When an individual comes up with a retirement plan, he or she is concerned with risks such as how to invest, the risk of such investments and how they hold their value in the long run. One other risk that needs to be considered is the risk of a spending shock. Therefore, a retirement plan should consider the need to be prepared for long-term care as a person gets older.
People in Ohio who have used trusts as part of their estate planning may want to review those documents. There have been a number of changes in federal tax laws in the past several years that might make those trusts unnecessary or necessitate a change in them. One big change is in how trusts are taxed. For 2016, a trust with an adjusted gross income above $12,300 will be taxed at the highest marginal rate. As a result, it may be more cost effective to have either the beneficiary or the grantor pay the tax on income since the AGI threshold is significantly higher for individuals and married couples filing joint returns.
Some people in Ohio who are making their estate plans may want to look into a Totten trust. This type of trust might be useful for someone who wishes to avoid making a will and wants to keep financial arrangements private from others.
When Ohio residents plan for the future of loved ones, pets may be overlooked in the considerations. It is possible for trusts to be established for pets, and experts say that pet trusts can eliminate problems that sometimes arise when pets are left without an owner due to death.