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Estate planning across multiple states

On Behalf of | Oct 24, 2016 | Firm News, Trusts |

Ohio residents who live in more than one state throughout the year should keep this in mind when they are making their estate plan. Generally, people have official residence in only one state even if they spend part of the year in another one. They whether either state where they spend their time has an estate tax. There is a federal estate tax, but in 2016, there is an exemption of $5.45 million. There might also be some states, like Florida, that do not have an estate tax but have other taxes when a person dies.

Another consideration is whether people own property in multiple states. If this is the case, they might want to consider placing their property into a trust. Otherwise, heirs will have to wait for the probate process to conclude in multiple states before they can claim their inheritance.

People might also want to make sure that they have a durable power of attorney in place for every state where they own property, including bank accounts. This allows someone to manage that property if the principal becomes incapacitated.

Estate planning can be a complex task even if a person only lives in one state, but having a sound plan can mean taking stress off family members and securing their futures. There are a number of vehicles for passing assets on to beneficiaries besides wills that an attorney can explain. Trusts can help pay for future educations or can distribute money to beneficiaries only at specific stages in their lives. Other types of trusts can benefit beneficiaries while also making charitable donations or can care for relatives with special needs without affecting any government benefits that relative might be entitled to receive.

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