ohio

Once you have taken an inventory of your assets, it’s time to determine how to protect them and your family after you’re gone. Our experienced estate planners recommend considering the following items:

  • Do you have enough life insurance? That depends on if you’re married and whether your current lifestyle requires dual incomes. Life insurance may be even more important if you have a child with special needs or college tuition bills.
  • Determine a guardian (and a backup) for your children when you write your will. This can help sidestep costly family court fights that could drain your estate’s assets.
  • Document your childcare wishes — Don’t assume that certain family members will be there or that they share your child-rearing ideas and goals. And don’t assume a judge will abide by your wishes if the issue goes to court.

Hire Estate Planners to Avoid Common Mistakes

The Ohio estate planning process will likely be successful when you recognize and avoid the most common mistakes. Most estate planners will tell you that the same estate planning mistakes can happen whether an estate is worth a billion dollars, a few hundred thousand dollars, or something in between. The most common Ohio estate planning mistakes include:

  • Not having a plan or having an outdated plan.
  • Failing to review the plan every few years and revising as needed.
  • Not having the essential documents including a will, living trust, power of attorney, advance medical directive, and other key features.

Contact our Cleveland Ohio Estate Planners to Learn More

Manning & Clair Attorneys At Law have extensive experience in providing expert estate planning guidance in Northeast Ohio. We have the experience and knowledge to help you choose the correct estate planning technique for your unique situation. Contact us now to schedule a meeting to discuss your needs. Our friendly estate planners will be happy to help you.