Top Mistakes of Estate Planning

What is Estate Planning?

Estate planning is just a matter of putting together a written set of documents that are going to deal with the management of your assets when you're alive, when you're disabled, and when you're deceased.

#1 Doing Nothing

The biggest mistake you could make on your estate planning is to not have a plan at all. If you do not establish an estate plan, the state of Ohio will create one for you, but it won't be what you want and can cause major issues for your loved ones. 

#2 Believing that Estate Planning is Only for the Wealthy

This is not true! Estate planning is important for everyone over the age of 18 and is so much more than just putting together your will. Estate planning is also about choosing a financial power of attorney and, most importantly, a health care power of attorney.

#3 Leaving a Trust Unfunded

People will go through that process of putting together a trust, and then they don't retitle any assets into it.

One of the things we do that's unique in our office is we work through funding. We work with you to gather the information about the assets, decide which ones will be retitled to the trust.

#4 Joint and Survivorship with Children

Having joint ownership with your children can seem like the right thing to do, it makes it easy. The concern that exists and that is then you've now exposed your home to the creditors of your children.

Learn More About Estate Planning in Cleveland, Ohio 

If you are interested in learning more about Estate Planning, our team is always here to help! Contact us today and check out our video library to watch more informational videos like this!

Most Recent

Pre-Planned Funerals as Part of Medicaid Planning

Posted By Richard A. Myers, Jr.
June 16, 2021 Category: Funerals

Joining us this week in our first of many guest interviews is Julie Graf-Skinner at Busch Funeral Homes. Today, she will be discussing the importance of pre-planning funerals as part of a Medicaid

The End of Step-up Basis?

Posted By Jacob Davidson
June 10, 2021 Category: Tax, Step Up Basis, Upcoming Changes Of Law, Grantor Trust, Intentionally Defective Grantor Trust

The Possible Loss of Step-up Basis   A step-up in basis, or more accurately, a basis adjustment, has been a cornerstone of many estate plans throughout the years. Let’s take a look at what a basis adjustment is, how a step-up in basis works, and some recent news about its possible demise. The basis of property is a tax term and it is the amount that someone paid for it. If that property is later sold, capital gains or losses must be reported. This would be an amount taxed on the difference of the original basis amount and the amount of the sales price. However, a basis adjustment occurs when the property is inherited. Meaning, the beneficiary of that property receives it with a basis of its current fair market value instead of its original purchase price. Let’s look at an example. Nancy bought stock in XYZ Corp. in 1970. She paid $100,000 for it. It is now worth $500,000. If she sold it this year, she would have to pay capital gains tax on the $400,000 profit. Instead, if Nancy died this year and her son inherited the property, he would take the property with a basis of $500,000. He received a step-up in basis. Nancy’s son could then sell the property at its fair market value of $500,000 with no capital gains tax due. A basis adjustment can even be preserved in irrevocable trust planning. In our intentionally defective grantor trust, a basis adjustment is achieved via reserving a limited power of appointment. Per Treasury Regulation

Essential Services Beyond Legal Elder Care Planning

Posted By Richard A. Myers, Jr.
June 09, 2021 Category: Elder Care

In the next four weeks, we will be posting a mini-series of guests who can help those who are taking care of a loved one. Check out our guest lineup in this

Let's Get Social

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