A quick primer on “no contest” clauses which are permitted in Ohio. They work best when the beneficiary has something to lose by challenging the will. Leaving someone the proverbial $1 is ineffective. It is best to leave $50,000 or so which is the amount that could be spent in defending a lawsuit from a disgruntled heir.
The Supreme Court unanimously ruled that in vitro babies conceived after the death of the father are not automatically entitled to Social Security Benefits. State law has to permit them to qualify as heirs at law for intestacy purposes. I can only hope that the forthcoming decision on Obamacare will also be unanimous.
Couples in a second marriage face issues different than couples in their first marriage.
1. How to balance the financial needs of the new spouse with the expectations of children from the first marriage.
2. When the second spouse is close in age to the children, how to provide for the spouse without making the children wait their entire lives for an inheritance.
3. Who/what to designate as the beneficiary of retirement assets and insurance policies.
Of course, like many topics on this blog, these issues can be addressed through the use of a trust in an estate plan. A prenuptial agreement is also important when there are children from a prior marriage.
1. Increase life insurance to at least 10x salary, or 15x if affordable.
2. Prepare a will which designates a guardian for your child.
3. Consider a trust to avoid child receiving inheritance at 18..
4. Jay is a good name for boys.
Simple strategies to minimize estate taxes:
1. Do not procrastinate. It is tough to plan to avoid taxes when you never get to it before death.
2. Transfer large insurance policies to an irrevocable trust so they pass estate tax free to spouse and children.
3. Give assets away during life rather than waiting until death. Due to the difference in the calculation of gift tax and estate tax, paying gift tax is better than the estate tax.
The article mentions 2 more strategies of limited applicability to most people so I will not summarize them in the interest of brevity.