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Not long ago, an official looking letter arrived addressed to my deceased father. Inside was a message from “Attorney Patterson” stating that a man named Nicholas Moore had died in Canada. No heirs. No next of kin. But, conveniently, a $10 million life insurance policy just waiting to be claimed.

The letter was vague on details and how my family was related to Nicholas Moore was even more ambiguous. But “Mr. Patterson’s” letter was optimistic, and the proposition was simple: if I agreed to pose as a relative, we’d split the payout 50/50. It was a win/win proposition, we would both receive half of the unclaimed life insurance policy.

My branch of the Moore family tree is pretty small so I was quite sure I was not related to Nicholas Moore of Ontario, Canada.  Furthermore, I am not in the habit of replying to Canadian estate lawyers who contact me out of the blue regarding long lost relatives. But curiosity got the better of me. I sent an email to “Attorney Patterson” — not because I believed any part of the story, but because I wanted to see how this scam was played.

The email response did not disappoint. I was assured that this was all legitimate, there was no risk to me, and my “partner” would do all the work. All that was required of me was my full name, address, occupation, marital status, and age.  Of course, it was very important that I keep this all a secret. 

I knew what was coming in the next email - requests for funds to pay for filing fees, expenses and other costs required to collect the $10 million insurance policy, so I ended my email exchange with “Mr. Patterson”.  Still, this scam did get me thinking about some real issues with life insurance policies.

How Life Insurance Policies Really Work

In the real world, life insurance is not handled by sketchy attorneys with gmail addresses probably working from a dimly lit basement. Life insurance companies are a suspicious group, and rightly so.  Before any money goes out, they require two things: proof that the insured has indeed passed away, and confirmation that the person asking for the money is the one actually listed as the beneficiary. That’s it, no exceptions.  Ask anyone who has made a death benefit claim to a life insurance company, they can attest that it is a deliberate, formal process and the insurance company will not send funds until all I’s are dotted and T’s are crossed.  “Attorney Patterson” will be disappointed that his scam will not work.

Due to the inflexible nature of life insurance policies, it is very important to make sure that each life insurance policy has up-to-date beneficiaries.  Parents who forgot to add their second child to their life insurance policy would be disappointed to find that that their first child will receive the entire payout from the policy.  Life insurance companies will not make exceptions for “I meant to” or “I should have”.  Make sure that every person you want to receive the death benefit is identified as a beneficiary.

Life insurance policies will typically allow for contingent beneficiaries.  A contingent beneficiary will receive the death benefit if the primary beneficiary dies before the insured dies and the policy pays out.  It is important to have a contingent beneficiary for each primary beneficiary.

If there are no beneficiaries or all primary and contingent beneficiaries have died, the death benefit will be paid to the insured’s estate.  Then, the will or laws of the state will direct how the death benefit proceeds are distributed.  The death benefit proceeds will be treated just like any other asset in the estate.  The probate process will require verification of all heirs of the estate before the funds are released.  “Attorney Patterson” will be further disappointed to learn that probate court is also scam-resistant.

 Useful Tips for Life Insurance Policy

The following tips may not be as exciting as discovering you are the long-lost heir of a $10 million insurance policy, but they are useful for any life insurance policies you may own:

• Locate the policy and check the primary and contingent beneficiaries. Are they current? Alive? People you still like?  If you cannot find the policy, contact the life insurance company or your insurance/financial advisor.  It is relatively easy to add or change beneficiaries.
• Determine the cash value (if any), death benefit, premium and any other relevant information you may need for the policy.  Do these numbers still match the goals of your estate plan?
• Tell someone you have a life insurance policy. This can be a spouse, child, executor, or trusted advisor. Life insurance companies do not contact you to start a death benefit claim, someone must contact them.  There are life insurance policies that never get claimed because no one knows to file a claim.

A Scam’s Silver Lining

Even with scams, there is something we can learn.  “Attorney Patterson’s” letter reminds us to keep our life insurance policies up-to-date so we don’t have to search across international borders for heirs.  If you haven’t reviewed your life insurance policy for a few years, pull out the policy and review its terms and beneficiaries.  If you can’t find the policy or are confused about some of its terms, contact your insurance agent or financial advisor.  They will be able to explain your policy to you in a brief conversation.  Keeping your life insurance policy current and accurate will make life much simpler for the beneficiaries of your policy.

Unidentified drones flying over property have raised many concerns recently, but new laws in Ohio may ease those concerns. The new laws aim to enhance safety, protect privacy, and align state laws with federal regulations for “unmanned aerial vehicles” (UAVs), or “drones.” Passed late last year as H.B. 77 and effective on April 9, 2025, the new laws amend Ohio’s aircraft safety laws to prohibit operating UAVs in certain ways and also address local government use and regulations for UAVs.

​Legal definition of UAV

A UAV, according to the new law, is commonly referred to as a drone and is  a vehicle that does not carry a human operator, is operated without the possibility of direct human intervention from within or on the vehicle, uses aerodynamic forces to provide lift, can fly autonomously or be piloted remotely, and is either expendable or recoverable. The law clarifies that a satellite is not a UAV.

Prohibited drone operations 

The law establishes four prohibited actions by UAV operators in Ohio and sets penalties for violating the prohibitions:

1. Knowing endangerment.  A person shall not operate a UAV “on the land or water or in the air space over this state in a manner that knowingly endangers any person or property or purposely disregards the rights or safety of others.” A violation of this provision can result in a $500 fine and/or up to six months of imprisonment. ​
2. Interference with law enforcement and emergency responders.  The law prohibits operating a drone in a way that disrupts, interrupts, or impairs the operations or activities of law enforcement, fire department, or emergency medical services.  Criminal misdemeanor or felony charges are possible, depending on whether the interference was committed knowingly or the result of recklessness.
3. Operation over critical facilities.  Two new provisions apply to “critical facilities,” which includes hospitals that receive air ambulance services; military installations; commercial distribution centers; courts, jails, and prisons; and police stations, sheriff’s offices, state highway patrol stations, and premises controlled by the bureau of criminal investigation.  The law prohibits a person from operating a drone to photograph, record, or loiter over or near a critical facility in two situations.  The first situation is operating a drone with the purpose of tampering with or destroying the facility and the second is operating a drone to further another criminal offense involving harm to a person.  Violations of these laws can lead to criminal misdemeanor and felony charges, depending on the operator’s intent and whether the action is a repeated violation.
4. Compliance with federal law.  The new law ties into federal law and regulations that require registration of UAVs and licensing for certain UAV operators.  Ohio law prohibits a person from operating a UAV in Ohio if those federal laws or FAA regulations would prohibit the operation, which allows the state to enforce the federal law requirements.

Local governments and drones

Another provision of the new law provides authority to municipalities, counties, townships, and park districts.  These local governments can now adopt local ordinances or regulations for UAVs in two situations: for hobby or recreational uses of drones above a park or other public property and for the use and operation of drones by the local government.

What do the new laws mean for agriculture?  The laws place new responsibilities on drone operators to use drones responsibly and for legitimate purposes while providing remedies for those whose safety or privacy are endangered by drone operations.  In those situations, a person should contact local law enforcement. Federal law requires registration and “Remote ID” tracking technology for UAVs, which can allow identification of the drone operator from an on-the-ground transmitter.  With the new laws, there are now legal options for pursuing enforcement against bad actors.  Local governments can also now enact additional laws to ensure safe drone operation in their public areas. 

What the laws don’t do is authorize the “shooting down” of suspicious drones. It is a federal crime to shoot or intentionally harm a drone, even if the drone is flying over someone’s private property. Shooting a drone from the sky can also create safety risks and potential civil liability. Read more about options for dealing with suspicious drone activity in our  previous blog post.

Information about House Bill 77 is available on the Ohio General Assembly’s website.

We're preparing for another edition of our monthly webinar, Farm Office Live, on Friday, April 25 at 10 a.m.  Our featured guest this month is Dr. Margaret Jodlowski, Asst. Professor in the Dept. of Agricultural Environmental and Development Economics, who will discuss farm labor issues with us.  Our remaining agenda features the Farm Office team addressing these topics:

• Strategies for Developing the Next Leader of Your Farm Operation - David Marrison, Farm Management Field Specialist
• Crop Profit Outlook - Barry Ward, Production Business Management Leader
• Farm Business Analysis Update - Clint Schroeder, Farm Business Analysis Program Manager
• State and Federal Legislative Update - Peggy Hall, Agricultural & Resource Law Program Director
• New Laws: Paystub Protection Act and Operation of Drones - Jeff Lewis, Agricultural & Resource Law/Tax Schools Attorney
• Tax Update: Are Avian Flu Indemnifications Exempt? - Barry Ward and Jeff Lewis
• Upcoming Events and Deadlines - David Marrison

Join in for this free webinar by registering at farmoffice.osu.edu/farmofficelive, where replays of previous webinars are also available. We hope to see you there!

I recently received this question from a farm family.  It’s one of the most common — and important — questions farm families ask when thinking about the future.  Long-term care (LTC) is expensive, unpredictable, and often not covered by programs like Medicare. For farmers who’ve spent a lifetime building an operation and want to pass it on, the rising costs of LTC present a real financial risk to the land, the farm business, and the legacy.  The following is a brief discussion on LTC costs and strategies.

The Growing Risk of Long-Term Care

Once upon a time, estate taxes were the biggest financial threat to the family farm. Today, that’s no longer the case. With higher federal estate tax exemptions, few farms owe estate taxes anymore. The real financial threat now? LTC costs.

LTC includes a wide range of services — from home-based personal care to skilled nursing facility stays — and most of it isn’t covered by Medicare. These services help people with chronic illness, disability, or aging-related conditions. For example, assistance with dressing, bathing, eating, or even just getting around. Care might start at home and eventually move to a facility. Costs vary by setting and service, but they add up quickly.

Here are a few important facts to help understand the implications of LTC on farming operations:

• 69% of people over 65 will need some form of LTC.
• Average LTC lasts 3 about years, with women needing slightly more (3.7 years) than men (2.2 years).
• 20% of people will need care for more than 5 years — these are the “outliers” most likely to face LTC costs that can jeopardize the farm.
• In Ohio, a year in a nursing home will cost around $100,000 or more.

For a farm couple, those numbers can double — and the risk of outliving income and savings increases.

Can the Farm Handle It?

If you’re wondering whether your operation could survive those costs, it depends on a few things:

• Do you have income (from Social Security, retirement accounts, rent, etc.) that could help cover LTC?
• Do you have non-farm assets, like savings or investments, to use before touching the farm?
• Would you be considered an “outlier”, needing care for many years — and would your current planning handle that?

In most cases, a farm family can survive average LTC costs, around $180,000, without needing to sell land and other critical assets. But it’s the outliers — the 5-to-10-year nursing home stays — that pose the greatest risk. That’s where planning becomes essential.

Planning Ahead: Options for Managing LTC Risk

There’s no one-size-fits-all solution. But there are strategies that can help reduce LTC risks and protect the farm. Here's a breakdown of the most common options:

1. Do Nothing

For some, doing nothing is a valid strategy — if you have enough income and assets to cover even the worst-case LTC costs without risking the farm. But that’s rare. Most families should at least consider other options.

2. Gifting Assets

Giving land or assets to heirs (usually children) more than five years before applying for Medicaid can protect those assets from LTC costs. But gifting comes with trade-offs:

• You lose control over the assets.
• The heir receives your original tax basis, which could trigger big capital gains taxes later.
• If you need LTC during the five-year look-back period, the gift can cause Medicaid penalties.

Gifting can be effective — but it needs to be done carefully, and early.

3. Irrevocable Trusts

An irrevocable trust can protect assets while allowing some flexibility. You give up ownership and control, but the trust (managed by a trustee) holds the asset for your beneficiaries. If structured correctly and established early enough, the trust assets are shielded from LTC costs — and sometimes still qualify for a stepped-up tax basis at death.

But be warned: these trusts are complex, expensive to set up, and must be carefully maintained.

4. Wait-and-See Approach

This strategy avoids doing anything upfront but relies on having enough income and savings to cover five years of LTC if needed. If care becomes necessary, assets are transferred and the clock starts. The gamble? If you can’t make it through the five-year penalty period, your assets might still be at risk.

5. Self-Insurance

Some families choose to earmark a piece of the operation (a less productive farm, a savings account, etc.) to pay for care if needed. It gives flexibility and control, but it also requires discipline — and can lead to one spouse living more frugally out of fear the money won’t last.

6. Long-Term Care Insurance

LTC insurance can cover all or part of the costs — and newer “hybrid” policies can include a life insurance component so the money isn’t lost if care isn’t needed. But these policies can be expensive and hard to qualify for, especially if you already have health issues. Still, they’re worth exploring with a good advisor.

So, What’s the Best Strategy?

The truth is, there’s no “best” option — just the best fit for your family’s goals, resources, health, and timing. Some families will mix and match strategies. Others will lean heavily on one. The important part is that you understand your risk and make intentional decisions, not default to inaction.

Talk to an Attorney and Plan Ahead

LTC is complicated. Medicaid rules, tax law, trusts, and gifting penalties are full of pitfalls. One wrong move — even with good intentions — can backfire. That’s why it’s so important to work with an attorney who understands long-term care planning and farm operations.  Also, start the conversation now. Don’t wait until a crisis hits. Planning ahead can make all the difference — for your peace of mind today, and for your farm’s future tomorrow.

For more information on LTC and the risks to farms, see Long-Term Care and the Farm, a bulletin available at farmoffice.osu.edu.