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Category Archives: Trust

If you leave someone $1.00 in your will, can they contest it?

Written on May 10, 2012 by Thom Cooper in Estate Planning, Trust

By Bethany Smith

If someone is left a dollar in a will then they can’t contest the will, right? At Cooper, Adel & Associates we are continually asked this question. It is not necessary to leave someone anything with the hope that they will not be able to contest it after your passing. Leaving a dollar to someone does not disinherit him or her. If the will is your only planning tool, it’s important to understand that your heirs must go through the probate court to get what you want to leave them … and anyone can contest the will, even if you gave them $1.00.

If you have a complicated family situation – children that are fighting, in-laws that don’t appreciate you, a child you have not seen for 10 years – you should consider seeking professional advice from an elder law attorney. There are other planning techniques that can help you accomplish your goals when you’re gone.

Please contact our office at 800.798.5297 to schedule a free consultation. We won’t even charge a dollar to learn about how to protect your dollar.

Who will take care of your pets when you’re gone?

Written on May 8, 2012 by Thom Cooper in Planning, Trust

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By Carmen Potterton

My husband and I decided that any children we may have would have four legs and fur. You would think it would be easier but not so much.

We have several cats, their issues vary; a cracked jaw, a tail that wouldn't stand up (it eventually stood back up), puncture wounds, dairy queen cup stuck on a head, pneumonia, and the two who have feline leukemia, which means they can't mingle with the others, so for them we added a room onto the house, which is actually kind of nice, I now have my own office.

Our dog is a mutt, someone once told me they tend to have fewer health issues, I think they were wrong, so far we have found out he has acid reflux (seriously), a sensitive digestive track which requires a special (which means expensive) diet, and seasonal allergies.

We love our four legged kids but worry about who will care for them when we no longer can, so the solution, a Pet Trust! If you have four legged kids, be sure they are cared for when your gone, contact Cooper, Adel & Associates, A Legal Professional Association, to make sure they get the care you want for them.

Another Choice for Medicaid Spend Down Protection: Principal Protection Trusts

Written on March 19, 2012 by Thom Cooper in Trust

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By Attorney Daniel Vu

It is my firm belief that not every client requires the same solution. Too often attorneys and financial planners propose the same plan for every client regardless of a client's real concerns and economic reality. It is important for us as elder law planners to provide options tailored to an individual's situation.

The Principal Protection Trust is an example of one of the options that we can provide for clients. It can be the better solution to protect certain family assets from a Medicaid spend down. In a Principal Protection Trust the principal but not the interest is protected. That means the client may have complete and direct access to the income generated from the assets in the trust but the actual asset itself will not be subject to a Medicaid spend down. This type of trust is supported by federal statute and by most states. Ohio is one of the states that have allowed this type of trust and our own law firm, Cooper, Adel & Associates, successfully argued an Administrative Appeal on a similar trust.

Of course, with all this said, the Principal Protection Trust is only one option in the toolbox. It too is not a one size fits all solution. If you desire protection from the catastrophic costs of long-term care, see a qualified elder law attorney who will tailor a solution to your specific situation.

Beware the Empty Trust- A New Year’s Resolution

Written on January 14, 2012 by Thom Cooper in Trust

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By Attorney Ted Brown

One of the most common situations I encounter in Estate Administration is an empty trust. An empty trust is a trust that never ends up actually holding any property or assets. Attorneys that do not specialize in Elder Law often provide clients with a trust printed on very nice paper and put into a fancy binder but leave the task of transferring assets to that trust squarely upon the client. As a result, the trust is never used to its full potential. When the client passes away, assets end up in probate, adding delay and expense to an already difficult time for their families. Similarly, estate tax savings provisions in the trust go unused, leaving the family to pay death tax they otherwise may have avoided.

If you have a trust, your assets should be clearly titled in the name of that trust. You should also be familiar with the goals and purposes of the trust and what you need to do to take full advantage of its provisions. If you think you may be suffering from an empty trust or do not fully understand how your trust works, the New Year is a prime opportunity to meet with an Elder Law Attorney at Cooper, Adel & Associates. 2012 should be the year that you can finally get your ducks in a row!

Top 5 Reasons Why Having Just a Will in Ohio is Simply Not Enough

Written on November 4, 2011 by Thom Cooper in Estate Planning, Planning, Trust

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By Attorney Dan Vu

A Will does not avoid the unnecessary cost and hassle of probate.
Although commonly misunderstood, the basic fact is that a Will is not in effect until the Probate Court admits it. It does not allow your estate to avoid Probate Court. Instead, wills are instructions to a Probate Court.
A Will does not protect the inheritance you leave to your beneficiaries from a future creditor or divorce.
Yes, believe it or not, many states, including Ohio, allow the creation of Trusts that can protect the inheritance you leave behind.
A Will does not protect your assets from the catastrophic cost of long term care.
A nursing home stay can wipe out the inheritance you meant to leave to your beneficiaries. Yes, you can also protect assets from this cost using specially created Trusts.
A Will does not allow for someone to act on your behalf while you are alive but need help.
A Will appoints Executors who can administer your estate at death, but what if you need someone to act on your behalf while you are living but lack the mental or physical capacity to manage your affairs? A properly drafted Trust and Power of Attorney can avoid the cost, hassle, and restrictions of a court appointed guardian.
A Will does not take advantage of potential estate tax savings.
The Federal and Ohio Estate Tax (or Death Tax) laws are always changing. Of course the estate tax law today does not matter, it is the estate tax law at the date of your death that really matters. The history on this subject has shown us that Trusts can be constructed to deal with the changes in law and can take advantage of serious estate tax savings that would not otherwise be available.

What is a ‘Pour-Over Will?’

Written on August 8, 2011 by Thom Cooper in Trust

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By Barbara Penwell

A Pour-Over Will is a particular type of Will used in conjunction with a Trust when a person dies with an asset that has no beneficiary. This kind of Will “pours” this property into the Trust that the person set up during his or her life so that their wishes, as expressed in the Trust, are followed.

Why isn’t everything owned by their Trust? The most frequent reason is that people forget to set up ownership for newly-acquired property, like a new car or a bank account, as their Trust.

If you die without a Will and have property with no beneficiary designated, then your property may not be distributed according to your instructions in your Trust. Rather, any potential heirs must go to Probate Court where the judgement is made about who the rightful heirs are. The property will most likely be distributed according to the rules of “intestate succession” (property inheritance when there is no Will).

To avoid the delay and expense of an intestate estate, a Pour-Over Will is created with most Trusts. It covers any property that was intentionally or inadvertently left out of the Trust during the deceased’s life. By the terms of the Pour-Over Will, all the property the deceased owned at death is “caught” and is “Poured-over” into the existing Trust. Though the property caught by a Pour-Over Will has to go through probate, it will eventually be distributed according to the instructions of the deceased rather than the State Law rules of intestate succession.

If you have a Trust, make sure you also have a Pour-Over Will as a safety net just in case you pass away with property that has no beneficiary.

For additional information regading Trusts,Pour-Over Wills,or to arrange a free consultation, please contact our office at 1-800-798-5297.

When to use a Memorandum of Trust

Written on July 16, 2011 by Thom Cooper in Trust

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By Attorney Dan Vu

If you have a trust in Ohio, your trust, unlike a will, is a private document that is normally never made public. During your life and at your death, no third party needs to know who gets what and how much unless you want them to know.

However, as you may already know, your bank, financial institutions, a government agency, or a title company may request a copy of the trust. Out of frustration, you may have complied and given them a full copy of your trust. Instead of providing a full copy of the trust, Ohio law allows you to provide a Memorandum of Trust (also called Certificate of Trust or Abstract of Trust). This is a statement, signed by the trustee, which provides the requester only the bare essential information of the trust needed to complete your transaction.

In 2007, when Ohio adopted provisions of the Uniform Trust Code, third parties accepting a Memorandum of Trust are sheltered from liability. This allows, for example, a bank to happily accept a Memorandum in lieu of having their legal department review your entire trust. A win, win for both parties. If you require a Memorandum of Trust, have your attorney prepare one for you. For the requirements of a Memorandum of Trust, see ORC § 5810.13.

What Does it Mean to Fund a Revocable Living Trust?

Written on June 23, 2011 by Thom Cooper in Trust

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By Barb Penwell

In order for a trust to function properly, assets must be “funded” into the trust.

Funding is the process by which assets that were previously titled in the name of the individual or in joint names with others and re-titled so that the Trust is the owner. In the case of insurance or annuities, it is customary to identify the Trust as either a primary or secondary beneficiary.

The ultimate goal of funding a Trust is to ensure that the Settlors’ property is governed by the terms of the Trust agreement. These funded assets are managed by the Trustee of the Trust. Thus, when the last Settlor dies, the Trustee can proceed with settling the trust without going through probate.

Why Should You Fund Your Trust?

Assets held outside the Trust cannot be managed by the Trustee – The Trustee of the Trust has no power over the Settlors’ property that hasn’t been re-titled into the name of the Trust. Thus, if the Settlor becomes mentally incapacitated, the Settlors’ loved ones will need to establish a court-supervised guardianship or conservatorship to manage the Settlors’ assets that are not held in the name of the Trust.
Assets held outside the Trust may require probate after the Settlors’ death if there is no beneficiary designation on that asset as in the case of a payable-on-death designation where the beneficiary predeceases the Settlors. Trusts typically name a series of back-up beneficiaries so that this does not happen. Further, this defeats the purpose of creating a Trust. Probate is a costly, a lengthy process, easily challenged and is a public record.
Assets held outside the Trust may not go to the Settlors’ intended beneficiaries. For instance, with jointly-owned assets, these assets will pass to the joint owner (usually one of the child helping mom or dad) and not to all of children, as is often intended.

Please contact our office at 800-798-5297 to arrange a free consultation to discuss your plan to distribute your assets.

SHELLEY’S LIFESTYLES OF THE (NOT SO) RICH AND FAMOUS

Written on May 17, 2011 by Thom Cooper in Case Study, Estate Planning, Trust

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By: Shelley Rose

OK, let’s all admit that we know a few mean people that surround us, right? Well, if you are rich and famous and you knew Leona Helmsley, you may have considered her mean. She was referred to as “the Queen of Mean” from all of those who knew and “loved” her. If you are unfamiliar with Leona, she and her husband, Harry, were well known as real estate developers and hoteliers. Leona was known for being mean to staff. It seems like everyone she ran into and also in the later years of her life was convicted of tax evasion and spent years in prison.

But with everything that she did to her friends and staff, no one would have expected what she did in her final days while writing her Trust and Will. Everyone talked after Leona passed away on August 20, 2007 at age 87 when contents of her Trust and Will were revealed.

Bottom line is that Leona’s dog, Trouble, will continue to live an opulent life because Helmsley left her beloved white Maltese $12 million. She also left millions to her brother, Alvin Rosenthal, who was named to care for Trouble in her absence, as well as two of four grandchildren from her late son, Jay Panzirer, so long as they visit their father’s grave site once each calendar year. Otherwise, she wrote, neither will get a penny of the $5 million she left for them. Helmsley left nothing to two of Jay’s other children “for reasons that are known to them,” she wrote.

But no on made out better than Trouble, who once appeared in ads for the Helmsley Hotels, and lived up to her name by biting a housekeeper.

So, I think this is a prime example that while you are living, YOU are in charge of who or what gets a portion of your Estate. That may not be so true after you are gone. So please make sure you are taking care of your affairs and you make the decisions of where your estate goes after you are gone.

Call for a free consultation with Attorney Cooper at 1-800-798-5297 to make sure your estate isn’t “left to the dogs”.

Until next time, keep your feet on the ground and keep reaching for the stars!

Leave Your Children a Creditor and Divorce Proof Inheritance

Written on May 14, 2011 by Thom Cooper in Estate Planning, Trust

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By Attorney Dan Vu

I often tell my clients “It is not the size of the inheritance that counts but rather, it’s the type of inheritance that truly matters.” If the inheritance you leave to your child is the unprotected type, your child’s future potential liabilities could make the size of the inheritance meaningless.

In one fell swoop a creditor could lay claim to the entire inheritance, no matter the size. These days a divorce could end with a similar result. Therefore, the single most valuable gift a parent can give to their children is to ensure that the inheritance left to them is the protected type. That is, protection from the endless possible events that may occur to them during their lifetime whether it be a car accident, business failure, or divorce. Ohio law allows the creation of specific types of trusts that can do just that. These trusts, sometimes called spendthrift trusts or legacy trusts, if created and utilized correctly, can be a powerful vehicle to shelter your children’s inheritance from their liabilities while still allowing them access to the inheritance for your intended purpose: to support them and only them. These special trusts can also be used for the benefit of your grandchildren, nieces, nephews, or even your spouse.

Whoever it may be, if you expect to leave an inheritance, consider doing your beneficiaries a big favor now and take that extra step to leave a protected inheritance. Call our office to discuss how this might fit into your estate planning.