When writing a will and estate plan, there are many legal terms you need to know throughout the process. My clients routinely ask about these terms and the difference between them. Two common words that can mean drastically different things for your estate are “testate” and “intestate.” Understanding these terms will help you foresee the probate process.
Charitable giving could blossom after tax law changes
Many have worried that changes to tax law that took place as part of the Tax Cuts and Jobs Act of 2017 could potentially reduce the amount of charitable giving that takes place as part of will bequests and the estate planning process. Especially for people without living children or with a high net worth, using one's estate to provide philanthropic legacies can be a meaningful gift that reflects an individual's social priorities. However, over the years, the exemption of charitable bequests from estate and inheritance taxes has helped to inspire wealthy donors to make gifts to charity.
Staying healthy into old age
According to the Genworth Cost of Cary Survey, the median price of a nursing home is $8,000 a month. Unfortunately, an average social security check is only $2,000 a month. The U.S. Department of Health and Human Services says that 70 percent of Americans will require long-term care at some time. With good planning, however, Ohio seniors may be able to cover the cost of care without sacrificing quality.
When trusts are better for adult children
When creating an estate plan, an Ohio parent may want to consider placing assets in a trust for their adult children. While it's not uncommon for parents to do this when their kids are minors, it's also a smart idea for adult children who may not manage assets responsibly. Many adults simply lack the necessary knowledge to manage large assets.
Common mistakes in preparing a living trust
There are two major errors that a person in Ohio creating a living trust should watch out for. One is failing to fund the trust, and the other is failing to involve successor trustees.
What is non-probate?
Upon your passing, your estate will go into a system called “probate.” Everything is subject to your will and the applicable laws for its final disposition. The process can be long and complicated, especially if you have a lot of assets.
