The 3-Ws for Why You Need a Trust

Posted by heschlawadmin on July 10, 2024

Estate planning is about who gets what and when. While most people accomplish this task with a valid will, a trust is used to control the transfer of your assets to your heirs. A trust is “a legal contract, drafted by an attorney, with a named trustee who ensures your assets are managed according to your wishes both during your lifetime and after your death.” A trust, unlike a will, can be used during your lifetime if you become incapacitated and can no longer manage your assets. Besides this benefit, there are three key reasons why you should use a revocable trust in your estate plan: a trust allows you to prevent your assets from going to the wrong heirs, prevent your heirs from making wrong investments, and protect your heirs from wasteful spending.

First, a trust can prevent assets from going to the wrong heirs. For many, if not all, of us, we want to ensure that our assets after our passing go to those in our bloodline, most obviously our children and grandchildren. A trust can be composed to prevent one’s assets from going to one’s in-laws or to your child’s stepchildren or your child’s significant other. If you die and your child inherits money from you, it is likely that upon your child’s death, those assets could be inherited by your in-laws and their children. A trust can guarantee that your grandchildren inherit your estate after the death of your children instead of your children’s spouses, significant others, their unrelated children, or other family members. Trusts can also determine how one’s assets are allocated among the heirs if your children are part of a blended family (as in your child remarries and the second spouse has children from prior relationships). Your trust can be constructed in a way to allow your assets to go only to your children and grandchildren in such cases.

Second, a trust can prevent your heirs from being able to make wrong investments. If your child makes bad investments, the inherited assets can be lost in worthless investments or bad loans. A trust can be drafted with conditions on how the assets can be invested or direct your trustee to use professional money managers to make investments. Trusts are especially helpful when one of your heirs may suffer from an addiction. If one of your heirs has an addiction with drugs or alcohol, a trust can control your assets so that they will not be distributed to the heir or limit their distribution until they receive treatment. Not putting such assets in a trust may allow such heirs to use the assets to fuel their addiction.

Third, a trust can prevent your heirs from engaging in wasteful spending of your assets once they receive them. Wasteful spending best shows itself through lottery winners. Seventy percent of lottery winners file bankruptcy. This logic can extend to why your heirs need a trust. A person who receives a large amount of money in a short period has a tendency to spend it all about as fast as they receive it. Like with wrong investments, a trust can distribute assets only when certain conditions are met. For example, a trust can be drafted in a way that distributes assets in limited amounts at certain times so that your heirs inherit outright control of their inheritance over a period of ten years or longer. Hopefully, as they make mistakes, they will learn from them.

Overall, a trust is an essential tool for those who are concerned with how their assets will be distributed once they are no longer here. A trust can be drafted with terms and conditions that dictate when one’s assets are distributed. Trusts are essential for preventing your assets from being distributed to wrong heirs, used for wrong investments, or wasted.

Everyone should meet with their attorney to update their will and other estate planning documents every two to three years. If you or a loved one is concerned about how their assets will be distributed upon their death, please contact legal counsel to review your current estate plan. If you or a loved one want to set up a trust in your estate plan, please contact Bill Hesch at (513) 509-7829 for a second opinion regarding your need for a trust and updating your other estate planning documents.

Legal Disclaimer: Bill Hesch submits this blog to provide general information about the firm and its services. Information in this blog is not intended as legal advice, and any person receiving information on this page should not act on it without consulting professional legal counsel. While at times Bill Hesch may render an opinion, Bill Hesch does not offer legal advice through this blog. Bill Hesch does not enter into an attorney-client relationship with any online reader via online contact.

IRS 2023/2024 Underpayment Penalty Rate of 8% is the Highest in 17 Years

Posted by heschlawadmin on March 15, 2024

The United States has a “pay as you go” tax system in which payments for income tax (and, where applicable, Social Security and Medicare taxes) must be made to the IRS throughout the year as income is earned, whether through withholding, by making estimated tax payments, or both.

You suffer an estimated tax penalty if you don’t pay enough to the IRS during the year.

The IRS levies this non-deductible interest penalty on the amount you underpaid each quarter. The penalty rate equals the short-term interest rate plus three percentage points.

Due to the rise in interest rates, the current penalty rate is 8 percent—the highest in 17 years. And since it’s not deductible, the net cost likely far exceeds 8 percent.

If you’re an employee and have all the tax you owe withheld by your employer, you don’t have to worry about this penalty.

But you must worry about it if you’re self-employed because no one withholds taxes from your business income. Likewise, you must worry if you receive income from which no, or not enough, tax is withheld—for example, retirement distributions, dividends, interest, capital gains, rents, and royalties.

C corporations are also subject to the underpayment of estimated tax penalty.

Fortunately, it’s easy to avoid this penalty!

All individual taxpayers have to do is pay (1) 90 percent of the total tax due for the current year or (2) 100 percent of the total tax paid the previous year (110 percent for higher-income taxpayers with adjusted gross incomes of more than $150,000 ($75,000 for married couples filing separately).
Corporations must pay 100 percent of the tax shown on their return for the current or preceding year (but large corporations can’t use the prior year).

Most individuals and corporations make equal quarterly estimated tax payments to the IRS. The IRS applies the penalty separately for each payment period. Thus, you can’t reduce the penalty for one period by increasing your estimated tax payments for a later period. This is true even if you’re due a refund when you file your tax return.

Some individuals and corporations can use alternate methods for computing estimated taxes, such as the annualized income method. But the alternate methods can be complicated.

If you want to discuss your estimated taxes, please call me, Bill Hesch at 513-509-7829.

Bill Hesch is a CPA, PFS (Personal Financial Specialist), and attorney licensed in Ohio and Kentucky who helps clients with their financial and estate planning. He also practices elder law, corporate law, Medicaid planning, tax law, and probate in the Greater Cincinnati and Northern Kentucky areas. His practice area includes Hamilton County, Butler County, Warren County, and Clermont County in Ohio, and Campbell County, Kenton County, and Boone County in Kentucky.

(Legal Disclaimer: Bill Hesch submits this blog to provide general information about the firm and its services. Information in this blog is not intended as legal advice, and any person receiving information on this page should not act on it without consulting professional legal counsel. While at times Bill Hesch may render an opinion, Bill Hesch does not offer legal advice through this blog. Bill Hesch does not enter into an attorney-client relationship with any online reader via online contact.)

Gift Annuity: Protection Against the Fear of Losing Your House to the Nursing Home

Posted by heschlawadmin on March 15, 2024

If you are on Medicaid and are in or planning to enter a nursing home, how can you protect your home and assets?

The high and ever-increasing cost of long-term care can be daunting and will quickly deplete your savings without the assistance of Medicaid. However, Medicaid will still seek to recover its cost from your estate. This could cause you to lose your house and other property to the point where there is nothing left for your children. The Medicaid Estate Recovery Plan (MERP) is a federally mandated program that began in Ohio January 1, 1995. When a Medicaid recipient dies the MERP attempts to recover the cost of services that Medicaid paid for from the deceased’s estate. The estate includes all personal and real property, including assets conveyed to others via survivorship. However, there are ways you can plan ahead to ensure MERP cannot take the house, or that your beneficiaries can still receive value from its sale.

One such protection is a Gifted Annuity. If you do not qualify for any of the exceptions that would allow you to keep your home, then you must sell to ensure your children or beneficiaries can still receive some of the value rather than the entire estate being recovered by Medicaid. The annuity will allow the insurance company to fund a Gift Annuity and for some of the value of your estate to be maintained. This route can guarantee that a portion of your house equity will still be given to your children or beneficiaries. Otherwise, based on the current cost of long-term care, it is likely the nursing home expenses paid by Medicaid will create a lien on the value of your home and leave your family with little to nothing.

There are many considerations and options to weigh when trying to protect your assets from all going to cover the cost of nursing home care. The rules governing the MERP, its exceptions, and methods you can use to protect yourself and your family are very complex. It is highly recommended that you work closely with your attorney, CPA, and financial advisors to navigate various options.

Long COVID-19 and Long-term Disability Insurance Claim Issues

Posted by heschlawadmin on May 12, 2022

With the arrival of COVID-19, the world as we knew it changed, and with it, some legal processes are changing as well. One new concern that people and insurance companies may need to handle differently involves the effects of Long COVID-19 and insurance claim issues related to long-term disability. While most people who have had COVID have recovered within a few weeks, some people are experiencing long-term effects and have been unable to return to work.

Currently, there are three main sources of disability insurance: (1) employer-paid disability, such as short and long-term disability and workers compensation; (2) Social Security disability insurance; and (3) individual income insurance policies. While each has its benefits, the root of the problem lies with obtaining long-term disability for people suffering with debilitating symptoms of Long COVID. For example, Social Security offers long-term disability only. To be eligible for Social Security long-term disability, the applicant must show that they cannot work in substantial gainful activity, work their normal job, or adjust to a different job because of their outstanding medical condition. They must also show that their condition is expected to last at least one year or result in death.

The problem that many applicants are having relates to how to prove they are “disabled” to meet the definition for eligibility. The list of Long COVID symptoms is lengthy and varied, ranging from severe cardiovascular issues to kidney dysfunction, and even includes symptoms like depression and anxiety. Each person has unique symptoms or a series of symptoms that affect their ability to work, which makes it difficult for doctors to predict whether those conditions will continue and when people can return to work.

Additionally, each type of long-term disability provider has a required waiting period before eligibility for long-term disability may begin. These periods also vary and may be thirty, sixty, or ninety days. With COVID-19 still being a new disease, and with no current studies available to establish how long the symptoms of Long COVID may last, it is also difficult for doctors to properly certify that patients are not able to work when the eligibility waiting period expires or that their condition is expected to last for at least one year. Doctors can easily disagree professionally as to whether or not a person’s symptoms should keep that person from being able to work.

Unfortunately, many people do not have the luxury of not working for up to three months while waiting for their disability benefits to begin, which poses an additional problem – if someone is attempting to work while waiting for benefits, that ability to make money could work against them. Another problem posed in Workers Compensation scenarios is how to prove that a patient caught COVID while at work and not outside of the office.

If you are experiencing symptoms of Long COVID that are affecting your ability to work, it is important to collect documentation before submitting your claim. First, review your insurance policy to discover how disability is defined and the eligibility requirements to identify any exclusions or limitations. Then, after you satisfy the thirty, sixty, or ninety-day waiting period, you may submit your claim with all of your documentation.

Important documentation you will need includes all of the symptoms related to your condition, as well as witness statements to support how COVID health problems have affected your ability to work. The insurance provider will also want to see your job description and medical records. Make sure that you document any verbal calls that you have with your medical provider, and always send a follow-up email to recap the conversation. In addition, try to avoid using words like “never” and “always” in your documentation and do not exaggerate or overstate your symptoms. And, of course, in this world of social media, it is equally important that your social medial postings be consistent with your condition. If an insurance company decides that you have exaggerated or lied about your medical condition, they may deny your claim entirely.

There are organizations that are seeking to help Long COVID survivors. The Long COVID Alliance and Survivor Corps are dedicated to providing education and resources for COVID-19 patients, and connecting them with medical and scientific research efforts to help with the national response. Survivor Corps may be found at www.survivorcorps.com. Body Politic is another organization that offers a COVID-19 support group for both patients and caregivers to provide emotional support, resources, community, and opportunities for advocacy. Body Politic may be found at www.wearebodypolitic.com.

Estate Planning Family Meeting

Posted by heschlawadmin on November 15, 2021

One often-overlooked aspect of estate planning is the family meeting. Family meetings are important to the estate planning process because they allow you to communicate your wishes to your loved ones while you are capable of doing so. Transparency with your family is vital in order to lessen any surprises to them after your death, to reduce or eliminate fighting between your beneficiaries, and to explain any steps you have taken and the reasons for those steps. A meeting can also be a good time to resolve any conflict between your family members and to set general expectations about the distribution of your assets as well as any decisions you have made about your end-of-life care. If possible, it is best to schedule a family meeting when you are in good health, and after your estate planning documents have already been signed.

A well-planned family meeting will allow everyone to have access to the same information at once and will give family members a chance to ask questions to better understand your wishes and their roles after your death. You may wish to have a neutral third party such as your estate planning attorney present if you feel that there may be potential conflict needing to be resolved. Your attorney may also be able to better explain the legal documents that you will be discussing.

Documents for Estate Planning Family Meeting

Some of the documents that your family will need to know about include your advance healthcare directives, such as your healthcare power of attorney, living will, and/or do-not-resuscitate order. This will let them know who you have authorized to make healthcare decisions on your behalf should you become incapacitated. Since this is a difficult topic and discussion could become emotional, it may be wise to cover this at the beginning of your meeting, while everyone is calm and emotions are under control. Try to keep the tone of the meeting positive as well. Remember – while the conversation may be uncomfortable, the long term peace of mind you are hoping to achieve for everyone involved will make the conversation worthwhile.

Other items to discuss with your family are how you have structured your estate, your will, and any trusts that you have created. The family meeting is a perfect time to potentially disclose your assets to your family members, as well as address any nonfinancial assets. Your family may have sentimental items they would like to request. Some people choose to make lists of these requests to include in their wills.

How to Plan Your Estate Family Meeting

1. Create An Agenda

Decide what you need to discuss and in what order to discuss it.

2. Decide Who to Invite

Next, decide who to invite – usually, any fiduciaries, children, and sometimes grandchildren. Take into consideration that holding two meetings may be necessary if you have a blended family and your plan is to keep assets separate. It may be helpful to get input from your estate planning attorney about who should be at your family meeting and what documents people will need to see.

3. Announce the Meeting to Invitees

After your preliminary planning is finished, announce the meeting to your invitees. Try to announce the meeting in a way that does not create any alarm – for instance, letting your invitees know that you are in good health and that a family meeting is a normal part of estate planning will help to alleviate their worries. Make sure that you make the reason for the meeting clear so that everyone can be emotionally prepared and nobody is blindsided by the topics you will discuss. If possible, try to schedule the meeting as its own event, and not on a holiday or a day that may be significant to someone in your family, such as a birthday. While your goal should be for everyone to have a positive experience, if conflict does take place, it would be best not to create negative memories on a special day.

4. Host the Meeting

When you sit down with your family to hold the meeting, make sure to follow the agenda you have created so that you discuss everything that you want to. After your initial meeting, you may need to hold follow-up meetings, especially if you make any changes to your legal documents after a birth or death in the family. You may also want to encourage your family members to create their own estate plans.

If you want to make sure that your estate is properly planned, your assets are accounted for, and your loved ones are properly prepared to carry out your wishes, please Contact Bill Hesch, attorney, CPA, and financial planner today.

Should You Draft Your Own Will on the Internet?

Posted by heschlawadmin on January 20, 2021

WHY DRAFTING YOUR OWN WILL ON THE INTERNET MAY HURT YOUR INTENDED HEIRS

All too often, people with good intentions make an attempt to draft their own will or will substitute. Unfortunately, this frequently leads to disastrous results and the inheritance goes to the wrong heirs. Below are a few hypotheticals showing what can go wrong when one tries to draft their own will or dies without one:

Example 1: John has two children: Anne and Beth. Anne is independently wealthy and John wants to provide the majority of his estate to go to his daughter Beth. John decides to type his Will himself and has Beth and a neighbor act as witnesses to the Will. Under Kentucky and Ohio law, since Beth is an heir who witnessed the Will, the Will is valid because it had two witnesses. However, now Beth cannot inherit more than she would take as if he died without a will as she was an interested witness. Unfortunately for John, the entirety of his estate will instead be divided as if he died without a will and the assets will be divided equally among Anne and Beth, despite his wishes.

Example 2: John is currently married to Jane. However, they are separated with no desire to reconcile their relationship, although they never actually divorced. John has two natural children from a previous marriage: Anne and Beth. Intending his assets to go only to his two natural children at the time of his death, John drafts his will and specifically leaves all of his estate to them. Unfortunately for John, once he passes away, under Kentucky and Ohio law, his estranged spouse Jane can take against his will and claim a sizable portion of his assets. Even though she was not listed in the will, she can inherit her spousal share. John’s natural children will not receive all of his assets.

Example 3: John drafted his own will several years ago with very specific intentions for distributing certain property to family and non-family individuals. upon his death. John has recently passed away and no one is able to locate his will or a copy of it. As a result, John’s estate will be administered in probate. Under the laws of intestacy, the estate assets will go to his family tree as determined under Ohio and Kentucky laws. John’s true wishes will never be fulfilled, and the non-family members including his live-in partner would receive nothing.

Example 4: John is married to Jane. Each have two children from a prior marriage. Jane passed away before John. Having become very close to his stepchildren, John intends to give them and his natural children each an equal share of his estate upon death. John sadly passed away at age 45. He never had a will drafted as he felt he was still young and had plenty of time left to do so. Even though he did not have a Will, he believed his assets would be divided equally amongst his children and step children. Unfortunately for John, this resulted in the entirety of the estate being inherited by his natural children, and his stepchildren receiving nothing.

In each of these hypotheticals, John’s mistakes could have been prevented by consulting an experienced attorney. Bill Hesch and the attorneys of William E. Hesch Law Firm have years of experience in assisting in estate and financial planning. For more information about how to plan your estate and have a professional Will or Trust drafted to properly ensure your wishes are met, call Bill Hesch to set up a free consultation at 513-509-7829.

(Legal Disclaimer: William E. Hesch submits this blog to provide general information about the firm and its services. Information in this blog is not intended as legal advice, and any person receiving information on this page should not act on it without consulting professional legal counsel. While at times Bill Hesch may render an opinion, Bill Hesch does not offer legal advice through this blog. Bill Hesch does not enter into an attorney-client relationship with any online reader via online contact.).

Biden’s Tax Plan: Income & Estate Death Tax for Wealthy Taxpayers

Posted by heschlawadmin on December 23, 2020

It’s no surprise that once Joe Biden takes office in 2021, some of his initial actions will likely revolve around his plans and campaign promises to increase taxes on Americans of at least moderate wealth (those earning a minimum of $400,000 per year). However, one less-known caveat is the effect Biden’s taxation plans will have on estates should his plans come to pass.

At this time (December 2020), the unified federal estate and gift tax lifetime exemption sits at $11.58 million ($23.16 million for married couples). This exemption is set to expire on December 31, 2025, which will result in it reverting back to an exemption in an estimated amount of $6 million, affecting an estimated 7 million American families. However, one Biden proposition would include rolling back the lifetime exemption rate even further to $3.5 million, meaning any assets in the estate at the time of death over the $3.5-million-dollar threshold would be subject to today’s estate tax of 40 percent. There is concern that Biden could also accelerate the sunset provision of the $11.58 million exemption, resulting in this occurring much sooner than 2025. Further, additional Biden proposals include not only lowering the amount of exemption for estates but also raising the estate tax from 40 to 45 percent.

In addition to Biden’s plans for estate tax, concerns have also arisen regarding his plans to increase the capital gains tax rate for those earning greater than $1 million to 39.6 percent and terminate the tax code’s step-up provision that currently allows heirs to bypass taxes on gains accumulated before death. In addition, the estate would be subject to income taxes on the transfer of assets to heirs at death. The unrealized appreciation would be taxed to the estate on the transfer of assets to heirs. If this takes effect, compounded with the 3.8 percent Net Investment Income Tax, estates would face an immediate 43.4 percent income tax at the time of death under Biden’s plan. Further, on assets having unrealized appreciation, the estate will be paying income taxes at 43% and estate taxes at 45%. This equates to a combined effective tax rate of 71%.

These changes could result in millions in additional taxes being taken out of the estate instead of that wealth being passed along to heirs and named beneficiaries. Bearing that in mind, now could be the time to act in order to ensure that your loved ones receive the bulk of your assets rather than having it taxed away. For more information about how to maximize the assets passed on by your estate, call Bill Hesch to set up a free consultation at 513-509-7829.

Patent Pending Retirement Trust for Baby Boomers’ Children

Posted by heschlawadmin on June 1, 2020

William E. Hesch Law Firm, LLC

3047 Madison Road, Suite 205

Cincinnati, OH 45209

(513) 731-6601 Phone

(513) 731-4173 Fax

www.heschlaw.com

bill.hesch@williamhesch.com

Patent Pending Retirement Trust for Baby Boomers’ Children

The Patent Pending Retirement Trust is an innovative trust idea that William E. Hesch, Esq., CPA, PFS created when working on an estate plan for his millennial children. Bill was worried about his children planning for their retirement, and was trying to think of creative ways in which he could ensure that the two of them would have a sufficient amount of money to live off of when they reached retirement age. Using his expertise in estate planning law, wills and trust law, asset protection planning and tax planning from his years of experience as an attorney, CPA, and financial planner (PFS) Bill created a Retirement Trust for his children. In its simplest form the Retirement Trust is a trust meant to be a retirement plan for the Grantor’s children who do not expect Social Security to be, much of any help to them in thirty (30) years.

After using the trust for his estate plan, he began sharing the idea with clients over the past three years, to gauge whether or not there was a need in the estate planning market for such an instrument. Many clients loved the concept and have in fact requested a Retirement Trust for their own estate plan. Due to the positive reaction from his clients, Bill filed for a patent in August, 2018 and the Retirement Trust became “patent pending” in August, 2019.

Why use a Retirement Trust?

It is well known that the younger generations are not saving enough for their retirement. Millennials are not saving for retirement in their 401(K)s and IRAs, and social security may not provide much retirement income for the generations that follow the baby boomers. The main purpose for the Retirement Trust is to provide financial security for Grantor’s children in their retirement years. A Retirement Trust allows the Grantor (or Grantors) to hold assets in a trust for the benefit of their children until their children reach an age specified by said Grantor, typically sixty-two (62) years of age. Upon reaching age sixty-two (62), the children begin receiving monthly distributions of retirement income, as provided for in the trust document. There are a number of features the Grantor had customized in the instrument for his or her specific situation.

Who are the clients using Retirement Trusts?

This trust is typically used by baby boomer clients whose children are already old enough to be out of college and in the work force. These clients want the benefits of using a revocable trust in their estate plans but are concerned with their children’s (or other beneficiaries’) financial security when they retire. They have these concerns for many reasons, including: (1) their children’s past financial decision making; (2) have children who are entrepreneurs and are worried those children won’t have a nest egg for their retirement; (3) their children have potential creditor problems and don’t want them inheriting trust assets outright in a lump sum distribution; or (4) they believe social security benefits will not be there for their children. It is a fact that seventy percent (70%) of lottery winners end up bankrupt in just a few years after receiving a large financial windfall. It is not hard to believe that many children receiving a substantial windfall all at once from their parent, in their thirties or forties, may suffer the same fate.

How does the Retirement Trust work?

The Retirement Trust is a revocable trust that becomes irrevocable upon the death of the Grantor or both Grantors. Upon the death of the Grantor, the trust is divided into sub trusts for each child. Each child has the right to certain monthly distributions of their sub trust until that child reaches retirement age, typically age sixty-two (62).

Required distributions before reaching age sixty-two (62).

The Grantor has a choice of the method in which the required distributions before reaching the age of retirement are distributed, but it is commonly one or more of the following options: (1) a fixed dollar amount of the trust income and principal each year, adjusted for inflation annually (i.e. $20k); (2) a fixed percentage of the trust principal each year (i.e. 4% which would allow the trust nest egg to grow, while supplementing beneficiary’s income.); and (3) the Grantor may attach a work requirement to the beneficiary’s distributions before reaching the designated retirement age. If a child becomes disabled, monthly payments commence for early retirement.

Distributions upon reaching the age of retirement.

Once the child reaches age sixty-two (62), the balance of assets remaining in that child’s sub trust are totaled and that child is entitled to a monthly annuity payment using the average monthly payment amounts that would be payed from Northwestern Mutual and New York Life annuities, payable for the remainder of that child’s life. Typically, the trust will outline that payments shall be paid monthly beginning on the last day of the month in which the child turns sixty-two (62).

Northwestern Mutual and New York Life do not need to be the insurance companies identified in this section of the Trust. Any insurance company’s annuities or actuarial tables or the IRS life expectancy tables can be used to compute a monthly benefit to be payable for that child’s life. To clarify, an annuity is not actually purchased from one of these insurance companies. The Trustee simply obtains a quote from each insurance company and pays from the trust the equivalent of the average monthly annuity payment that would have been paid from those insurance companies had an annuity actually been purchased.

For more information about this creative, innovative, Patent Pending Retirement Trust, call Bill Hesch to set up a free 30-minute initial consultation at 513-509-7829.

Hesch Law / CPAs Office Coronavirus Procedures

Posted by heschlawadmin on May 28, 2020

Our firm remains open and available to serve you while maintaining our top priority of keeping our employees and clients SAFE. I am working daily at the office from 9am to 5pm and office staff are working at home as much as possible. Meetings with staff are encouraged to be by phone conference or Zoom if possible. Otherwise, in person meetings in the office are kept to a minimum and safe distancing is strictly observed.

Tax information can be mailed or emailed to us or can be dropped off on our 2nd floor stairwell by appointment.

Any documents that need to be executed and witnessed or dropped off are done by appointment only. Please schedule this with Bill Hesch at 513-509-7829 or office staff at 513-731-6601 or 513-731-6612. Arrangements can be made to schedule a drop off on the second floor stairwell to our front door entrance on Madison Road.

In regard to the sanitation of our office, the office is deep cleaned every week. We disinfect all door handles, bath sink handles and light switches every day.

When the staff is meeting in each other’s work space or meeting with clients, both employees and clients shall wear masks. Also, when staff enter into the common areas in our office, they shall be wearing their masks.

Hand sanitizer and masks have been provided to all staff and will be made available to any visitor in the office.

Thank you and prayers for everyone’s safety!!

Bill Hesch

William E. Hesch Law Firm, LLC
William E. Hesch CPAs, LLC
3047 Madison Road, Suite 201/205
Cincinnati, OH 45209
(513) 731-6601 Phone
(513) 731-6612 Phone
(513) 731-6613 Fax
www.heschlaw.com
www.heschcpa.com
bill.hesch@williamhesch.com

Make sure you have your Financial/Health Care Power of Attorney and Living Will Executed During this Unprecedented Time

Posted by heschlawadmin on April 24, 2020

With all that is taking place in our nation at this time, we at the William E. Hesch Law Firm, LLC are trying to emphasize the importance of executing your Financial Power of Attorney, Health Care Power of Attorney, and Living Will so that your family can manage your finances and make your health care decisions if you are disabled or incapacitated.

These three documents are often overlooked by most individuals since 50% of people die without a will. However, if you become disabled or incapacitated without these documents, then your family must go to the probate court and get appointed your guardian in order to manage any assets in your name (e.g. IRA, 401K, etc.) or make your health care decisions.

The guardianship process is an administrative nightmare for family members, and just ends up generating hefty attorney’s fees especially in Hamilton County Ohio. First, you have to get a guardian appointed, and then the Court sets a monthly budget and the Guardian needs to get court approval every time an extra expense not in the budget occurs. Additionally, you must keep an annual accounting to document with a receipt every dollar you spend. Also, it is a requirement in Hamilton County Ohio that you have an attorney co-sign on every check that you write.

The Financial Power of Attorney is a powerful document that is not costly to create, and it allows whoever you designate to access your assets in order to pay your bills and take care of your finances. Your family member or friend who is appointed your power of attorney (POA) will be able to take this document to the bank and get listed on your account as your power of attorney. This allows the POA access to the account without court involvement. Obviously, this is a powerful document and you would only want to designate someone you trust, but it makes things a lot easier on your family.

It is also just as important to execute the necessary health care documents. It is important to note, that in Kentucky the Health Care Power of Attorney and Living Will are combined into one document. In Ohio, they are two separate documents. You always need a Health Care Power of Attorney, because if you became sick and temporarily unconscious or incapacitated, you would need to designate a health care POA to make medical decisions if you are unable to do so for any reason. The Health Care Power of Attorney allows whoever you designate to make those health care decisions on your behalf.

The Living Will is needed when you are either terminally ill or permanently unconscious and at least two physicians have determined that life support and a feeding tube is not going to help you get any better, rather they will simply prolong the process of dying. In that situation by having a Living Will, you are directing your doctors that if you are terminally ill or permanently unconscious that you do not want life support or a feeding tube and you do not want your family to have to make that decision. If you only have a Health Care Power of Attorney in Ohio, and no Living Will, then you are saying that you want your family to make all of your end of life decisions. If you know that you don’t want life support in those situations, and you do not want your family to have to make those decisions, then you need the separate Living Will document in Ohio. In Kentucky, the section for the Living Will is included in the Health Care directive.

In practice, we have seen those instances where families only had a Health Care Power of Attorney, because they thought they would be able to make those end of life decisions for a spouse or parent and it ended up being very difficult for them. It is important to keep this in mind when making these estate planning decisions.

Another thing to be aware of is the grey areas, which come up more often. For example, you are not terminal or permanently unconscious, but your heart stopped. In this situation would you want to be resuscitated using paddles, use medication to restart your heart, or would you want a DNR? Although it may be difficult, these are conversations we advise you to have with your doctor and family members so that they know what you would want in these various situations.