Posts Tagged ‘Probate Court’

Did Prince Forfeit Control Over His Multimillion Dollar Estate?

Wednesday, April 27th, 2016

Learn How A Will Protects Your Fortune After Death

Did Prince Have A Will | Why A Will Matters | Ohio CPA Firm

PHOTO CREDIT: www.Billboard.com
According to Prince’s sister, Tyka Nelson, the music legend neglected to draw up a will before he died. Regardless of how large (or how small) your fortune is, estate planning is essential and drawing up a will is a critical component of the plan – one you literally can’t afford to ignore. Keep reading to find out why a will is one of the most important documents you will ever have drawn up.

While driving my sons to school this morning, we heard on the radio that, according to his sister, Tyka Nelson, music legend Prince died without having a will in place. This means, if the reports are true, Prince’s estate will be managed by a Minnesota probate court and will likely come with a large tax bill.

Naturally, this story has already generated national attention concerning the future of Prince’s multimillion dollar estate. What is certain, however, is that if Prince did die without having a will, his sister and five other half-siblings would stand to acquire a significant inheritance – after taxes, of course.

Read Also: You Can Still Have The Final Say After Death

Who Will Inherit Your Fortune?

I know that my sons truly love each other but, like most siblings, they fight like cats and dogs. So I decided to use the drive to school as a teachable moment.

Because both of my sons dream of becoming professional sports stars (let them dream), I advised them to heed the warning tucked within the morning’s news report. If you don’t want your brother to inherit your fortune when you pass away, you need to have a will in place that will determine where your millions go. Otherwise, the state will give everything to your next of kin.

Still Not Sure If A Will Is Necessary?

Regardless of how large (or how small) your fortune is, estate planning is essential and drawing up a will is a critical component of the plan – one you literally can’t afford to ignore. Among the many benefits of establishing a will, this document will:

  • Give you the final say over how your finances will be distributed.
  • Establish who will be legally responsible for caring for your minor children.
  • Help you avoid a drawn-out probate process.
  • Provide you with an opportunity to minimize your tax burden.
  • Let you determine who will be responsible for managing the affairs of your estate.

Lesson Learned?

You don’t have to be a teacher to pass along a few solid words of wisdom to your children. You just need seize teachable moments when they present themselves – even if all you can do is begin laying the groundwork for an even bigger lesson. Here’s what we accomplished on this morning’s drive:

  • I’m certain my boys now agree on one thing – that when they become professional sports stars (or whatever profession they choose), a will is a must have.
  • They now know who Prince is and that he acquired a lot of money over the course of his career.
  • Hopefully, they now have a basic understanding of the importance of a will. (I’m probably going to have to have a follow-up conversation about this one.)

Eh, I tried.

Would you like to learn more about estate planning and how to ensure your assets are distributed in accordance with your wishes after you die? Listen to episode 6 of unsuitable on Rea Radio with Dave McCarthy – The Grim Reaper Is Coming And He Wants Your Money. You can also email Rea & Associates to learn more.

By Inez Bowie, CPA, CSEP (Marietta office)

The following articles offer some more great advice about the importance of drawing up a will.

How Do You Value Property For An Estate In Ohio?

Why Should Your Digital Assets Be Part Of Your Estate Plan?

What Tax Liabilities Accompany Inherited Real Estate?

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You Can Still Have The Final Say After Death

Friday, October 23rd, 2015
Estate Planning - Ohio CPA Firm

It doesn’t matter if you have a lot of assets to pass on or very few, estate planning is one of the best things you can do for yourself and for those you love.

Life is full of enjoyable experiences. Spending time with family and friends, hiking through the woods, spending the afternoon on the lake, immersing yourself in a hobby – these are the moments we live for. What if you could give yourself the opportunity to make those moments more enjoyable? Would you take that opportunity?

Click To Listen To Episode 6 of Unsuitable on Rea Radio: The Grim Reaper Is Coming … And He Wants Your Money

Every time you avoid the conversation about estate planning you miss out on a chance to make this period of your life even more enjoyable – for you, and for your loved ones. Once you have made your plans with regard to what you want to happen after your death, those thoughts are no longer in the back of your mind. They are decided and you can truly enjoy the moment with your friends and family.

Three Things Everybody Should Know About Estate Planning

  1. Estate planning is for everybody. Estate planning isn’t just dependent on your assets; it’s about identifying what you want to happen after you pass away. Who do you want to take care of your children, for example, and do you want that person to be financially responsible for them as well – they don’t necessarily have to be the same people. When you take control of your estate planning, you are effectively helping to ease the burden that is already felt by your loved ones. Not only will you have already made the difficult decisions, but you can do so in a way that provides additional benefits for your heirs while securing your legacy.
  2. If you have an IRA, don’t forget to name your contingent beneficiary.  It’s common to have an IRA through your employer, but oftentimes naming the IRA’s contingent beneficiary is forgotten. Usually it’s your spouse, but if your spouse has already passed away, you need to make sure to name a new contingent beneficiary. This is just one simple way to plan ahead, but it’s frequently overlooked.
  3. Probate Court isn’t always a bad thing. You hear people say things like: “You want to avoid probate at all costs.” But that’s not necessarily the case. For example, imagine that you’ve made plans to have all your assets go directly to your three children – avoiding the probate process altogether. When it comes time to pay for your funeral, you would hope that your three children would split the cost three ways without much ado. But, without Probate Court to mediate the situation, one child could decide that they don’t want to pay their portion, which would leave the other two children with the bill. When you bring probate into the equation, you help ensure that there is enough money available to cover these necessary funeral expenses.

Find Time To Enjoy More

It doesn’t matter if you have a lot of assets to pass on or very few, estate planning is one of the best things you can do for yourself and for those you love. The sooner you start planning yours, the sooner you can get back to enjoying the moments that truly make life worth living.

By Dave McCarthy, CPA, CSEP (Medina office)

Dave McCarthy Discusses Estate Planning during Unsuitable on Rea RadioLearn more about the importance of estate planning. Listen to “The Grim Reaper Is Coming … And He Wants Your Money” podcast on Unsuitable on Rea Radio at www.reacpa.com/podcast or on iTunes or SoundCloud.

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