Automobile - Since March 11, 1996, a surviving spouse can transfer up to two automobiles of a decedent by affidavit with the Bureau of Motor Vehicles. Since 7/23/02 you can have a TOD car title (also for watercraft and motors).
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ank accounts - Methods of ownership include only one name, joint and survivorship, payable on death (POD). May include a power of attorney card or "who may draw" authority. Joint and survivorship and payable on death accounts do not go through Probate, although they are subject to the estate tax (surviving spouse’s have unlimited marital deduction).C
ompetency - You must be able to understand what you are doing in order to make a Will or a Power of Attorney. Once you become incompetent you can no longer make a Will or Power of Attorney.D
urable general power of attorney - Consider granting your spouse or another trusted person with a durable general power of attorney. It is a sharing of your authority to do anything that you could do for yourself. However, the power can be abused so that you must approach this document carefully.E
state tax - No estate taxes for assets passing to a surviving spouse. Ohio has a $338,333 exemption for all estates effective 1/1/02. Federal government has a unified gift/estate tax credit that equals 2001 - $675,000 (2002-3 - $1M; 2004-5 - $1.5M; 2006-8 - $2M; 2009 - $3.5M; 2010 - repeal/no tax; 2011 - $1M).F
iduciaries - Term applied to Executors, Administrators, or anyone with a special close relationship and duty of utmost loyalty to another, example the agent holding a power of attorney for the principal.G
ifting - You can give up to $11,000 per year per donee (recipient) without having to file Form 709 Federal Gift Tax Return. However, you can actually give up to $1 million (2002) total during your lifetime or at death and not pay any federal gift or estate tax. The $1 million is the amount of the federal unified gift/estate tax credit value and increases as set forth above.H
ealth care - You should consider having a durable power of attorney for health care and living will, so that in the event you can no longer make medical decisions for yourself your agent can work with the doctors.I
ntestate succession - When you die without a Will, the Statute of Descent and Distribution determines who inherits your estate. The Administrator appointed to manage your estate must post a bond with the Probate Court.J
oint and survivorship - Generally recommended for small estates between spouses in order to avoid probate. Generally do not recommend for parent and child or other adults who are not spouses. Generally do not recommend for large estates because of the potential loss of the unified credit shelter.K
inematics - The branch of mechanics that deals with motion in the abstract, without reference to force or mass. Nothing to do with estate planning, but we needed something for K and until a better word is suggested, we’ll keep kinematics.L
ife estate - A term of ownership that terminates on your death. A life estate deed retains for you while your alive the right to live in the home and on your death it passes to the remaindermen without going through Probate. Method of avoiding Probate and possible Medicaid planning advantages.M
edicaid planning - A complex area to plan to save your accumulated earnings so that your heirs have something after you die, without spending everything on nursing home care. Requires detailed examination of your assets, by type, amount and how they are titled. Extreme caution because of current laws which make illegal the transfer of assets to qualify for medicaid during a disqualification period (36 months or 60 months depending on the transfer).N
ursing home costs - The Ohio Department of Job and Family Services establishes the average monthly private pay rate (i.e., the denominator in the equation determining the length of penalty periods caused by gifts) which is $3,903 effective August 1, 2001 (previously $3,441 from 6/1/1999).O
ut-of-state real property - Consider ownership methods that will allow an easy transfer in the event of death without requiring an ancillary administration of an estate. Some forms of ownership could be life estate deeds, joint and survivorship, living trusts.P
hillips, Mille & Costabile Co., L.P.A. - The attorneys we hope you call (440-243-2800) to provide you with services for all your legal needs (probate, estate and medicaid planning, personal injury, medical negligence, domestic relations, corporate and business matters, trusts, and partnerships). We want to be the law firm for your family.Q
uit Claim Deed - CAUTION, once you give away your property with a Quit Claim Deed it is gone. The Quit Claim Deed transfers whatever rights you have in the property to someone else. Never accept a Quit Claim Deed if you are buying property because it does not carry any warranties of title to protect you from the claims of others.R
etirement - Enjoy what you have while you have your health. Good estate planning should include your plans to consume and spend what you have worked for all your life.S
afe deposit box - You probably don’t really need a safe deposit box. Consider a fire proof box that you can keep at home. Carefully consider who you are going to provide a key.T
ransfer on death accounts (TOD) - Transfer on death accounts are useful with brokerage accounts. In the event of your death the assets transfer to the named beneficiaries without going through Probate, although they would still be subject to the estate tax. As of August 29, 2000 you may have Transfer on Death Deeds in Ohio to avoid probating your home at your death. As of July 23, 2002 you may have a TOD car title.U
nderstand what you sign - Always read and understand what you are signing regarding your Will, Powers of Attorney, Health Care Powers of Attorney, Trusts and other legal documents or contracts.V
aluation - At death whatever you own receives a step-up in its value to the fair market value on date of death. A truly great tax shelter, except you must die to take advantage of the benefit. Valuation can be affected by using Limited Partnerships, Limited Liability Companies, or other corporations. These types of businesses can provide minority discounting and lack of liquidity and lack of marketability discounts. A complex but significantly great benefit for estates in excess of $1 million after 2002.W
ill - The document which must be signed by the Testator in the presence of two witnesses. Never write on your original Will. A Will is amended with a Codicil which must be signed with the same formality as a Will. A Will does not increase the costs associated with dying and in fact can reduce the costs and fees associated with assets passing at death. A Trust is not a substitute for a Will. A Power of Attorney is not a substitute for a Will, since a Power of Attorney is revoked by death. A Will only controls at death.X
- signing. Signing documents with an "X" or a mark is valid for those with physical disabilities. However, the witnesses must sign the document acknowledging that an "X" or mark was used in place of a signature.Y
our Simple Legal Affairs Checklist - Enclosed is a nine question Checklist which you can review to determine if your legal affairs are in order.Z
ymurgy - The branch of chemistry dealing with fermentation, as in making wine, brewing, etc. The last word in my dictionary and has nothing to do with estate planning, until we come up with a better word.