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513-721-1513 | ZimmerLawFirm.com July 2024
BEYOND THE BASICS
Including Often-Forgotten Assets in Your Estate Plan
If avoiding probate of your estate after you are gone or if you were to become incapacitated is important to you, then you probably have made a Revocable Living Trust plan. Your Trust will only avoid probate for assets titled to the Trust, or those made payable to the trust at your death as either the primary (first) beneficiary, or as the contingent (second level), or tertiary (third level) beneficiary. At ZLF, we work in the very beginning of the planning process to get this done. Despite our best efforts, we have seen many instances where people who have made Living Trusts still have assets that must pass through probate when they die. Often this is because of “forgotten assets” or situations in which people forget that they need to synchronize asset ownership with their trust planning. This article touches on some of the most common situations we see. If any of these apply to you and you are a ZLF client, you can either find instructions in your Legacy Wealth Planning Portfolio to fix the problem or call us for assistance. New Accounts Opening new bank or investment accounts is a common occurrence after making a trust. Remember to take title under Contact our office today if you would like us to host an educational workshop at your church, business, or other event.
your trust, or for your everyday checking account you can title the account jointly with your spouse and name your trust as beneficiary when the second spouse dies. Not sure if you made this slip-up? Look at who the monthly account statements are addressed to. That is who owns the account in most instances. If you're uncertain, call the bank. Refinanced or New Home Even though as a practice we title homes to a client’s trust or make them so they vest in the trust when they die, it is not uncommon for client homes or other real estate to be personally titled to them when they die. How does this happen? We have seen clients purchase property and forget they should title it to their trust. Or they may have refinanced a mortgage loan and had to title it in their personal names first at lender request but forgot to change titling back to the trust. Call us if you discover this applies to you, and we can help you fix this oversight. Vehicles Ohio residents have it easy. As a married couple, you can own any number of motor vehicles and pass them to your spouse at your death without probate, even if they are not trust-titled, as long as your interest in them is not worth more than $65,000.00. Or vehicles can be jointly owned (make sure the title specifies that the title vests in the surviving owner). Or you can make motor vehicles transfer- on-death to your spouse, to a child(ren), or your trust. And of course, you can title vehicles to your trust. You have similar options for watercrafts. Check your vehicle and boat titles! Many people forget and just take title in their personal names.
Timeshares If you own a timeshare interest and received a deed when you bought it, then to avoid double probate proceedings (in your home state and the state where the property is located) the property must be conveyed to your trust by another deed, or make a transfer on death deed to your trust in states that permit that. In most states, a local attorney must do the legal work. If you have a points program, then your contract rights should be assigned to you as Trustee to avoid probate. Check with the timeshare company for details. Frequent Flier and Credit Card Rewards Points Frequent flyer miles or reward points from airlines and credit card companies can accumulate significant value over time. Check the terms and conditions of your loyalty programs to understand if and how your points can be transferred upon your death so they are not lost at your death. Beneficiary Designation When Switching Jobs or Retirement When you acquire a new job or retire, you will need to update your beneficiary designations on retirement accounts, pension plans, and life insurance policies.
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Stock Split Offs If you own publicly traded stocks, be mindful of stock splits and spin-offs, which can create additional shares or shares in new companies that may be issued in your name instead of your trust name. Transfer these to your trust or title them jointly with your spouse and then to your trust when you both pass away. Stock in Insurance Companies That Demutualized Some life insurance companies do not have shareholders. Instead, the policy owners own the company. These are called mutual insurance companies. In the past 20–30 years, some of those companies have “demutualized,” which means they issued stock to their policyholders. Because insurance policies are usually personally owned, the stock is issued to the policyholders personally and not to their trust. This is one of the most frequent probate assets we have seen. These stocks, or the accounts they are directly registered in, can be changed to trust title.
Savings Bonds Savings bonds can accumulate significant value over time — that is why it is essential not to forget them in your estate planning process. The rules are complicated; generally, you can add a co-owner with rights of survivorship or name your trust as current owner. Visit the Treasury Department website for forms and instructions. Inherited IRAs Inherited IRAs must be withdrawn on a certain timetable established by federal law. That topic is too detailed to be covered in this article, but we want you to be aware that there are Minimum Required Distribution rules. Also, many people forget to name beneficiaries to receive inherited IRAs at their deaths. Changing Financial Advisor or Advisory Firm We have seen estates that required probate because when the client changed their financial advisor or moved from
one custodian to another, the new accounts were not titled to their trust. Or beneficiary designations were not set up properly. Check your accounts if you have made these changes. Remember: A comprehensive estate plan goes beyond the obvious assets and includes everything of value, no matter how insignificant! What you do or forget to do after you make your estate plan can cause your planning to fail! Give us a call today if you are not sure all your assets, both financial and real estate, are properly titled and beneficiary designations properly set up. We will schedule a free Trust Review and send you a list of what paperwork to bring with you so we can check things out for you. We’ve got your back!
Transfer Trouble LIMITATIONS AND RISKS OF TRANSFER ON DEATH DEEDS
Many once-complicated processes have become simplified in the modern age of convenience, such as booking a hotel room online. It can be tempting to try to simplify other parts of our lives with a couple of clicks on a computer. However, when it comes to estate planning, simple does not always mean better. An example of this is the Transfer on Death Deed or TODD. TODDs allow you to name a beneficiary who will receive your property upon your passing. While this seems like an elegant and hassle-free way to establish your inheritance, it has significant downsides and potential pitfalls. Joint Ownership One of the greatest points of contention around TODDs involves joint ownership. If you are a joint owner of a property, the other joint owner will inherit sole ownership upon your death — regardless of whether there is a TODD on record. This
is an especially important issue for married couples, who often share joint ownership of a property, such as a home; this joint ownership will supersede the TODD, even if the intended beneficiary is someone other than your spouse. Disinheriting by Mistake If a will and TODD contain conflicting information regarding property
inheritance, it can cause significant problems for your beneficiaries. Existing TODDs can also resurface and derail other estate plan documents representing the deceased’s most recent and accurate wishes. Because of this, it is important to revoke TODDs before completing new estate plan agreements. Potentially Costly With TODDs, there is no warranty of title, which means a property owner’s debts may be passed on to their beneficiary along with the property. In effect, your beneficiary may be liable for your financial obligations, which can cause undue economic hardship. Another shortcoming with TODDs is that, unlike wills, they cannot be amended and must be revoked. If you want to rework a TODD, you must incur the costs of drafting one entirely from scratch, making the money you spent on your previous TODD meaningless.
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TAKE A BREAK
ALIEN BALLPARK CHERRY FIRECRACKER FLAG INDEPENDENCE ORCHID PADDLEBOARD PATRIOTIC SUNDAE
The History of the Wealthy and Powerful African Emperor Remembering Mansa Musa
SUNSCREEN TRAMPOLINE
Like a spark, some legends flicker and fade, whereas others give birth to a roaring flame that spreads far and wide. The title of Mansa, which means emperor, was the honorific used by rulers of the ancient kingdom of Mali in West Africa. Musa I inherited the title in 1312, after the kingdom’s last ruler, Mansa Abu Bakr II, set out on an ill-fated voyage to explore the Atlantic Ocean and never returned. While his predecessor may have had grand ambitions, Mansa Musa’s legacy would be immortalized by his astounding achievements. The Unknown Kingdom In the early 14th century, Mali was a flourishing kingdom that profited massively from its seemingly bottomless salt and gold mines. Despite the nation’s wealth, it was largely unknown outside of West Africa. This relative anonymity ended in 1324 when Mansa Musa, a devout Muslim, began his 4,000-mile pilgrimage to Mecca. Mansa Musa did not travel alone; 60,000 men, including over 10,000 slaves and 80 camels, each carrying 300 pounds of gold, accompanied him. The Legend Begins Mansa Musa’s legacy was born during his stop at Cairo, then part of the Mamluk Sultanate. According to a description of the visit written just a few years later, Mansa Musa showered the Mamluk courtiers and merchants with gifts of gold, spending and giving away vast swathes of wealth during his stay. So great was his expenditure that the value of gold plummeted in the country and would not recover for over a decade after Mansa Musa’s pilgrimage. Give and Take More than a giver, Mansa Musa was also a builder and conqueror. He annexed the Kingdom of Songhai in West Africa and the city of Gao, where he would later construct a great mosque. He also established the city of Timbuktu, which became famous as a center for Islamic studies. His reputation as a wealthy and generous ruler is still prevalent today, and some claim that he holds the title of the wealthiest man who ever lived!
QUINOA VEGGIE BOWL This recipe is packed with protein-rich quinoa and a colorful array of vegetables. It’s ideal for a healthy lunch or a quick dinner!
Ingredients
• 2 tbsp olive oil • 1 red bell pepper, diced • 1 yellow bell pepper, diced • 1 cup diced zucchini
• 1 cup diced mushrooms • 1 tsp dried oregano • Salt and pepper, to taste • 2 cups cooked quinoa
Directions 1. Heat olive oil in a large skillet over medium heat. 2. Add bell peppers, zucchini, and mushrooms and cook until softened, about 5 minutes. 3. Add oregano, salt, and pepper and stir to combine.
4. Add the cooked quinoa and mix thoroughly. 5. Cook for an additional 5 minutes, then serve.
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513-721-1513 ZimmerLawFirm.com 9825 Kenwood Road, STE 201 Cincinnati, OH 45242
INSIDE THIS ISSUE
Don’t Overlook These Assets in Your Estate Plan
1
The Drawbacks of Transfer on Death Deeds
2
Quinoa Veggie Bowl
3
How Mansa Musa’s Splendor Impacted the Ancient World
An Inside Look at Matthew Perry’s Living Trust
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THE LASTING IMPACT OF MATTHEW PERRY’S ESTATE TRAGIC LOSS AND LEGACIES
An estate plan is crucial for several reasons: It ensures your assets are distributed according to your wishes after you pass away and minimizes potential disputes among family members. You can also
designate guardians for minor children to ensure they are cared for. Matthew Perry, well-known for his role in “Friends,” proved to be one step ahead when he set up a living trust in 2009. The 54-year-old Hollywood star was found unresponsive after drowning in his Los Angeles, California, home on Oct. 28, 2023. According to NPR, “His drowning, coronary artery disease, and the effects of buprenorphine — a medication used to treat opioid use disorder — were noted as factors that contributed to his death, but were not the primary cause, according to the autopsy results. The death was ruled an accident.” According to a recent filing, most of Perry’s belongings will be placed in the Alvy Singer Living Trust, named after Woody Allen’s character in “Annie Hall.”
beneficiaries. His half-sister, Caitlin Morrison, and ex-girlfriend, Rachel Dunn, were also listed. Perry also indicated that any children he had would not be entitled to access his estate. (He never had children.) According to FindLaw, “The Alvy Singer Living Trust trustees are Lisa Ferguson and Robin Ruzan. Ferguson was Perry’s business manager, and Ruzan was a friend and executive producer. Perry’s estate is valued at over $120 million.” The passing of Matthew Perry marks the end of an era as fans mourn the loss of a talented actor whose work left a significant impact on the entertainment industry. However, beyond his artistic legacy, Perry’s death highlights the importance and benefits of estate planning, the significance of living trusts, and the blessing of orderly distribution of assets. His family is the fortunate recipient of his generous gift.
His father, John Perry, and his mother, Suzanne Morrison, are the trust
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