For the majority of Americans, most net worth is held in the home and/or tax deferred retirement accounts. Estate planning for the home was covered in our previous post, http://www.perlalaw.com/blog/estate-planning-for-your-home-simple-will-transfer-on-death-affidavit-or-revocable-trust/. This post will focus on planning for tax deferred retirement accounts.
What is a Tax Deferred Retirement Account?
A tax deferred retirement account is a financial account where your contributions can grow tax deferred until they are withdrawn. Traditional IRAs, Annuities and 401(k)’s… Read the rest
Not so long ago, living trusts, also commonly referred to as revocable trusts or family trusts, were used as Medicaid planning tools for married couples in Ohio. A married would put their home in a living trust prior to a Medicaid application. As the home was in a trust and not in the names of the married couple, it was considered a countable resource. As such, it would increase the Community Spouse Resource Allowance (“CSRA”) by the value of the home, thereby allowing the community spouse to spend down excess resources by transferring the home into their individual names rather than spending the… Read the rest
On January 19, 2015, Cleveland Attorney Elizabeth L. Perla of the Law Offices of Randall M. Perla spoke to residents of the Franciscan Village of Cleveland, Ohio, which offers independent living for seniors. At the talk, Ms. Perla touched upon issues of Medicaid, including the use of Medicaid to pay for long-term nursing care, eligibility for Medicaid and Medicaid planning opportunities. She also reviewed basic estate planning documents including the Health Care Power of Attorney and Living Will, Financial Power of Attorney, Living Trust and Last Will and Testament. The session gave residents… Read the rest
It is certainly true that no one likes to think about death or dying. But it is also true that everyone dies, and unfortunately some leave this earth far too soon. Estate Planning is not morbid. It is responsible. We don’t avoid buying health insurance because it reminds us that we may get sick. In the same way, we should not avoid estate planning. After all, estate planning is an insurance policy for our loved ones.
Remember, estate planning isn’t for you, it is for the people you leave behind.
There are several key questions that you need to ask yourself.
1.) Who would I want to care… Read the rest
Probate is seen by most as a very negative process and one to be avoided at all cost. Probate is not the big, bad wolf, it is simply the legal process that takes places after someone dies. The primary purpose of the probate process is to pay the deceased person’s debts and taxes and transfer his property to his heirs and beneficiaries. True, probate is time consuming and can be costly. However, sometimes an attempt to avoid probate can end up costing a person much more.
Example- John, hearing about the horrors of probate, decides to gift his home, which he purchased in 1951, to his children now,… Read the rest