Estate Planning: A Truly Sad Story, Prince – His Tragic Death and His Lack of Estate Planning

Singer Prince Passing Proves The Importance Of Estate Planning Documents

estate planning ohio princeAs everyone knows by now, sadly, Prince unexpectedly passed away recently. In the days following his untimely death, questions began to arise as to whom would inherit his estate, which some have estimated to be worth between 300 and 500 million dollars. Surely he had a will, experts speculated. He had an army of attorneys working for him.

As it turns out, he apparently died with no estate planning documents in place. When asked how this happened, one of his many attorneys stated “Maybe he didn’t expect to die.” Unfortunately, this is the mindset that many of us have. We never would expect to die so soon.

Lack Of Estate Planning Documents Can Result In Repercussions For Surviving Family Members

Prince died leaving 1 full sister and 6 half siblings. Under Minnesota law, as under Ohio law, the 7 of them will share equally in his estate. Is this what he would have wanted? Possibly, but he was known to have given generously to charities, having developed a foundation and having already donated millions to various charitable organizations. Sadly, none of them will share in his estate.
Prince’s … Read More... “Estate Planning: A Truly Sad Story, Prince – His Tragic Death and His Lack of Estate Planning”

Tax Tips for 2015

What You Can Do To Minimize Your Tax Burden For 2015

tax tipsIt’s now the time of year to consider what you can do to minimize your tax burden for 2015. Following are some of the tax tips you may want to consider to reduce the amount due to Uncle Sam next April.

  1. Make your charitable deductions before the end of year.  Generally, you can deduct charitable contributions up to fifty percent of your adjusted gross income.  Get rid of those unused items and receive a tax deduction.
  2. Remember that you can gift up to $14,000 per year to each individual with it being exempt from any gift tax reporting requirements to the IRS (or actual gift tax if you have exhausted all of your lifetime gift tax exemption).  If you are planning to make any large gifts, at least make a gift of $14,000 before the end of December to take advantage of this gift tax exemption.
  3. Go to the doctor.  If you itemize your deductions and have enough medical expenses (10 percent of AGI for most individuals), you can deduct these expenses.  If you need new eyeglasses, hearing aids, etc., now is the time to do it.
  4. Prepay.  You
… Read More... “Tax Tips for 2015”

Estate Planning Tips for Same-Sex Couples

Statutory Protections In Estate Planning Now Available To Surviving Spouses Of Same-Sex Marriages

estate planning same-sexNow that the institution of marriage has been sanctioned for same-sex couples, estate planning options and benefits that have not been available before can now be utilized to protect and provide for spouses in same-sex marriages.

Surviving spouses have always been provided certain statutory rights to a deceased spouse’s estate so that they are not completely disinherited.  A surviving spouse is entitled to a “family allowance,” usually the first $40,000 of the deceased spouse’s estate.  The surviving spouse is also entitled to the first two automobiles of the deceased spouse, unless specifically bequeathed to someone else.  The surviving spouse may live in the marital residence rent-free for one year.  The surviving spouse has the option to purchase the marital residence.  The surviving spouse can elect to take against the will.  These are just some of the statutory protections now available to surviving spouses of same-sex marriages.

Although Ohio no longer has an estate tax, the federal estate (or inheritance) tax exists.  Surviving spouses have always been able to utilize the federal estate tax credit of a predeceased spouse, either through a Marital Credit-Shelter Trust, use of a … Read More... “Estate Planning Tips for Same-Sex Couples”

Estate Planning: Same Sex Relationship Estate Planning

A Review Of Estate Planning Rights After The Supreme Courts Rulling On Same Sex Marriages

estate planning same sex ohioNow that the United States Supreme Court has deemed the refusal of states to allow same sex marriages unconstitutional, same sex couples in all fifty states may now marry, divorce and establish estate plans as spouses.  This is a good time to review the rights of married couples with respect to estate planning and the steps that couples should consider taking to ensure that their wishes are carried out properly.

In Ohio, surviving spouses have certain statutory rights to the deceased spouse’s probate estate.  In essence, you can’t completely disinherit a spouse.  Under Ohio law, a surviving spouse receives a number of benefits, including, but not limited to, a family allowance of the first $40,000 of the estate, the first two automobiles not specifically bequeathed, the right to live in the marital residence rent free for a year, the right to take against the will, etc.  Spouses also have certain property rights in divorces, such as the right to share in marital property and possibly spousal support.   However, many of these rights may be waived by executing an antenuptial agreement before marriage. With an antenuptial … Read More... “Estate Planning: Same Sex Relationship Estate Planning”

Divorce Assets In Ohio – Survivorship Benefits For Spouse

What Happens in Ohio if a Divorcee Dies Before Transferring Property or Assets as Divorce Court Ordered?

How Assets are to be Divided After the Passing of a Spouse During the Divorce Decree

divorce assets ohioThe question was recently  posed to me as to what happens if, after a valid and enforceable Decree of Divorce, Dissolution or Legal Separation is filed, one of the spouses or ex-spouses dies before the division of assets can be fully completed.  Does the ex-spouse or spouse still retain an interest in an asset that has been released by the Court Order?  Two possible scenarios may arise, and each will be addressed separately.

Husband Passes First:

Let’s address the situation when the husband passes first.  What about those assets in which wife released or no longer had any interest, yet she remains either a beneficiary or a joint survivorship owner when husband dies?  By operation of law, you would think that those assets would pass to her regardless of the Court Decree, but a quick look to Ohio statutory law helps answer this question.  With respect to joint and survivorship real property, Ohio Revised Code specifically states that if a husband and wife own real estate  … Read More... “Divorce Assets In Ohio – Survivorship Benefits For Spouse”

Legacy Trust: A Premarital Planning Tool

Estate Planning Specialist, Joseph Balmer, digs deeper into the new Ohio Legacy Trust Law Act, and reveals how it can be used as a protection tool in the area of Family Law.

legacy trustEffective March 27, 2013, the Ohio Legacy Trust Act became law.  With the passage of this act, Ohio became one of 14 states to allow self-settled trusts.  Ohio also, arguably, has one of the 4 or 5 strongest legacy trust act laws with respect to protecting one’s assets against creditors.  This repeals the long held English rule that one cannot set up a trust for himself or herself and protect his/her assets against one’s potential future creditors.

In a nutshell, with a Legacy Trust, a settlor can set up an irrevocable trust with a third party as the trustee.  The unique aspect of this trust is that, generally, a settlor’s creditors cannot attach trust property, even if the settlor is a trust beneficiary (both income and principle) and has retained powers over the trust property.  The caveat is that the trust settlement cannot be a fraudulent transfer.  Thus the transfer cannot be with the intent to defraud the settlor’s creditors.  Thus, the settlor needs to make sure … Read More... “Legacy Trust: A Premarital Planning Tool”

Tax: Effects of the “Fiscal Cliff” Legislation

Compromise Reached, But How Does It Effect Tax Planning For 2013?

tax

In December, 2012, we addressed the looming “fiscal cliff” tax ramifications and potential last-minute tax planning.  With legislation finally passed in late December, in order to prevent widespread tax increases and steep spending cuts, it is a good time to look at the highlights of the legislation and how it affects taxpayers.

  1. Income tax rates.  A compromise was reached on income tax rates.  Although neither side attained its goals, tax cuts were extended on incomes up to $400,000 for individuals and $450,000 for couples.  Earnings above that are taxed at 39.6%, up from 35%.  Many liberals and conservatives were unhappy with this compromise that extends the tax cuts for most taxpayers.  Unless new legislation is passed, this extension is permanent.
  2. Estate taxes.  The federal estate tax exemption remains at $5 million (adjusted for inflation) and up to $10 million for family estates.  Without legislation, the exemption was set to return to $1 million for 2013.  The top estate tax rate is set at 40%, up from 35%.  This change is permanent.
  3. Capital gains and dividends.  Capital gains tax rates were returned to those during the Clinton administration.  Capital gains
… Read More... “Tax: Effects of the “Fiscal Cliff” Legislation”
Page 9 of 12
1 … 7 8 9 10 11 12