Both Congress and the Ohio Legislature passed laws in late 2012 that made dramatic, favorable changes to "Wealth & Health" planning. Ohio passed laws that have created one of the best Asset Protection environments in America, and Governor Kasich pushed through new regulations in 2016 that made Medicaid Planning more difficult. There is always mischief afoot in Washington. Whether you are running out of money and considering Medicaid or VA planning, or are wealthy and trying to figure out how to protect and transfer all your wealth, NOW is the best time to act.
Federal Estate Tax Exemption; New Medicaid/VA Benefits Concerns
The American Taxpayer Relief Act of 2012 ostensibly made "permanent" each taxpayer's $5 million exemption from federal gift, estate and generation-skipping transfer tax, and even indexes that amount for inflation, resulting in a 2017 exemption of $5.49 million per taxpayer. That is good news, but you should plan now before the improvements are eroded by a tax-hungry fedeal government, and while interest rates are at historic lows. While some taxpayers who previously created complicated estate tax-avoidance plans may now be able to simplify their planning, wealthy taxpayers should review their plans before Congress and the IRS take away some of the tools and strategies we use to help our clients "leverage" their exemptions for even greater wealth transfer. There are even strategies available for some taxpayers to soften the effect of newly-increased income taxes.
Negative changes are definitely coming for those worried about running out of money, and who may need to apply for Medicaid or Veterans Administration benefits, which can include persons with substantial assets but who are worried about nuring home costs. Experts agree that Congress is going to increase the Medicaid "lookback period" from 5 years to 7 years. The Veterans Administration has promulgated regulations--note yet effective--to create a lookback period for VA benefit qualification, which has not previously been a problem for VA Aid & Attendance Pension applicants.
Ohio Eliminates Estate Tax, Adopts Dramatic New Asset Protection Law
The Ohio Estate Tax was repealed effective for anyone dying after December 31, 2012. Prior to that date, an Ohio estate tax return was required for any Ohioan who died having net assets exceeding $338,333.
In our "entitlement" society, lawsuits and lawsuit verdicts are increasing. Individuals who have created or are creating wealth and security can lose everything to ridiculous verdicts rendered by juries populated by sympathetic but unwise and uneducated citizens. Ohio has passed a dramatic new law, effective March 27, that raises the Homestead Exemption to $125,000 per person ($250,000 married couples) adjusted for inflation, and permits the creation of Domestic Asset Protection Trusts to protect assets from lawsuits. If you are a business owner wishing to protect your personal assets, or just someone who has worked hard and wants to protect your nest egg, there is now a way to do so without the extra expense of going to another state or offshore. Mr. Huddleston was one of the experts called to testify on behalf of this new legislation, and we can help you create a powerful new asset protection plan for your assets.
Explosion of the Federal Deficit The Day of Reconing is Coming To see what economically illiterate Congresses and Presidents have been doing to our Country, our children and our grandchildren for generations to come, please click the following Link:
Please Note: Each taxpayer's share of the U. S. National Debt is now approximately $167,000--up from $122,000 in the last 8 years--and only
1/3 of the United States population
pays federal income tax!
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