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11/10/2010
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ESTATE PLANNING
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November 15-21, 2010
S-3
OVERVIEW AND TRENDS
Protect asset health by giving estate plan a checkup
W
hether you consider yourself rich or poor, when you die you will leave behind assets. Your estate might include cash and investments, real estate, tangible personal property, or even an interest in an operating business. At its most basic level, an estate plan determines how your assets will be distributed to your heirs after you die. “An estate plan isn’t just about assets, it is also about people. And when you add taxes to the mix, a process that could have been fairly simple has the tendency
Proposed trust statute targets asset protection
T
he Ohio Legacy Trust Committee, a committee of the Ohio State Bar Association, is seeking legislation in Ohio that would allow the creation of asset protection trusts. ■ What is asset protection? Asset protection planning is simply the rearranging of someone’s assets to minimize the chance of loss from future litigation claims. ■ Why does Ohio need this? To date, 11 states have adopted asset protection trust legislation. Ohio residents are establishing trusts in these states and relocating themselves and their assets to those states in order to take full advantage of those states’ laws. ■ What are the provisions of the statute? The act enables a person to establish an irrevocable trust, place assets into that trust and still benefit from those assets through the actions of one or more trustees. The person establishing the trust must create an affidavit and aver in it that the transfer will not render the person insolvent, defraud his creditors, or be done prior to filing for bankruptcy. The person must identify pending or threatened court actions. A qualified trustee must serve during administration of the trust. The trustee cannot be the person establishing the trust but can be an Ohio resident or an entity authorized to act as trustee in Ohio. The person establishing the trust can retain certain rights without those rights being construed as having retained the power to revoke the trust. The statute describes how and under what circumstances creditors have access to the assets in the trust. The proposed statute draws from the best of the other states’ laws and will allow Ohio to retain good citizens and their assets. ■
Joanne E. Hindel is chair of the OSBA Legacy Trust Committee and vice president and senior personal trust officer for Fifth Third Bank. Contact her at 216-274-5633 or e-mail joanne.hindel@53.com.
to become quite com(financial) power of plex,” said Joseph M. attorney, health care Mentrek of Meaden & power of attorney and a Moore. “So even if you living will (if desired). already have an estate plan, More complex family or it is imperative that you financial situations may revisit that plan to ensure require the use of a trust that it remains relevant.” or series of trusts to effecJust like an annual visit JOSEPH tively accomplish your to your physician, a peri- MENTREK goals. An estate plan odic review of your estate checkup involves a thorplan can either reinforce that all ough review of all of these docuis well, or it can uncover the need ments and determining whether for additional attention to return the plan matches your wishes. your plan to a healthy state. In addition to the implemenA basic estate plan should include tation or review of your docua valid will, durable general ments, your estate plan checkup
should look at the effect of related issues such as the desirability of life insurance, disability or longterm care insurance, as well as the impact of pre-nuptial or buysell agreements, or other documents that affect your assets. The uncertainty regarding federal estate tax laws makes matters even more challenging. And in an election year, it is anyone’s guess as to what, if any, action Congress will take. Many older plans may not have been drafted with this veritable roller coaster in mind. Consequently, the terms of your
existing plan may be open to interpretations that could lead to a vastly different result from what you originally anticipated. There may never be a better time to schedule a checkup with your planner. The time you spend will give you peace of mind, knowing that your financial affairs are in order and that you have adequately and appropriately provided for your family. ■
Joseph Mentrek is vice president with Meaden & Moore Financial Services. Contact him at 216-928-5343.
THE ESTATE PLANNING COUNCIL OF CLEVELAND President Radd L. Riebe Tanzie D. Adams Kelly G. Adelman Charles F. Adler, III Richard A. Ahrens Thomas D. Anderson Graham T. Andrews Oakley V. Andrews Gordon A. Anhold Gary S. Archdeacon Kemper D. Arnold Rosanne J. Aumiller James S. Aussem P. Thomas Austin Charles J. Avarello Molly Balunek Peter Balunek Alexander D. Barclay Lawrence C. Barrett Russell Bauman Stephen Baumgarten Edward J. Bell Michael D. Benson Gina Marie Bevack Mohammed J. Bidar Gary B. Bilchik John J. Bindas James A. Blue Alane Boffa Jason Bogniard Daniel L. Bonder Christ Boukis Laura Bozell Caprice H. Bragg Herbert L. Braverman Christopher P. Bray James R. Bright Susan Brooks Don P. Brown C. Richard Brubaker Robert M. Brucken Armond D. Budish Martin J. Burke, Jr. Eileen M. Burkhart J. Donald Cairns Peter H. Calfee Carl Camillo Nancy H. Canary William G. Caster Sal A. Catalano James R. Chriszt Trevor R. Chuna Mark A. Ciulla R. Michael Cole Warren Coleman Andrew R. Connors Jeffrey P. Consolo David E. Cook James I. W. Corcoran Heather A. Cornell Christy Corrao Greg S. Cowan Steven Cox Thomas H. Craft Jean M. Cullen M. Patricia Culler Rand M. Curtiss Cheryl A. D'Amico Jason S. Damicone Stephen M. Darlington Doris A. Seifert Day Holly N. Denham Rebecca Dent Thomas A. DeWerth Carina S. Diamond David S. Dickenson, II James G. Dickinson Gary L. Dinner
Vice President Lisa H. Michel
Secretary Marie L. Monago
Jeannemarie DiPadova Nick DiSanto Lynda Doland Kara Downing Timothy Doyle Emily A. Drake William A. Duncan James R. Dunn Catherine S. Eclavea Howard B. Edelstein Elaine Beth Eisner Michael E. Ernewein Patrick J. Ertle Christopher M. Essig Heather R. Ettinger Susan M. Evans Darren A. Ewaska Frank Fantozzi Charles E. Federanich William C. Ferry J. Paul Fidler Julie A. Fischer Mary Kay Flaherty Robert E. Fleck Kimberly A. Florcosky Robert B. Ford Judson Forner Kevin J. Forney Patricia L. Fries William H. Fulton Naomi D. Ganoe Beverly Gans Stacey M. Gardella Stephen H. Gariepy Rao K. Garuda Richard Gary James E. Gaydosh Christopher Geiss Thomas M. Genco Arthur E. Gibbs, III Thomas C. Gilchrist Stephanie M. Glavinos Catherine Klima Gletherow Ronald J. Gogul James A. Goldsmith Susan S. Goldstein Tom S. Goodman Scott Goyetche Alexandra Gray Karen Greco Marianne Grega Sally Gries Nancy Hancock Griffith Charles M. Grimm Alan Gross James P. Gruber Timothy R. Haber Patrick A. Hammer Ronald F. Hanson Dana G. Hastings Douglas R. Hastings Lawrence H. Hatch Robert A. Hauptman Janet W. Havener Albert G. Hehr, III Theodore N. Hellmuth Kimberly Heman James M. Henretta James R. Hickey Mark W. Hicks Jean M. Hillman Joanne Hindel Kenneth G. Hochman Mark L. Hoffman Doris Hogan Ronald D. Holman Harold L. Hom
Treasurer Beth M. Korth
Robert S. Horbaly James M. Horkey Brent R. Horvath Michael J. Horvitz Stuart M. Horwitz George A. Jacobs Paula Jagelewski Christopher P. Jakyma Barbara Bellin Janovitz Robert B. Jensen Theodore T. Jones James O. Judd Matthew F. Kadish Stephen L. Kadish Ronald L. Kahn Joseph W. Kampman Karen J. Kannenberg Amy A. Kapostasy Kimon P. Karas William E. Karnatz, Sr. William E. Karnatz, Jr. Bernard L. Karr Howard Kass Edmund G. Kauntz Theresa M. Kean John D. Kedzior Michele Keith Lesley Keller Lisa M. Kerr Veena Khanna Dorothea J. Kingsbury Richard B. Kiplinger Raymond G. Klinc Paul S. Klug Victor G. Kmetich Erik R. Kneip Daniel R. Kohler James R. Komos Thomas H. Konkoly William H. Koptis Harvey Kotler Roy A. Krall Frank C. Krasovec, Jr. Peter G. Kratt Eugene A. Kratus Thomas W. Krause Bruce A. Kretch James B. Krost Deviani Kuhar Craig A. Kukla Thomas J. LaFond William P. Lange Gary E. Lanzen Donald Laubacher Daniel J. Lauletta Herbert B. Levine Wendy S. Lewis Keith M. Lichtcsien James Lineweaver David F. Long Ted S. Lorenzen Sandra C. Lucas Charles S. Lurie Robert M. Lustig Matthew J. D. Lynch James M. Mackey David S. Maher Stanley J. Majkrzak Laura Malone Karen T. Manning Wentworth J. Marshall, Jr. Melissa L. Marvin Douglas Mathey Michael W. Matile Mark J. McCandless Nancy McCann Karen M. McCarthy
Crain’s Cleveland Business Custom Publishing
Program Chair Jennifer A. Savage Larry E. McCoy Daniel J. McGuire Joseph M. Mentrek Mark A. Mihalik Lawrence Mihevic Charles M. Miller Richard S. Milligan William M. Mills Daniel F. Miltner Wayne D. Minich Ginger F. Mlakar M. Elizabeth Monihan Michael J. Monroe Kenneth R. Morgan Philip G. Moshier Susan C. Murphy Hoyt C. Murray Norman T. Musial Christine Myers Jodi Marie Nead Lisa Wheeler Neely Robert Nemeth Michael T. Novak Stephen M. Nowak Anthony J. Nuccio Eric A. Nye Michael J. O'Brien Lacie L. O'Daire Linda M. Olejko Lauren Anne Olsen Leslie A. O'Malley Charles J. O'Toole Jodi L. Penwell Michael D. Pepe Dominic V. Perry Alex S. Petrus Craig S. Petti Daniel W. Phillips Thomas Pillari Gregory M. Pinter John W. Pinter Douglas A. Piper Candace M. Pollock Mary Ellen Potter Douglas Price Maria E. Quinn Susan Racey Jeffrey H. Reitzes Linda M. Rich R. Andrew Richner Elton H. Riemer Kathleen K. Riley Michael G. Riley Frank M. Rizzo Lisa Roberts-Mamone Kenneth L. Rogat James D. Roseman Carrie A. Rosko Edmund W. Rothschild Larry Rothstein Rennie C. Rutman Patrick J. Saccogna Robert Sanders Ronald S. Schickler Bradley Schlang Dennis F. Schwartz Vassie Scott, Jr. June A. Seech John S. Seich Sally Sharaba Andrea M. Shea Stanley E. Shearer John F. Shelley Lea R. Sheptak Nick Shofar Roger L. Shumaker Dennis J. Siciliano
Immediate Past President Erica E. McGregor Scott C. Silverman Sandra M. Skocir Mark A. Skvoretz Michael J. Sliman John M. Slivka Martha B. Sluka N. Lindsey Smith Cristin Snodgrass Michael L. Solomon Michael T. Sommerfeld Richard T. Spotz, Jr. William L Spring M. Randal Stancik Cindy L. Steeb Kimberly Stein Laurie G. Steiner Saul Stephens E. Roger Stewart John M. Stickney Thomas M. Stickney Robin R. Stiller Robert H. Stock Thomas B. Strauchon John E. Sullivan, III Linda DelaCourt Summers Scott Swartz Joseph N. Swiderski Natalie Bell Takacs Yeshwant K. Tamaskar John R. Telich, Sr. Mark M. Tepper Barbara Ann Theofilos Donald A. Thompson Donna Thrane Philip Tobin Thomas L. Tobin Eric Tolbert Floyd A. Trouten, III Mark A. Trubiano John R. Tullio, Jr. Diann Vajskop Robert A. Valente Missia H. Vaselaney Joseph Frank Verciglio Catherine Veres Anthony Viola Mary Eileen Vitale Michael A. Walczak Kimberly A. K. Walrod Robert W. Wasacz Neil R. Waxman Ronald F. Wayne Michael L. Wear Stephen D. Webster David G. Weibel Paul A. Weick Jeffry L. Weiler Richard Weinberg Katherine E. Wensink Elizabeth Wettach-Ganocy Marcia J. Wexberg Terrence B. Whalen Sharon Kai Whitacre Geoffrey B.C. Williams LeeDaun Williams Teresa M. Wisniewski Nelson J. Wittenmyer Matthew D. Wojtowicz Alan E. Yanowitz James D. Yurman Jeffrey M. Zabor Michael J. Zeleznik David M. Zolt Jack Zugay Shawn D. Zurat Gary A. Zwick Donald F. Zwilling