An Ounce of Prevention:

1. An Ounce of Prevention: Laying Your Estate Planning Foundation Presented by: INSERT AGENT NAME/DESIGNATION(S) The Ohio National Life Insurance Company Ohio National Life Assurance Corporation Ohio National Equities, Inc. Member NASD/SIPC

2. The Ohio National Life Insurance Company and Ohio National Life Assurance Corporation issue a variety of life insurance and annuity products. Product availability varies by state.

3. All specific legal and tax questions should be referred to your legaland tax advisers Please Be Advised:

4. A series of instructions that defines the handling of your assets and affairs at death or incapacity. YOUalready have an estate plan. What is an Estate Plan?

5. The Estate Planning Process

6. Wills The cornerstone of a well-planned estate. "A man who dies withouta will has lawyers for his heirs.“— Anonymous

7. Will Functions • Control disposition of assets • Choose a personal representative • Designate a legal guardian • Provide for common disaster • Tax-planning opportunities • Disinherit someone

8. Don’t worry: If you die without a will, the state will provide one for you “Free of Charge” Don’t Have a Will? A state mandated will is “free,” but the costs to your heirs could be significant.

9. Typical Intestacy Law Flat dollar amount plus anywhere from 1/3 to all of intestate estate Parents Next of Kin SurvivingSpouse Remaining assets Children Siblings State

10. Disadvantages of Dying Without a Will • Eliminates friends, charities, remote relatives • Special needs ignored • Delays and cost of finding heirs • The law is rigid • Prohibits specific bequests • Tax savings opportunities lost

11. Intestacy Eliminates Tax Savings Opportunities

12. Do-It-Yourself Will Kits • Price range: $8.95-$109 • Designed as “one size fits all” • Inappropriate in most cases “The products we tested would be useful for people who want to leave their estate in its entirety to an heir, with no strings attached.” Wall Street Journal 1-20-04.

13. Example: Chief Justice Warren Burger LAST WILL AND TESTAMENT OF WARREN E. BURGER I hereby make and declare the following to be my last will and testament. 1. My executors will first pay all claims against my estate; 2. The remainder of my estate will be distributed as follows: one-third to my daughter, Margaret Elizabeth Burger Rose, and two-thirds to my son, Wade A. Burger; 3. I designate and appoint as executors of this will, Wade A. Burger and J. Michael Luttig. IN WITNESS WHEREOF, I have hereunto set my hand to this my Last Will and Testament this 9th day of June, 1994. /s/Warren E. Burger We hereby certify that in our presence on the date written above WARREN E. BURGER signed the foregoing instrument and declared it to be his Last Will and Testament and that at this request, in his presence and in the presence of each other, we have signed our names below as witnesses. /s/Nathaniel E. Brady residing at 120 F St., NW, Washington, DC /s/Alice M. Khu residing at 3041 Meeting St., Falls Church, VA Probate delays No executor powers Less for heirs No tax savings Do not attempt to draft your own will. When you die, you will not be around to explain what you intended.

14. Choice of Executor An executor is responsible for collecting assets, paying all debts and final expenses, filing tax returns, appraising assets, distributing assets according to the will, and providing a detailed report to all interested parties, among other things. Choose wisely.

15. How Property Passes at Death Contract • Contracts such as life insurance and annuities pay death benefits to named beneficiaries Deed • Property owned jointly with survivorship rights passes to the joint owner Will • Remaining property is distributed according to the terms of a will Law • In the absence of a will, the remaining property is distributed according to state law

16. “To Probate or Not To Probate…” Advantages • Court supervision • Heirs receive clear title to assets • Fairly streamlined for uncontested estates Disadvantages • Lack of confidentiality • Lack of control • Possible delays • Expenses/fees Probate and administrative costs can range from3 to 10 percent of an estate’s value.

17. At A’s Death Ownership Type Individually owned A A’s Heirs Probate Joint with right of survivorship B A & B No probate Tenants in common A’s Heirs A B Probate for A’s share B

18. Probate Avoidance Techniques • Lifetime gifts • Joint ownership • Contracts with beneficiary designations • “Payable on death” accounts • Trusts

19. Tools for Managing Incapacity • Joint Ownership • Durable General Power of Attorney • Revocable Living Trust • Health Care Proxy • Living Will Requirements vary by state. Work with a qualifiedattorney in your state.

20. Joint Ownership Most Common type of property ownership Advantages • Simple • Common for married couple • Appropriate for small accounts Disadvantages • Account may be attached by co-owner’s creditors • Mismanagement/abuse As an alternative, consider direct deposits & automatic bill payments.

21. Durable General Power of Attorney You Representative Third Party • Empowers representative to act on your behalf • Powers related to: realty, banking, business operations and most financial transactions • Power is “durable” in that it remains in effect should you become mentally incompetent or incapacitated

22. Durable General Power of Attorney Advantages • You pick your representative • Simple and quick • Keeps financial affairs in order during periods of incapacity • Avoids court intervention and publicity Disadvantages • Risk of mismanagement or abuse • Could conflict with health care proxy

23. Revocable Living Trust You Establish trust & transfer ownership of property Trust • You manage the trust • If you become incapacitated, co-trustee assumes trust management • Becomes irrevocable at death

24. Revocable Living Trust Advantages • You manage trust while you are healthy • Co-trustee or successor trustee manages assets during incapacity • Is a “will substitute” (avoids probate) Disadvantages • Lack of follow through • Some assets can’t be held in trust • Legal fees Revocable living trusts are often used by individuals with real estate located in two or more states.

25. Health Care Proxy You Representative Physician • Also called a “durable power of attorney for health care” • Empowers representative to make medical decisions for you • Generally becomes effective when you become mentally incompetent or incapacitated

26. Health Care Proxy Advantages • Covers a variety of medical situations • Only requires incapacity (or temporary unconsciousness) to become effective Disadvantages • Representative must be present to act • Does not cover emergencies • You might not otherwise agree with your representative

27. Living Will You Attending Physician Relative, Friend, Attorney, Family Dr. Delivers Copy of Living Will • Authorizes doctors to discontinue treatment in the event of terminal illness • Upon terminal illness, the will is offered to the attending physician

28. Living Will Advantages • You make future medical decisions now, while you still can • You set the parameters • Removes life-and-death decisions from family Disadvantages • Limited to terminal illnesses • Generally invalid during emergencies Estate planners advocate using both a health care proxy andliving will to fill in all the gaps.

29. What Else is Included in a Living Will? • Specific details about the quality of life sufficient to justify heroic measures • End-of-life requests: • Funeral and burial services • Memorials • Organ donations • Details of religious beliefs Discuss your wishes with all relevant parties including your family, doctor, religious adviser and agents.

30. Gifts to Minors • Outright: • Simple but inappropriate • Trust: • Time delays/complexity/legal fees • Custodianship: • Quick/simple/free

31. Gifts to Minors:Custodianships • Named custodian manages property for recipient’s benefit • Does not require court approval • Custodianship ends when the recipient reaches age 21 (18 in some states) • When custodianship ends, property must be turned over to the recipient, no strings attached Uniform Transfers to Minors Act

32. Life Insurance Planning Income-tax free death benefits: • Debts & final expenses • Income replacement • Mortgage protection • Education funding • Estate tax liquidity • Charitable gifts • Wealth replacement

33. Think Inside the Box Your executor should know the location of your will, safe deposit box and safe deposit box key.

34. Time For a Check-up? • “The value of my assets has changed more than 20 percent over the past two years” • “My health has deteriorated in the past year” • “A child/grandchild has been born” • “A child/grandchild has become handicapped or seriously injured” • “I got married or divorced” • “I recently moved to another state” • “I would like to add a charitable gift” • “I was promoted or changed jobs”

35. You Decide

36. Take The Next Step Today Take care of yourself and the people who mean the most to you.