Rise & Shine Summer 2018 | Seite 5

PROTECTING YOUR WEALTH

Hopefully you’ ve put together an estate plan that details how your wealth should be distributed upon your death. If not, don’ t wait any longer. Make sure that the important financial decisions you make in the years to come align with your wishes.

Carefully monitor the following areas to ensure that everything goes according to plan.

REVIEW CURRENT WILLS AND LIVING TRUSTS

Make sure your will is current and if you don’ t have a living trust, consider establishing one. Assets placed in a living trust do not escape estate or income taxes, yet there are many benefits to be had. A living trust:

• Avoids probate, which is a costly process.

• Protects your privacy as it is a private document and not of public record. A will is a public record and everything in it becomes public as well.

• Provides for management of your affairs if you become incapacitated or ill, without court intervention.

• Allows for the distribution of your assets according to specific terms you designate.

Living trusts work well when they are designed and managed properly. Only you and your trusted advisors – which should include a CPA, a financial manager and an estate planning attorney – can help you determine if one is right for you.

by: Inez Bowie, CPA, CSEP

132 S. Fourth St. Marietta, OH 45750 740.376.9021 inez. bowie @ reacpa. com

TITLE YOUR ASSETS CORRECTLY

If you use a living trust, make sure your assets are titled in the name of the trust – that’ s the only way for it to work properly. And realize that“ pay on death” bank,“ transfer on death” brokerage and“ joint” accounts can wreak havoc on your estate plan if you intended for those assets to be transferred according to your trust terms.

TITLE REAL ESTATE CORRECTLY

Real estate, like your home, can be set up to“ transfer on death” and avoid probate. Another option is to put it in your living trust so it can be administered according to the trust’ s terms. Whichever option you chose, be sure to title the asset correctly.

REVIEW YOUR BENEFICIARY DESIGNATIONS

Your will or your living trust does not determine how all your assets are distributed. For example, retirement plans and life insurance policies let you name the beneficiaries for those particular assets. If you fail to designate a beneficiary, your account will go through the probate process.

It is important to not only designate your beneficiaries, but to also review your beneficiary information after major life changes. For example, let’ s assume you have designated your spouse as your plan beneficiary. The two of you divorce and you never change your beneficiary designation. When you die, your ex-spouse will receive the money. If that’ s not what you intended, make sure each and every account is upto-date.

KNOW IF YOUR ESTATE WILL BE TAXED

The recent federal tax overhaul doubled the amount of wealth you can pass to your heirs, your estate or gift tax-free. Now, $ 11.18 million per person($ 22.36 million per married couple, with use of portability) can pass to your heirs free of federal gift or estate tax. In addition, Ohio does not have any estate tax.

However, there are some states that continue to impose an estate or inheritance tax. Be sure you are aware of estate tax consequences not only from a federal perspective but also from a state and local perspective.

Keep in mind, the increased federal exemption amount reverts back to $ 5 million indexed for inflation($ 10 million per married couple) at the end of 2025, unless Congress makes additional changes. This is yet another reason you cannot do a one-time estate plan and never look back.

Nothing is more frustrating than going through the process of setting up an estate plan, only to have it not work properly because of a simple oversight. Work with your trusted advisors to develop the best estate plan for you and your loved ones and remember to review your documents every couple of years to be sure the plan still meets your needs, especially in light of the ever-changing tax laws.

I’ m always happy to share more information with regard to estate planning. Give me a call to talk about your options.

Rise & Shine • Summer 2018 5