In the ever-evolving legal landscape, staying updated on law changes that affect estate planning is important for ensuring your estate plan remains effective and comprehensive. Various legislative updates over the years can impact your financial legacy, asset distribution, and overall estate management. Understanding these changes helps in making informed decisions that protect your interests and those of your loved ones.
Hi, I’m Amanda Waltz, a dedicated estate planning attorney with years of experience helping clients navigate the complexities of estate law. My practice focuses on providing personalized legal advice to ensure your estate plan is up-to-date and aligned with the latest legal requirements and best practices. With a commitment to approachability and a passion for empowering my clients, I strive to make estate planning a seamless and straightforward process.
In this post, we’ll go into 5 topics where law changes affect estate planning, highlighting key legislative updates and their implications for your estate plan. From Federal law changes to Ohio-specific regulations, we’ll cover everything you need to know to keep your estate plan in top shape.
- Power of Attorney
Effective March 22, 2012 Ohio adopted the Uniform Power of Attorney Act. The new version is designed to include statutory form language to help prevent agents from abusing the power and prohibits agents from performing certain acts unless the POA specifically authorizes those acts. R.C. 1337.
- Common Law Marriage
Effective October 10, 1991 Ohio no longer recognized common law marriage. If you entered into a long-term relationship after October 10, 1991 and have not been legally married, you and your partner will not be considered “common law” married in the state of Ohio. However, if you entered into a long-term relationship before October 10, 1991 or while residing in another state that recognizes common-law marriage, you could be considered legally married. Details such as this impacts your probate estate and should be considered when creating your estate plan. R.C. 3105.12.
- Joint with Rights of Survivorship
Deeds for real property executed and recorded prior to April 4, 1985 that create a tenancy by the entirety in a husband and wife will be considered to have created in said deeds a survivorship tenancy. R.C. 5302.21.
Effective March 11, 1996 Ohio law recognized survivorship tenancy for real property, requiring language to show a clear intent to create a survivorship tenancy, exempting conveyances done on or before April 4, 1985 between spouses as a tenancy by the entirety. R.C. 5302.20.
Effective January 30, 2014 Ohio law created a general form for the language that is required to create a survivorship tenancy between two individuals, exempting only those conveyances done on or before April 4, 1985 between spouses as a tenancy by the entirety and tenants with a right of survivorship under the common or statutory laws. R.C. 5302.17.
- Transfer of Automobiles
In April 2017, the law changed to allow the surviving spouse to receive an unlimited number of automobiles with a sum total of not more than $65,000.00. R.C. 2106.18. Additionally, a surviving spouse may receive one watercraft, one watercraft trailer, one outboard motor, or one of each. R.C. 2106.19.
This does not include automobiles transferred due to joint ownership, transferred based on a transfer-on-death affidavit, or specifically distributed to other individuals in a will.
Previously the surviving spouse could receive up to 2 automobiles with a sum total of not more than $45,000.
- Medicaid Recover from All Assets
In 1993 Congress created the Medicaid Estate Recovery Program requiring states to demand repayment for Medicaid benefits that were previously provided. States had the option to collect from only probate assets or to collect from the “expanded estate” which included both probate and non-probate assets.
Probate assets are assets that pass through your will or have to go through the probate court process in order to be inherited by your beneficiaries.
Non-probate assets are assets that pass using payable on death, transferable on death, trusts, life estates.
Effective January 1, 1995 Ohio implemented the Medicaid estate recovery program, as required by Federal Law. Initially Ohio made the decision to collect from probate assets, only those assets that pass through the probate court process through the will or by intestate.
On June 30th 2005, Ohio House Bill 66 came into effect and Ohio began collecting from the “expanded estate” which included both probate and non-probate assets, including assets that were in your name at the time of your death but set to transfer directly to your beneficiaries using tools such as a payable on death, transferable on death, revocable trust, and life estate.
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Staying informed about law changes that affect estate planning is essential for safeguarding your assets and ensuring your wishes are honored. As we’ve seen, recent legislative updates can have significant implications for your estate plan, from transferring assets to changes in probate law. Regularly reviewing and updating your estate plan in light of these changes will help protect your legacy and provide peace of mind for you and your loved ones.
If you haven’t reviewed your estate plan recently, now is the perfect time to do so. Contact me to schedule a consultation and ensure your estate plan is current and comprehensive.
Don’t wait—reach out today to protect what matters most.