2024 - Certain Results in an Uncertain World
Both Congress and the Ohio Legislature passed laws in late 2012 that made dramatic changes to "Wealth & Health" planning. Ohio passed laws that have created one of the best Asset Protection environments in America. In Congress, the so-called "Secure Act" should have been named the "Insecure Act." 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. Time works for us when we plan, and against us when we don't.
Federal Estate Tax Exemption; New Medicaid/VA Benefits Concerns
Congress has made "permanent" for every taxpayer a $10 million exemption from federal gift, estate and generation-skipping transfer tax, indexed for inflation, resulting in a 2024 exemption of $13.61 million per taxpayer. That is good news, but you should plan now before the improvements are eroded by a tax-hungry fedeal government, now that inflation is out of control and interest rates are rising. It is now considered likely the estate tax exemption will "sunset" back to 2015 levels (<$6mm) in 2026. 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. Strategies are available for some taxpayers to soften the effect of newly-increased income taxes. When it comes to tax planning, time works for you when you start now and against you when you wait,
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 nursing home costs. The federal government, states and counties are constantly looking for ways to further limit those who can become eligible for nursing home benefits.
Ohio Eliminated Estate Tax, and Adopted Dramatic 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The Ohio Estate Tax was repealed effective for anyone dying after December 31, 2012.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's Homestead Exemption protects from lawsuit creditors the equity in a residence ($161,375 through 2025, or $322,750 if owned jointly by a married couple), and Ohio law permits the creation of Domestic Asset Protection Trusts to protect other assets from lawsuits. Mr. Huddleston was one of the experts called to testify on behalf of this unique legislation, making Ohio one of the top five wealth-friendly states in America. 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.
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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:
U. S. National Debt Clock
Please Note: Each taxpayer's share
of the U. S. National Debt is now
approximately $269,000--increased by more than
$100,000 in the last 12 years--and only
1/3 of the United States population
pays federal income tax!
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