The Relationship Between Estate Planning and Real Estate in Ohio
The pitfalls associated with buying and selling an estate can be overwhelming for most. Rather than trusting what you have heard, it is important to bring in expert advice when considering real estate or estate planning. There is a lot of crossover between these two; such as like tax issues and asset protection are common considerations. See the list below to get more information on some of the issues you will need to be keen on so the experience of managing your property is as simple as can be.
1. Joint Ownership (Survivorship Rights) – While many have joint ownership already in place, there are still some mistakes to be made. Consider who you wish to be in control of your estate after death, both property and money. Leaving all your assets to a single individual with no other involved parties can lead to complications down the road.
2. Tenants in Common – Consider any properties that are held by multiple people. Using tenants in common on a deed or title might make it easier to complete a like-kind exchange, charitable trust, or any sort of joint estate planning.
3. Adding Children to a Title – While this idea seems like a straightforward way to pass on wealth, it may also result in a disconnect with your planning goals. Capital gains basis and gift tax problems may result from this, as well as the issue of opening your assets to your children's creditors. A transfer on death beneficiary designation accomplishes the same estate planning purposes without unintended consequences.
4. Capital Gain Planning – Avoiding extra taxes using "like kind" exchanges and various trusts is key. These can be used to delay or defer capital gains taxes on a property, saving you lots on taxes and headache after death.
5. IRAs and Real Estate – Within certain guidelines, it is both legal and advantageous in some cases to hold real estate titles in your IRA. This may or may not be an appropriate diversification and tax strategy for your investments; it requires a qualified trustee as third party to hold the actual title.
6. Medicaid – Many of those planning estates should consider if they qualify for Medicaid assistance in some areas. Depending on your real estate property, you could exempt these from your Medicaid qualifications to receive benefits. Note that these rules and regulations are liable to change.
As in all areas, make sure to consult with qualified legal consul before considering these strategies of protecting your estate. Each individual case is, on its own, a complex puzzle of moving parts. Do not hesitate to contact legal representation along with fiduciary planning services when considering how to best prepare your estate in your death.