PYRAMID
APPROACH TO
ESTATE PLANNING
I. Ohio Estate Planning
A. Last Will and Testament
1. Choice of Executor
2. Choice of Guardian for children
3. Authority of Executor
4. Distribution of assets
B. Nonprobate Property
1. Payable on death designations
2. Transfer on death designations
3. Joint ownership, with a right of survivorship
C. Living Trusts
1. Revocable vs. Irrevocable
a. Trustor
b. Trustee
c. Beneficiary
2. Inter vivos (living) vs. Testamentary
3. Grantor vs. Non-grantor (for IRS purposes)
4. Purpose of Trust:
a. Control of assets after death because beneficiary is to young, to immature, or disabled.
b. Privacy
c. Avoid Probate/Simplify Administration
d. Long term care planning/Medicaid or Veterans benefits eligibility
e. Income Tax or Estate Tax planning
D. Estate Tax Avoidance Trusts
1. A/B (credit shelter) trusts for married couples
2. Irrevocable insurance trusts
3. Charitable Remainder/Lead Trusts
4. Defective Grantor Trusts
5. Generation Skipping Trusts
E. Gifts
1. $18,000 per year annual exclusion (for 2019)
2. $13,610,000 (for year 2024) lifetime exclusion
3. No Ohio or Florida gift tax
F. Durable Powers of Attorney
1. Financial
a. Durable vs. Non-durable
b. Springing vs. Effective immediately
2. Health Care
a. Choice of guardian for self, and for dependent or minor children.
b. Living Will (end of life) decisions or advocacy.
c. HIPAA issues.
d. Role of agent as an advocate vs. decision maker.
G. Living Will
1. Life support considerations during end of life conditions:
a. Terminal Condition
b. Permanently Unconscious (vs. Persistent Vegetative State)
2. Use of feeding tubes and hydration tubes
3. Do Not Resuscitate Orders
4. Organ donation considerations