People in Ohio who create a trust as part of an estate plan should make sure that they also fund the trust. Without placing assets in the trust, the trust document itself is like an empty container.
With a standard trust, there is an eventual limit to how long funds from an estate can be distributed to beneficiaries. Typically, after the last beneficiary passes, that's it for distributions. For Ohio residents with significant assets looking to make their money live on indefinitely, this goal can be achieved with a dynasty trust. It's an option that may be a more appealing way to address the financial needs of heirs for multiple generations since changes were made to the tax law.
Since the financial crisis of 2008, interest rates have remained very low compared to historical levels. However, rates are now starting to rise with no signs of stopping. As a result, portfolios that have performed well in a low-rate environment will need to adjust strategies going forward. Two tools that are particularly advantageous for Ohio families in the current environment are grantor retained annuity trusts (GRAT) and charitable lead annuity trusts (CLAT).
Parents in Ohio who have children with special needs may be concerned about how they can best provide for their children in the future, especially if they will need to access government benefits as adults. By using a special needs trust, family members can supplement a disabled person's income from government programs without limiting their eligibility for such income. By creating this type of trust, the beneficiary will be able to receive funds from the trust without limiting their access to government benefits.
An Ohio resident who is creating an estate plan may want to work with a team of professionals. This could include an attorney, financial planner, and accountant. Unfortunately, many people think an estate plan and a will are the same thing. However, there are many other components to an estate plan.
Pour-over wills are used with trusts and other estate planning tools as a catchall for anything that wasn't included in the other documents. This helps the heirs and executor avoid later problems in Ohio probate court if the deceased forgot to include something or obtained other property after they formed their trust.
People in Ohio who are primary caregivers to relatives with special needs can develop an estate plan that will provide the support their relative with a disability may need. In order to create the most effective estate plan for a loved one with special needs, it is important that the caregivers are able to wade through the complicated eligibility rules for government benefits and are knowledge about the health care professionals, services and therapies that will be needed to provide a disabled person with support throughout their life.
When properly structured, a trust can be an effective estate planning tool for Ohio residents. By putting an IRA or a life insurance policy into a trust, beneficiaries gain access to an asset that can continue to grow either tax-free or tax-deferred. Individuals who create a trust can benefit because they determine how distributions are made. In some cases, distributions from a trust can change as a beneficiary ages or in other ways to meet its goals.
Ohio residents can use estate planning to make certain provisions for situations in which they may be mentally or physically incapacitated. If such a situation arises, it is important that they have the appropriate legal documents in place so that it can be ensured that the decisions that will be made on their behalf are according to their wishes and preferences.
There are a number of reasons people might need to update an estate plan. One of those reasons is if the person has created an estate plan with the intention of avoiding estate tax. The estate tax exemption has increased significantly, and the provisions made might no longer be necessary. Another reason is if the estate plan was created in another state and the person then moved to Ohio.