IRAs can be bequeathed to heirs who can use the minimum distributions as they wish. However, IRA account holders in Ohio may want to use a trust as a tool to safeguard assets from beneficiaries who may have financial or behavioral issues. According to one financial advisor, a trust should be used by anyone with a sizable IRA if there are doubts about how the heir would handle the money.
What to know about probate
After an individual passes, that person's estate may need to go through probate. In Ohio, estates worth $35,000 or less may be relieved from some of the administrative requirements. That number increases to $100,000 if a surviving spouse inherits all of a deceased person's assets. Probate is necessary as it allows an executor to protect and distribute assets to the intended beneficiaries.
Things to review in an estate plan
Ohio residents who have an estate plan should review the documents regularly. In going over a will or a trust, they should take into account whether changes in tax law might affect the estate plan. Changes in assets or in the family could mean a change is needed as well. People should also consider whether their choices for executor and trustees are still appropriate.
How a second marriage might change an estate plan
People in Ohio who are remarrying might want to consider how they should alter their estate plans. If it is not a first marriage for the new spouse, the first step should be to avoid entangling finances if the new spouse also has financial ties to a previous partner. Because creditors are bound by divorce agreements, commingling finances could jeopardize joint accounts.
