There are two types of taxes to be aware of in the estate planning process: 1) income taxes, and 2) estate/inheritance taxes. You may want to consult your accountant for a detailed analysis of your tax situation.

There are ways to transfer your assets so as to minimize Federal income taxes. These plans generally are of benefit only if a person owns appreciated capital assets. An example would be the Charitable Remainder Trust.

Federal Estate Taxes only accrue for estates of $675,000.00 (total "probate" and "non-probate" property) or more (under present law). (Ohio Estate Taxes only accrue to assets over $25,000.00 under present law). Therefore we refer to an estate as either "large" if more than $675,000.00, or "small" if less than $675,000.00 total assets. For our husband and wife clients with large estates, we would probably recommend a living trust arrangement to provide for up to $1,350,000 of assets to be transferred in the long run without incurring Federal Estate Taxes.

WARNING: The foregoing information is presented for general illustration purposes only, and is NOT necessarily complete nor is it intended to be relied on as legal advice. Each person's estate needs to be planned on an individual basis!