Estate Planning Tips for Same-Sex Couples

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

Now 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.… View Full Article → “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

Now 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.  … View Full Article → “Estate Planning: Same Sex Relationship Estate Planning”

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.

Effective 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.  … View Full Article → “Legacy Trust: A Premarital Planning Tool”

Tax: Effects of the “Fiscal Cliff” Legislation

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

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.  
… View Full Article → “Tax: Effects of the “Fiscal Cliff” Legislation”

ELDER LAW UPDATE: The Legal Implications of Multiple Generations Living Under One Roof

Due to the sputtering economy, the baby boomer generation approaching retirement age, and the ever increasing life expectancy, multi-generational households are becoming more common than they have been in decades.  Due to the need to combine family incomes or in order to take care of an elderly or ill relative, grandparents, parents and children are sharing living space in increasing numbers.  According to the Pew Research Center in Washington, D.C., in 2008, 49 million Americans or 16 percent of the population lived in households with at least two adult generations, an increase of 17 percent from 2000.  This trend comes with numerous legal implications and issues, some of which are discussed below.

When a parent and adult child choose to live together, numerous elder law and estate planning issues arise. First, Medicaid issues need to be considered.  What if a parent contributes money for the child to add an addition to the child’s home for the parent to live in?  … View Full Article → “ELDER LAW UPDATE: The Legal Implications of Multiple Generations Living Under One Roof”

Highlights of the 2010 Tax Relief Act

The Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010, signed into law December 2010, finally brought some certainty to estate tax, gift and generation skipping tax, at least temporarily.  Although estate planning attorneys now have a better idea as to advising clients in wealth management opportunities, the new law only applies through December 31, 2012. Thus, we may find ourselves back in this position of uncertainty in two years.  Some of the major aspects of the Act are summarized below:

  • Estate tax exemptions and estate tax rates: Under President Bush’s Tax Relief Act of 2001, the federal estate tax exemption had increased to $3.5 million dollars in 2009, was unlimited in 2010, and was set to fall all the way back down to $1.0 million dollars in 2011.  This problem was solved for the short term by setting the exemption at $5.0 million dollars for 2011 and 2012.  
… View Full Article → “Highlights of the 2010 Tax Relief Act”

Divorce As A Medicaid Planning Tool?

Many happily married seniors are facing a previously unthinkable proposition:  terminate their marriage or risk losing a majority of their savings to medical expenses, leaving both of them with little savings to enjoy their twilight years, regardless of how well they planned in advance.  How can this happen?  With medical technology ever improving, allowing us to live longer, most individuals will spend at least a few years in a nursing or retirement facility during our lifetimes.  With the baby boomer generation approaching retirement age, more and more of us will fall into this category.  How will these long-term care expenses be paid?  The choices are private savings, long-term health care insurance, Medicaid or a combination.  This is where the dilemma occurs.

For example, consider a devoted husband and wife living financially comfortable in retirement.  Husband has a series of strokes and reaches the point physically where wife can no longer care for him.  … View Full Article → “Divorce As A Medicaid Planning Tool?”

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