Congress passed the "Secure Act" which makes major changes in the rules as to distributions from 401k plans and IRAs, beginning January 1, 2020. If you have any questions, please contact us to see how these new rules may impact your estate planning. Set forth below is a Q/A to explain some of the changes. We will refer to IRAs only, but unless noted below these rules apply to 401k plans or profit-sharing plans. The new rules do not apply to pension plans.
Some older Ohio residents may be among the 40 percent that Wells Fargo says do not have documents in place to protect themselves if they become incapacitated. More than 780 people 60 and older and nearly 800 adult children ages 45 to 69 participated in the survey.
Not having a will can be a major estate planning error. If an Ohio resident dies without a will, assets will be distributed according to state law. In such cases, loved ones may have to spend time and potential inheritance money sorting through the probate process.
When Ohio residents create an estate plan, they might also want to consider whether they need one for digital assets as well. People might not think of social media or email accounts as assets, but they may need to leave instructions about what should be done with these. In some cases, such as with a cryptocurrency account or even a domain name, the asset might have significant value.
People in Ohio dealing with end-of-life challenges for a loved one may be brought face-to-face with the complicated realities of estate planning and the consequences that can happen due to a lack of advance planning. Estate planning can involve more than the creation of a will. There can be a number of documents that are part of a comprehensive plan for health care and other later-in-life needs that can prevent significant problems further down the road.
Ohio residents may have concerns that a loved one will act irresponsibly after receiving an inheritance. However, there are ways to craft an estate plan that makes it difficult or impossible for a beneficiary to squander these funds. For instance, it may be possible to create a spendthrift trust that limits when and how much can be disbursed. This may be ideal for someone who has a spouse who likes to gamble or may have other problems managing money.
Some people in Ohio might wonder what kind of documents would be best to use in creating an estate plan. For example, one man put his daughter on his investments as the beneficiary. He also had a house and a car he wanted to pass on to her.
Some Ohio residents may think of an estate plan as something that is only for the wealthy However, estate planning can be important even for single people who have few assets and no dependents. For example, a person may want to create documents that appoint someone to manage any health care or financial issues in the event of incapacity. For a young person, this might be one or both parents.
While Ohioans may differ in their opinions of Hugh Hefner and the way in which he lived his life, they might all benefit by learning about how he planned his estate. Hugh Hefner planned his estate so effectively that he was able to live out his life without worry and still leave his estate to his beneficiaries with little worry that they would fight.
Estate planning is not something that just exists for wealthy people. Ohio residents should have estate plans in place because they help to protect their loved ones while allowing them to have control over how their assets and other affairs will be handled.