Misconceptions about what happens to a person’s property after death often complicates matters for grieving families. These false expectations can cause unnecessary friction among heirs as well as legal problems. Understanding the realities of estate administration can help families better prepare for the process in Ohio.
1. Wills can keep estates out of probate
A will is a set of instructions that can direct who gets what, but it does not avoid probate itself. Assets can bypass probate through other estate planning tools such as living trust, transfer-on-death, payable-on-death accounts or a form of joint ownership.
2. Smaller estates do not need planning
The size of an estate matters when it comes to planning or administration, especially for smaller properties. Such estates are more prone to shrink in value when it goes through an evaluation.
3. Debts disappear once a person dies
The debt attached to an estate does not vanish overnight. In Ohio, creditors can make claims against the said estate within a certain time period. This can significantly change the property value before the heirs receive their inheritance. An evaluation of the property can be helpful in determining the asset’s actual value.
4. The government seizes everything belonging to the decedent
The assets of a deceased without a will enter the state of intestacy. The government does not seize any assets, if the decedent has living relatives. If a person dies without a will and no legally recognized heirs can be identified, property may eventually pass to the state under Ohio’s escheat laws.
5. Avoiding probate equals to avoiding taxes
Avoiding probate does not mean that the property is exempt from taxes. Larger estates may be subject to federal estate tax, depending on applicable federal exemption amounts. Transfer of properties through probate or a trust does not exempt them from taxes.
6. Executors have full control over the estate
The executors cannot take over the estate at their discretion. They have a fiduciary duty to act in the best interests of the property and its beneficiaries. Executors have to execute the will under the supervision of the probate court.
Understanding probate law over believing myths
Ohio estate administration can be confusing, but it is in the best interest of the heirs to understand it. A legal professional might be able to explain probate law to you and your family with greater clarity. This knowledge can help protect your loved one’s estate.
