People work hard for their money, and most take pride in being able to leave something to their loved ones one day. When Ohio residents do their estate planning, they likely want to be able to keep as much money in their family as possible and not swallowed up by taxes. Having some tips on how to do that might be helpful.
Firstly, estate planning is not just for the very wealthy. Many people have retirement plans for which they don’t want to have their heirs paying high taxes. There are ways to minimize those taxes such as converting traditional traditional 401(k) or IRA accounts to Roth accounts. If a testator has sizable assets, he or she might also consider setting up a permanent or irrevocable trust, which offers the most benefits tax wise.
Assets can also be gifted while the testator is still alive. The IRS allows gifts of up to $15,000 a year per person as a gift. These gifts will ultimately bring down the value of an estate, but gifting has to be planned wisely. It’s good to know, too, that the $15,000 is also tax free for the recipient.
Sorting through complex estate planning issues may be difficult to do without professional help. Giving beneficiaries the most assets is one of the major goals of a comprehensive estate plan, and not all estate plans are the same but depend on individual circumstances. Getting legal advice may help an Ohio resident to ensure all estate planning documents are included and are in order.
