The first day of Spring in 2014 provided a great opportunity for members of the Portage Chamber of Commerce to look forward in their lives with a presentation from Attorney Scott McClure from Rhame & Elwood. McClure touched on a number of topics in regards to estate planning and encouraged those in attendance to be proactive when it comes to caring for their assets.
"The main goal for this luncheon is to not put everybody to sleep," joked McClure. “This presentation is just a beginning, a primer on estate planning.”
After lunch catered by Topperz, McClure started his presentation by breaking down key elements of estate planning -- Power of Attorney, Living Will, and Last Will and Testament. Estate planning is key for those who plan to pass on their assets because the planning acts as preventative maintenance in case of death or incompetence.
Emphasizing the importance of establishing powers of attorney and healthcare representatives, McClure insisted attendees each work now to ensure that their finances and health care options are with a trustworthy individual, just in case of the worst case scenario. “You want to get one done, put it in a drawer and hope it gets dusty,” he explained. “That’s its purpose.”
He then explained the benefits of securing wills and trusts, emphasizing that these documents get set in place in case of tragedy.
McClure then spent some time dispelling some myths on establishing trusts due to changes in estate taxes. He explained that, unless you have more than $5.34 million in assets upon death, establishing a trust for your assets on the basis of avoiding taxes may not pay off, as $5.34 million is the threshold for federal estate tax. Indiana does not currently have an estate tax, he also noted.
The process of quitclaim deeds to children in terms of estate planning were then discussed, with McClure advising against using the process unless special circumstances were met. There are several complications that may arise using quitclaims, some of which can’t be foreseen.
“As easy as it is to sign and file a quitclaim deed , it’s exceedingly more difficult undo one,” he explained. “It's kind of like getting married. It’s easy to get married, but it's difficult to get divorced.”
Because it is difficult to consider all of the possibilities the future in estate planning, McClure suggested coming up with a plan, and then having solid and consistent communication with any and all heirs to avoid future confusion when it comes to dividing an estate.
“Communication with the heirs is probably the most underrated part of the whole process,” he explained.
Informing chamber members on these important topics is just another example of the team at Rhame and Elwood serving the Portage community.
“Obviously Rhame and Elwood has been a member of the Chamber for years, we’re deeply involved in the community through organizations like the YMCA,” explained McClure. “John Rhame, Ken Elwood or myself at different times have all served on the board or been Past Presidents. We’re deeply involved in the community and will continue to be.”
For more information the legal services provided by Rhame & Elwood, click here. Click here for more information on the Portage Chamber of Commerce. The Portage Chamber will be hosting the 2014 Portage Community Business Night on April 24, 2014, a great opportunity to connect your business or organization to the Portage Community. Click here for more information on the event.
Click here for more photos from the luncheon, including the 30 Seconds of Fame!