Jarvis Law Office

Disinheriting a Child? Do it right, or things could go very wrong

Family squabbles: most of us have experienced them at one time or another. Typically, things work themselves out and family harmony is restored. However, there are some family squabbles that never get resolved. If you have changed your will due to family conflict, you might want to keep a few things in mind to make sure that the instructions you laid out in your documents are followed when you pass away.

Here are a few situations that could leave your will vulnerable to court action. Read on so that you can be sure that your will cannot be contested in court.

1. Create your will now. A “deathbed will,” especially one that excludes a close family member, is often suspect.
2. Give a reason. If you decide to disinherit your child, it can help to provide an explanation in your will. This can show the family and the local probate court that your decision was intentional and well-thought out.
3. Giving too much, or too little, to a child. Even if you simply reduce the amount you give to one child over another, it is important to document a reason. For example, one of your children may have served as your caregiver and you’d like to compensate them more for his or her efforts. Whatever the reason, make sure it is clear in your will.
4. Giving your money to a non-relative. If you decide that you would rather leave your money to a non-relative over your children, it is especially important to do things right. The court is highly suspicious of situations like these. In such cases, it is best to seek the assistance of an estate planning attorney in Ohio.
5. Your will was not prepared and signed by an attorney. It is perfectly legal to create a will on your own. However, if there is anything controversial (like leaving out a child) you really should have it done and witnessed by an estate planning attorney in Ohio to make sure that the instructions you left are followed.
6. You have executed multiple wills in the years just prior to your passing. Family squabbles start and stop…and then start again. If you have created wills, rescinded them, then created additional wills as the family conflict continued, your many will-altering attempts will likely raise a red flag about your true (and final) wishes in probate court.

 

If any of these warnings make you feel uneasy about the state and validity of your current will, call our office at 1-877-653-3450. We will be happy to review your documents to ensure that they are properly created and will be executed someday just as you planned.

Business Planning for the Unexpected in Ohio

Business planning tends to revolve around where you are right now, where you’re going in the near future, and hopefully, where you’re going to be quite a ways down the road.  One aspect of business planning in Ohio that is easily overlooked is what happens to the business after you are gone.  Sure, there may be succession plans in place in preparation for your retirement, but what is going to happen if you pass away unexpectedly instead? 

For a lot of people, a business is their biggest asset. Certainly, you want to make sure it’s protected--no matter what happens.  By planning now, you can help ensure that your business will go on to survive without you instead of falling apart because you’re no longer at the helm.

Step One:  Choose a Successor for Your Business

This was already mentioned if you are planning to retire, but other situations can arise in which you are unable to continue to head up your business.  Having someone you trust lined up who is prepared to take the reins, should it become necessary, will ensure your business stays running during an otherwise chaotic time.

Step Two:  Share the Knowledge

All too often, the business owner is the only person who is privy to all the information it really takes to make the business run.  If you’re keeping everything “in your head,” how can your employees keep things running in your absence?  It’s time to gather up operational information that others may need should they be forced to step in and fulfill your role.  This doesn’t mean you need to share trade secrets with every employee; it just means that you should at least have a good blueprint for how things work that is accessible to the person or people who will need it if the time comes.

Step Three:  Know Your Assets

It’s a good idea to understand the overall value of your business.  Creating an inventory of assets is a good start in this process.  In today’s age, many assets are not even tangible items but are digital in nature—such as web properties, online accounts, and more. Talk to a professional if you need help assessing your assets.

Step Four:  Work with an Ohio Attorney

To solidify your ideas and ensure that you are planning within the scope of the law, you’ll want to sit down with a business planning attorney here in Ohio who is familiar with local laws and regulations.  Your attorney will help you draw up legal documentation that provides direction for your business when you are no longer able to retain control.  It also helps to establish your true intentions and limit the amount of challenges others may face later down the road.

If you’re ready to get started creating such a plan for your business, call our law firm at 1-877-653-3450 and ask to schedule a complimentary consultation.

Compensation for Being Your Parent’s Caregiver | Ohio Elder Law Attorney

If you are providing care to your parent, you are more than likely doing it without being asked and without compensation. It probably isn’t on your mind at all. But, I can tell you as an elder law attorney, it should be.

As a society, we value our elders and provide the care they need without being asked, just as they did for us. In most cases, the last thing on a caregiver’s mind is being compensated for their time. We value your commitment.  You should know that getting compensation for helping them might benefit everyone in the long run. This is because paying you may help them become eligible for Veteran’s benefits or Medicaid – and once eligible, they can get the professional care they need.

The Veterans Aid and Attendance Benefit and Medicaid are both means tested benefits. If you have too many assets (money or property) you would not be eligible. To become eligible, you must “spend-down” assets to a certain level. Paying you, as the caregiver, is a perfectly legal way to do that.  However, it is best to set up a caregiver contract to keep the terms of the agreement clear.

The caregiver contract should be carefully drafted so that there is no confusion about whether your parent simply gave you the money. (Medicaid will look back five years to see if the recipient gave away money to become eligible – a BIG no, no!) However, if the money is earned in exchange for providing caregiver services, then it is acceptable.

Please consider these points when creating a caregiver contract:

• Contact an experienced elder law attorney in Ohio to ensure that the compensation will count toward the spending down of their assets.
• Include a detailed list of the caregiver’s responsibilities including transportation, laundry, cleaning, etc.
• Make sure the compensation is in line with what professional caregivers charge.
• The caregiver must report the compensation as income earned on their taxes.

If you are caring for a parent – especially if that parent is likely to need long-term nursing home care – call us right away at 1-877-653-3450 for a free consultation.

Ask an Ohio Estate Planning Lawyer: “I Just Discovered a Long-Lost Sister. Can She Inherit Dad’s Estate?”

This may sound like a situation from a movie, but we have actually received a few calls like these. A long-lost child appears after the death of their parent. This is an alarming situation for so many reasons, but people often wonder if that child has a claim against the deceased’s estate.

The answer is yes, but only if you do not have a will or trust in place. When a person passes intestate (without a will), the state steps in to give you one. In most states, a person’s assets will be split in some manner between the spouse and children, if a will is not in place.  If that person does not have a legal spouse, most states will divide the estate among their children. All of their children.

Here’s an example: A 50-year-old man finds out he fathered a child when he was a teenager. The father has had no relationship with that child. The man currently has a long-term, live-in girlfriend and wants her to inherit the home they share. Should the man be worried that his estranged child will inherit the house instead of the girlfriend?

According to most state intestacy laws, which govern estate distribution in cases where there is no will in place, the answer is yes. The child would have a right to his estate. For this man, it is advisable to create a will that disinherits his child and prevents him or her from taking his assets when he dies. He could also create a will that leaves the house to his girlfriend, but also leaves part of his estate to his child.

Situations like this may be rare, but they do happen. If this is a concern for you, it is critical to seek answers to these types of questions with an Ohio estate lawyer before it is too late. To set up a consultation at our office, contact 1-877-653-3450.