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Estate Planning Essentials

Estate Planning Essentials. Thomas E. Baxter & Associates Co., LPA (614) 431-8110. Last Will and Testament. Always recommended Streamlines probate Eliminates expense of fiduciary bond Establishes disposition of probate assets according to client desire. Durable General Power of Attorney.

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Estate Planning Essentials

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  1. Estate Planning Essentials Thomas E. Baxter & Associates Co., LPA (614) 431-8110

  2. Last Will and Testament • Always recommended • Streamlines probate • Eliminates expense of fiduciary bond • Establishes disposition of probate assets according to client desire

  3. Durable General Power of Attorney • Delegates power to make financial decisions to an Agent • Typically used when client is debilitated or physically unavailable

  4. Health Care Power of Attorney Delegates power to make medical decisions Power to discontinue artificially supplied food and water Living Will Clarifies your wish that life-sustaining treatment (nutrition and hydration) be withheld or withdrawn if you are incapacitated and terminally ill Medical Directives

  5. Pension-Type Vehicles Life Insurance JTWROS POD &TOD Revocable Living Trust Non-Probate Transfers

  6. Pension-Type Vehicles • IRA, 401K, etc. • Pass by beneficiary designations • Very important to review income tax payment considerations with financial advisor

  7. Life Insurance • Passes to a named beneficiary • Great for use in second marriage situations as separate proceeds can be transferred to children from prior marriage easing postmortem family tensions • Be sure to consider backup beneficiary after spouse deceased

  8. JTWROS (Joint Tenants With Rights of Survivorship) • Excellent way to avoid probate for transfers between spouses • Much more risky and not advisable for transfers between parents and children due to exposure to creditors

  9. POD and TOD(Payable on Death & Transfer on Death) • May be used for: • Securities • Bank Accounts • Real estate, under Ohio law • If carefully structured, this can be an effective non-probate distribution method between parents and children

  10. Revocable Living Trust • Federal & Ohio Estate Tax Savings • Non-Tax Related Benefits

  11. Use of “A/B” Trusts Creation of Credit Shelter Trust “Trust B” following death of the first spouse can double the estate tax exemption Federal exemption presently $2.0 M and Ohio is $338,333 plus marital deductions Children will benefit Ohio Example... Federal & Ohio Estate Tax Savings

  12. Non-Tax Related Benefits • Retaining share for orphaned children until later ages • Placing assets in trust will avoid the delays, expenses and publicity of probate

  13. Thank YouThomas E. Baxter & Associates Co., LPA(614) 431-8110

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