Ohio residents who are creating an estate plan may want to consider the role that trusts might play. Trusts can be helpful in a variety of situations and at many different income levels. There are many different types of trusts as well. For example, there are revocable and irrevocable trusts. The former can be altered during a person's lifetime while the latter cannot. Both can help provide estate tax protection, but an irrevocable trust can also protect assets from creditors and lawsuits.
Why Ohio residents should avoid DIY probate
While a DIY project may be less costly than having a professional do it, it may not be the best way to go about it. Probate is generally one of those projects that an individual may want to leave to a professional. This is because there are up to 130 different statutes to learn and understand, multiple pleadings and legal documents to complete and high possibilities of being liable to both heirs and creditors.
What is a Miller Trust? Do I need one?
If you or a loved one needs Medicaid services in Ohio, new changes to the law can affect your eligibility. As of July 2016, Ohio residents earning over a monthly income cap must create a Miller Trust to continue receiving needed services.
Using a trust to protect an inheritance
Not everyone has the ability to manage their finances well. Some Ohio parents may have concerns about whether their children are responsible enough to handle a significant inheritance. Even people who usually make wise financial choices can make mistakes when they suddenly acquire a large sum of money. However, there are financial vehicles that parents can use to ensure that their minor and adult children will not waste away a legacy.
Using the QPRT to reduce estate tax
While the federal estate tax exemption is high enough that few people need to be concerned about it, others worry that the exemption, which in 2016 is $5.45 million for an individual, might one day be reduced or even eliminated. Ohio homeowners who are in the latter group might want to consider creating a qualified personal residence trust.
