Ohio residents are sometimes reluctant to address estate planning issues because it can be difficult for them to contemplate their death. Another issue is the dizzying array of documents involved. Dealing with wills, trusts and powers of attorney can seem daunting to those unfamiliar with legal documents, but tackling these issues head-on ensures that loved ones will be provided for and can provide peace of mind.
Many Ohio residents have invested a significant amount in their Individual Retirement Accounts over the years. These kinds of accounts allow people to save for retirement while taking advantage of tax benefits. Some people end up saving so much that their IRA funds outlive them.
Those who become incapacitated for any reason may not be able to manage their finances. However, Ohio residents and others can create a financial power of attorney to resolve this problem. A financial power of attorney is a person or entity who is allowed to conduct various transactions on an incapacitated person's behalf. Without such a document, family members may need to go to court to get permission to manage that individual's money.
People in Ohio thinking about the future may want to do their best to ensure that their loved ones are cared for after they are gone. To that end, they may make out a will and develop an estate plan. While people often think about real estate, bank accounts and other tangible or financial items when planning for the future, they may pay less attention to digital assets like email accounts, social media profiles, online subscriptions or even cryptocurrency wallets. People are spending more time and money online than ever before, but making an estate plan for these digital assets is often overlooked.
Many people have misconceptions about estate planning, but an argument can be made that estate planning is part of a comprehensive financial plan. Ohio residents might like to know about some of the myths that often make things complicated when it comes to estate planning.
Some estate owners in Ohio might wonder what type of trust would be best for their particular situations. For example, a special needs trust can be created to provide for a loved one who gets government benefits because of a disability or medical condition.
Ohio residents who are developing an estate plan should strongly consider including a revocable trust. In addition to allowing an estate to avoid the expense and time of the probate process after the grantor dies, there are several other reasons to create a revocable trust.
Ohio parents often distribute their assets to children through their estate plans, but everyone, including childless or single people, has much to gain from making these final arrangements. All people have a right to declare formally how their money and possessions will be treated upon their death. People without close relatives who do not prepare a will or shift assets into a trust could likely have their estates distributed by a probate court under the state law of intestacy to distant relatives who they might not even know.
Individuals in Ohio and throughout the country may have some of their assets held outside of the United States. However, they should still be accounted for in a person's overall estate plan. Generally speaking, it is a good idea to consider how an asset can be included in a plan before buying it. If a person does have a home, olive grove or other assets outside of the United States, it is critical that it be revealed to an estate planner.
Some art collectors in Ohio may fail to make an estate plan or might have one that plans insufficiently for the art collection. Some cannot decide to whom to leave their collection and put off making the decision until it is too late.