Estate and Probate Attorney in Cincinnati Ohio

What does an Executor do first?

cmrk-admin — Wed, 30 Nov 2011 16:00:51 +0000

(A Preliminary Executor Checklist for Ohio)

The following are the initial steps an Executor can take to begin the Administrative process:

Gather all records of bank accounts, real estate, personal property, business assets, life insurance, investments, retirement accounts (IRA, 401(k), Roth IRA), and other assets.

Collect all records of utilities, credit card statements, loan information, mortgage records, medical records, and any other debts owned by the deceased.

Request a copy of the homeowner’s insurance and car insurance to confirm coverage is still in place. (Also, review the Homeowner’s insurance to determine if there were any valuable items listed as a scheduled asset such as jewelry or artwork).

Retrieve certified copies of the death certificate. This is typically provided by the funeral home.

Contact a qualified Cincinnati Probate lawyer to advise you on how to proceed with administering the Estate. As an Executor, you have personal liability if a mistake is made with regard to the assets or liabilities.

How is An Attorney Compensated?

admin — Tue, 29 Mar 2011 09:14:50 +0000

The actual costs and fees will depend upon the size of the estate, the nature of your assets, and the attorney that you retain to represent the estate. Additional issues may arise that could increase the cost of administration, including will contest, estate tax audits, or the transfer of difficult assets such as closely held family businesses, or out of state real estate. Attorneys will either charge an hourly rate or a percentage of the estate as their fee.

Additional Information on Statutory Fees

Lawyers charge fees for their services under three different formats. They are hourly rates, fixed fee rates, and percentage of the estate rates. Which structure is appropriate depends on a number of factors. These factors include the identity of the beneficiaries, the complexity of the estate, the risk of will contest and litigation, the size of the estate, and whether it or some part of the estate will go through probate. Generally, it is less expensive to administer an estate that does not go through Probate Court.

The State of Ohio created a fee guide line for Probate administration. Local courts also set fee guidelines, review fee applications, and handle fee disputes. In general the fee guideline under Ohio law is:

5.5% of the first $50,000
4.5% of the next $50,000
3% of the next $300,000
2% of everything over $400,000
1% of assets not going through Probate

When engaging an attorney for a probate matter get a clear understanding for how the attorney will be charging a fee, what is included in that fee, and what is not included and how that will be charged. Many local Probate Courts require a written fee agreement. It is good practice to have a written fee contract so there is no dispute which could hold up the distribution of the estate or cost the estate additional fees and time in sorting it all out.

What Legal Services are Needed for Probate?

admin — Tue, 29 Mar 2011 09:13:52 +0000

Examples of services provided to executors and administrators handling the administration of a decedent’s estate include:

	Evaluation of the need for probate of a will and qualification of the executor/administrator and assistance with probate and qualification, if necessary.
	Identifying estate assets and assisting with actions to obtain possession and control of the assets.
	Identifying resources for property appraisal and sale, if necessary.
	Assisting with income tax and estate tax requirements, or working with third party CPAs, if needed.
	Assisting with the handling of creditor claims and evaluating enforceability of claims.
	Advice regarding duties and responsibilities of executors, administrators, and trustees.
	Representation on disputed creditor claims.
	Assisting with the preparation of the inventory and accountings for the estate.
	Advice regarding family allowance, exempt property, and homestead exemption property issues.
	Representation regarding estate litigation.
	Representation regarding distribution proceedings.
	Advice regarding proper distribution of estate assets under a will or applicable law.
	Handling or providing assistance regarding ancillary administration in other states.

Am I Entitled to Any Benefits From My Spouses Employer?

admin — Tue, 29 Mar 2011 09:12:37 +0000

Frequently, employers will have death benefits as part of a retirement package. Additionally, insurance, health plans, and dental plans can sometimes be continued by a surviving spouse. This can be the case whether the employee died as an employee or...
Read more

How is Life Insurance Collected?

admin — Tue, 29 Mar 2011 09:11:30 +0000

Life insurance is collected by contacting the insurance company who sold the life insurance policy. The insurance company will send a claim form which must be filled out and signed by the executor if payable to the estate or the designated beneficiary. The claim form must be returned with the insurance policy and a certified copy of the death certificate.

Under Ohio law, the insurance company has 30 days to make payment or they must pay interest. Sometimes the company will send you a check. Otherwise, it will send you a checkbook which you can write checks against until the insurance is used up.

What are My Rights to Social Security?

admin — Tue, 29 Mar 2011 09:10:43 +0000

A surviving spouse or dependent child may be entitled to social security benefits. The executor or spouse needs to contact the Social Security Administration to stop the decedent’s social security payments and to determine the rights of the spouse and minor children.

A surviving spouse may collect his or her benefit or the deceased spouse’s benefit, whichever is higher. The surviving spouse does not get both. Additionally, benefits can be paid to minor children under the age of 18, up to 19 if in high school, and any age if disabled before age 22.

How are Retirement Plans Collected?

admin — Tue, 29 Mar 2011 09:09:58 +0000

Retirement accounts and IRAs are not part of the probate estate unless the decedent failed to designate a beneficiary. If there is no named beneficiary or if the beneficiary is “my estate”, the retirement plan will pass per the terms of the will. Otherwise, the named beneficiary will receive the retirement asset. Retirement accounts and IRAs are paid directly to the named beneficiary outside of probate. They are subject to both estate taxes and income taxes. Because the beneficiary may be entitled to delay the payment of income tax, it is extremely important to consult with your attorney or tax advisor before you withdraw any money from the retirement account or IRA. There are very complex rules concerning the income tax aspect of these accounts.

How the IRA is taken and taxed first depends upon the type of beneficiary. A surviving spouse has more options including the ability to rollover the IRA into his or her own IRA and delay taking distributions until they reach age 70 ½. If any other person is the beneficiary, they may take a lump sum distribution and close out the inherited IRA or may set up a decedent IRA or beneficiary IRA and rollover the account into this new account. Once the decedent/beneficiary IRA is set up, a beneficiary may take distributions over their life expectancy or fasted if needed. There is no 10% penalty on distributions from a decedent/beneficiary IRA. However, distributions are subject to income tax.

Warning: These rules are complicated; you must get good tax advice to delay income taxes and to avoid penalties.

Federal Estate Tax Return

admin — Tue, 29 Mar 2011 09:09:23 +0000

Whether an estate has to pay federal estate tax also depends on the size of the estate, and the nature and extent of any estate planning that was done. If everything is left to a surviving spouse, there is no estate tax because of an unlimited marital deduction. Estate tax returns must be filed even though no tax is due. If the decedent was not married and the estate exceeds $5,000,000, (2011 and 2012) estate taxes are paid to the federal government. The current federal estate tax rate is 35%. Thus if a person dies with an estate of $6,000,000 which is all going to a child, the tax bill would be $350,000.

Currently the federal estate tax rules are in a state of uncertainty. In 2013, the credit goes back to $1,000,000 if Congress does not change the rules.

Ohio Estate Tax Return

admin — Tue, 29 Mar 2011 09:08:45 +0000

Whether an estate has to pay Ohio estate tax depends on the size of the estate and the nature and extent of any estate planning that was done. If everything is left to a surviving spouse, there is no estate tax because of an unlimited marital deduction. Estate tax returns must be filed even though no tax is due. If the decedent was not married and the estate exceeds $338,333, estate taxes are payable. Ohio taxes the net estate (gross estate less the deductions) at the following rates.

Up to $338,333 – tax free
$338,334 to $500,000 – 6% tax rate
Over $500,000 – 7% tax rate

Even if the estate is less than $338,333, an Ohio Form 22 must be filed if there is real estate involved in the estate. This is public notice that there was no Ohio estate tax due on the estate to remove any Ohio estate tax lien against the real estate.

Click here for a link to a visual representation of the current Ohio Estate Tax Law.

Estate Income Tax Return

admin — Tue, 29 Mar 2011 09:08:19 +0000

An estate may be required to file an income tax return for the income and deduction received during the period of administration. The form is IRS Form 1041. An estate can elect a fiscal year. Thus, if a person dies on March 10^th of a given year, the fiscal year for the estate is March 10^th through February 28^th of the next year. If income is received and the estate is not closed by the end of the period, then the estate pays income tax on the income earned. If the estate is closed by the end of the period, any income or deductions are passed through to the beneficiaries who inherited the estate. Thus, if there was a dividend check of $2,000 received by the estate and there were two beneficiaries, each would include $1,000 in dividends on their Form 1040 in the year the estate closes.