Ohio residents can use an estate plan to ensure that their wishes regarding how their legacy is handled are enforced. Estate planning can be used to protect and manage one's legacy while reducing the tax burden of the state.
In many cases, Ohio estate owners want their assets to last for as long as possible. This could mean that the wealth lives on for generations after the individual who acquired it passes away. However, not all fortunes will be used properly by subsequent generations. Using estate plan documents can increase the odds that assets are used correctly and by as many heirs as desired.
Financial advisers recommend that people in Ohio set up an estate plan based on four important elements. They should have a will, financial power of attorney, healthcare power of attorney and advance healthcare directive. These basic documents could help prevent problems when people become incapacitated due to disease or injury and direct the distribution of an estate after death. Although people might feel tempted to put off estate planning, they could overcome procrastination by setting priorities and pursuing goals step by step.
Usually, business owners focus on how to grow and expand their companies. While success is the ultimate goal, growth for the sake of growth is not always beneficial. This truth becomes more apparent during a downturn in the economy.
A trust may serve a number of different purposes for an Ohio resident. It may be used to allow assets to increase in value while deferring taxes. It may also be used to allow the grantor to specify conditions for distribution such as the beneficiary reaching a certain age. The grantor can also state the goal of the trust such as paying for the education of loved ones.
For family businesses in Ohio that remain in the hands of their founders, it can be particularly important to consider succession planning. For example, over 12 million businesses across the country are privately owned by members of the baby boom generation, some of them approaching their mid-70s. When considering retirement and transition, it can be critical to have a plan in place that protects the value of the business for the future.