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A Simple Guide for Ohio Families

a simple word with a big impact

WHICH IS BEST?

You Might Have this Duty and Not Even Know It

If you're considering setting up a revocable trust as part of your estate plan, you've probably heard the term "trustee" thrown around a lot. But what does a trustee actually do day-to-day? And why does it matter who you choose for this role? Let's break it down in plain English. Think of a trustee as the person who becomes the "manager" of your trust assets. They're the ones who step in to handle your affairs when you can't: whether that's due to incapacity or after you've passed away. The Basics: What Is a Trustee? A trustee is someone who has the legal responsibility to manage and distribute trust assets according to the instructions you've laid out in your trust document. In a revocable trust (also called a living trust), you typically start as your own trustee. This means you maintain complete control over your assets during your lifetime. But you also name a "successor trustee": someone who takes over when you can no longer manage things yourself. This person becomes crucial to making sure your wishes are carried out exactly as you intended. The Heavy Lifting: Core Trustee Responsibilities Asset Management and Protection When your successor trustee steps in, their first job is to locate and secure all trust assets. This isn't as simple as it sounds. They need to: Find all bank accounts, investment accounts, and other financial assets Locate real estate details and vehicle titles Track down life insurance policies and retirement accounts Identify business interests or other valuable property Get everything properly valued Imagine your elderly parent has been managing their own trust for years, but now they're in memory care. Your role as successor trustee means you'd need to figure out where all their assets are located: sometimes this includes safety deposit boxes, old investment accounts, or even cash hidden around the house. Financial Management and Investment Once they've secured the assets, trustees need to manage them wisely. This means: Making prudent investment decisions (or hiring professionals to help) Ensuring assets remain productive and don't just sit idle Protecting assets from unnecessary risks Managing day-to-day expenses like mortgage payments, insurance, and taxes Let's say your trust includes rental property. Your trustee would need to collect rents, handle maintenance issues, deal with tenant problems, and make decisions about whether to keep or sell the property based on what's best for the beneficiaries. Record Keeping and Tax Obligations This might be the least glamorous part of being a trustee, but it's absolutely critical. Trustees must: Keep detailed records of every transaction Track all income and expenses Maintain correspondence files File necessary tax returns (trust returns, estate returns, or final personal returns) Provide regular accounting to beneficiaries Think about it this way: if the IRS comes knocking three years later asking about a transaction, your trustee needs to be able to produce the documentation that shows everything was handled properly. The People Part: Working with Beneficiaries Communication and Transparency Being a trustee isn't just about managing money: it's about managing relationships too. Trustees have a legal obligation to: Keep beneficiaries informed about trust activities Respond to reasonable requests for information Provide regular accounting statements Explain decisions when asked This can get tricky when family dynamics are involved. Maybe your trust says one child should receive more than another, or distributions should be delayed until certain conditions are met. Your trustee needs to communicate these decisions clearly while staying neutral and following the trust terms. Making Distribution Decisions Depending on how your trust is written, your trustee might have significant discretion about when and how much to distribute to beneficiaries. They need to: Understand the specific terms of your trust document Make fair decisions when beneficiaries have competing interests Consider the long-term needs of all beneficiaries Balance current needs with future obligations For example, if your trust says funds should be used for your grandchildren's "health, education, maintenance, and support," your trustee needs to decide whether that expensive private school tuition request is reasonable or if the money should be saved for college instead. The Legal Stuff: Fiduciary Duties Here's where things get serious. Trustees are "fiduciaries," which means they have the highest legal duty to act in the best interests of the beneficiaries. This includes: Acting in good faith and with loyalty Avoiding conflicts of interest Not using trust assets for personal benefit Making decisions based solely on what's best for beneficiaries This fiduciary duty is a big deal. If a trustee messes up, whether through poor decisions, self-dealing, or just neglect, they can be personally liable for any losses to the trust. What Trustees Can't Do It's just as important to understand the limitations. Trustees: Cannot delegate their core responsibilities (though they can hire professionals to help) Have no authority over assets that aren't actually in the trust Cannot ignore the terms of the trust document Cannot favor some beneficiaries over others unless the trust specifically allows it Choosing the Right Trustee: Why It Matters Given everything we've covered, you can see why choosing the right successor trustee is so important. You need someone who is: Trustworthy and reliable Good with financial matters (or willing to get help) Able to handle family dynamics diplomatically Organized enough to manage detailed record-keeping Available and willing to take on the responsibility Many people automatically think of their oldest child or their spouse, but those might not always be the best choices. Sometimes a younger child who's good with money, a trusted friend, or even a professional trustee might be better suited for the role. When Things Get Complicated Real life is messy, and trustees often face situations that aren't clearly covered in the trust document. Maybe there's a family business that needs ongoing management, or beneficiaries who disagree about distributions, or unexpected expenses that require tough decisions. This is why many trustees work with attorneys, accountants, and financial advisors. They're not expected to be experts in everything, but they are expected to seek appropriate professional help when needed. The Bottom Line for Ohio Families Setting up a revocable trust is just the first step. The success of your estate plan really depends on having the right person in place to carry out your wishes. Take time to think carefully about who would be best suited to serve as your successor trustee, and make sure you have honest conversations with them about what the role involves. Remember, being a trustee is a significant responsibility that can last for many years. The person you choose will have considerable authority over your assets and a major impact on your beneficiaries' financial future. If you're working on your estate plan and want to discuss trustee selection or any other aspects of setting up a revocable trust, consider talking with an experienced estate planning attorney who can help you think through your specific situation and family dynamics. Your trustee choice today shapes your family's tomorrow; make it count.

Choosing someone to be your power of attorney agent is one of the important decisions you'll make in your estate planning journey. It's also one that many Ohio families rush through without having the crucial conversations that could prevent future family conflicts, financial mishaps, or worse. Your power of attorney agent will literally have the legal authority to make crucial decisions on your behalf. That's a big responsibility – for both of you. The good news? Having the right conversations upfront can make all the difference. Here are six essential questions you need to ask your potential power of attorney agent before you sign those documents. Trust me, taking the time now will save everyone stress later. Question 1: "Do You Really Understand What You're Agreeing To?" This might sound obvious, but you'd be surprised how many people agree to be someone's power of attorney agent without fully grasping what they're signing up for. Your agent needs to understand that they're taking on a fiduciary duty – which is legalese for "you have to put my interests first when using this power, always." What does this mean in real terms? Your agent will need to: Keep detailed records of every financial transaction they make on your behalf Make decisions based on what's best for you, not what's convenient for them Stay within the specific powers you've given them (no freelancing!) Communicate regularly with you and your family about important decisions Make sure your potential agent knows this isn't just helping out a friend or family member – it's a legal responsibility that courts take seriously. Question 2: "Are You Prepared to Handle Family Drama?" Here's something they don't tell you in those generic power of attorney forms: family dynamics can get messy fast when someone becomes incapacitated. Your agent might find themselves caught between siblings who disagree about your care, or dealing with family members who question their decisions. Ask your potential agent: How would you handle it if my other family members disagree with a decision you make? Are you comfortable standing your ground when you believe you're acting in my best interests? Can you remain calm and rational during emotional, high-stress situations? If your potential agent gets uncomfortable just talking about conflict, they might not be the right choice. You need someone who can stay focused on your needs even when emotions run high. Question 3: "What Decisions Are You Comfortable Making?" Not everyone is cut out to make every type of decision. Some people are great with financial matters but squeamish about healthcare choices. Others are natural caregivers but wouldn't know a stock portfolio from a to-do list. Walk through the specific powers you're considering granting: Financial decisions : Paying bills, managing investments, buying or selling property Healthcare choices : Medical treatments, living arrangements, end-of-life care Legal matters : Signing contracts, dealing with insurance companies, tax issues Be honest about your agent's strengths and limitations. It's perfectly fine to have different people handle different areas – in fact, it's often better that way. Question 4: "Can You Commit the Time This Might Require?" Being a power of attorney agent isn't a once-in-a-while favor. Depending on your situation, it could require weekly or even daily attention. Your agent needs to understand the time commitment and honestly assess whether they can handle it alongside their own responsibilities. Consider asking: Do you have the time to manage my affairs properly? What would you do if this responsibility conflicts with your work or family obligations? Are you prepared for this to potentially last for years? If your first choice is a busy executive who travels constantly or a new parent juggling three kids under five, you might want to consider alternatives or backup options. Question 5: "How Will We Stay in Communication?" This is huge, and it's where a lot of power of attorney relationships go sideways. Your agent needs to keep you in the loop about decisions (when you're able to be involved) and should also maintain open communication with trusted family members. Establish expectations about: How often you want updates about financial decisions Which family members should be kept informed What kinds of decisions require consultation versus independent action How urgent matters should be handled Some families set up regular check-ins, while others prefer updates only when significant decisions arise. Figure out what works for your family and make it clear from the start. Question 6: "Do You Have Any Concerns or Questions About This?" This is your chance to have an open, honest conversation about any worries or hesitations your potential agent might have. Maybe they're concerned about family relationships, worried about making mistakes, or uncertain about specific aspects of the role. Creating space for these concerns accomplishes two important things: You get insights into potential problems before they become actual problems Your agent feels heard and supported, which sets up a better working relationship Some common concerns include: "What if I make the wrong decision?" "How will other family members react?" "What happens if I accidentally do something that costs money?" "Am I personally liable for decisions I make?" Address these concerns honestly and consider discussing them with an estate planning attorney who can provide specific guidance for your situation. Getting Professional Help with Your Power of Attorney Setting up a power of attorney isn't just about filling out forms – it's about creating a plan that protects you and your family while giving your agent the tools they need to help you effectively. The conversations we've outlined here are just the beginning. Working with an experienced estate planning attorney can help you navigate the specific requirements in Ohio, draft documents that clearly outline your agent's powers and limitations, and create safeguards that protect everyone involved. Moving Forward with Confidence Having these six conversations might feel awkward at first, but think of them as an investment in your family's peace of mind. The time you spend now clarifying expectations, addressing concerns, and ensuring everyone's on the same page will pay dividends later when your power of attorney actually needs to take action. Remember, choosing the right power of attorney agent isn't about picking the person you like best or the one who volunteers first. It's about selecting someone who truly understands the responsibility, has the skills and time to handle it properly, and shares your values when it comes to important decisions. Take your time with this decision, have these important conversations, and don't be afraid to seek professional guidance. Your future self – and your family – will thank you for taking care of this properly from the start. If you're ready to start the power of attorney process or have questions about estate planning in Ohio, we're here to help . Sometimes having an experienced guide makes all the difference in getting this important protection in place.

Why a Medicaid Spend Down Might Not Mean What You Think It Means When families hear the term "Medicaid spend down," many immediately think it means giving away assets to qualify for benefits. This seemingly logical conclusion has led countless Ohio families down a dangerous path that can delay Medicaid eligibility for years. The reality is far more complex, and the consequences of getting it wrong can be devastating. The Dangerous Misconception About Gifting Here's what many people think: "If I have too much money to qualify for Medicaid, I'll just give it to my children or grandchildren. Problem solved!" Unfortunately, this approach often backfires spectacularly. Medicaid spend down doesn't mean gifting away your assets. It means spending excess resources on legitimate, allowable expenses that benefit you or your loved ones directly, in a Medicaid approved manner. It also means converting countable resources to non-countable resources. When you gift assets to family members or friends, you're not "spending down", you're creating what Medicaid calls a "improper transfer" The confusion stems from the word "spend." People naturally assume it means the money can go anywhere, as long as it leaves your accounts. But Medicaid has very specific rules about what constitutes acceptable spending versus prohibited gifting. Ohio's Five-Year Lookback Period: Your Financial History Under a Microscope In Ohio, Medicaid examines every financial transaction you've made for the past five years when you apply for long-term care benefits. This lookback period exists specifically to identify gifts and transfers that were made to artificially reduce assets. Every check you've written, every bank transfer, every cash withdrawal gets scrutinized. If Medicaid finds that you gave away money or property during this period, they calculate a penalty period during which you'll be ineligible for benefits. Here's how the penalty calculation works: Medicaid takes the total amount you gifted and divides it by Ohio's Medicaid penalty divisor (approximately $7,787 in 2025). The result is the number of months you'll be ineligible for Medicaid coverage. For example, if you gave your daughter $77,870 two years ago, you'd face a 10-month penalty period ($77,870 ÷ $7,787 = 10 months). During those 10 months, you'd need to pay for your care entirely out of pocket. Here is the kicker: the penalty period does not begin until you are otherwise eligible for Medicaid, meaning you'll have to privately pay for your care AFTER you reach the Medicaid eligibility threshold, usually less than $2,000. That is some painful math. The emotional toll extends beyond finances. Families often feel betrayed by the system, angry at themselves for not knowing the rules, and guilty about the burden placed on other family members who must now cover care costs. What Actually Counts as Proper Spend Down Legitimate Medicaid spend down involves purchasing items or services that directly benefit you and don't violate the gifting rules. Acceptable spend down strategies include: Medical and Care Expenses: Paying for dental work, hearing aids, medical equipment, or home modifications for accessibility. These expenses reduce your assets while improving your health and quality of life. Home Improvements: Upgrading your home's accessibility, installing medical equipment, or making repairs that benefit your daily living. However, the improvements must be reasonable and necessary, and the price needs to be fair. Prepaid Funeral and Burial Expenses: Ohio allows you to prepay for funeral services and burial costs, removing these funds from your countable assets while ensuring your final wishes are honored. There are strict limits on this though, as only $15,000 is exempt (in 2025). Personal Care Items: Purchasing a reasonable supply of clothing, personal care items, and other necessities for your use. Debt Repayment: Paying off legitimate debts like credit cards, mortgages, or medical bills counts as proper spend down since you're using your money to settle your own obligations. What doesn't qualify: Giving money to children, paying off someone else's debts, making loans to family members, or purchasing items primarily for other people's benefit. Also, the Medicaid numbers vary from year to year, and sometimes from month to month. It is important to know the exact numbers that will apply to your spend down. The Income vs. Asset Confusion Another common misconception involves confusing income spend down with asset spend down. There are different eligibility rules for assets and income, and the income spend down process is vastly different from the asset spend down required for long-term care eligibility. An excess monthly income spend down requires a special type of trust called a Qualified Income Trust, also known as a Miller Trust, which takes care of excess income on a monthly basis. An asset spend down is a one-time reduction of your resources to meet eligibility limits. Gifting doesn't help with either situation, but the confusion between these processes leads many families to make costly mistakes. Why Professional Guidance Is Essential Medicaid planning requires understanding complex federal regulations, Ohio state rules, and local administration practices. The rules change periodically, exceptions exist for certain situations but not for others, and the application process itself can be daunting. An experienced Medicaid planning attorney can help you: Identify legitimate spend down opportunities specific to your situation Navigate the complex application process correctly Understand how proposed gifts might affect your eligibility Develop long-term care strategies that protect both you and your family Respond to Medicaid requests for additional documentation The cost of professional guidance pales in comparison to the potential penalties for misunderstanding the rules. Many families discover this too late, after they've already created penalty periods that could have been avoided. Protecting Your Family's Future The key to successful Medicaid planning is understanding that a spend down isn't about making assets disappear: it's about using them wisely to benefit you while meeting program requirements. Gifting assets might seem like a shortcut, but it usually creates more problems than it solves. If you're concerned about qualifying for Medicaid or protecting family assets, start the conversation with qualified professionals before making any major financial decisions. The five-year lookback period means that planning ahead is crucial, but even families facing immediate needs have options. Your family's financial security shouldn't be left to guesswork. Understanding what a Medicaid spend down really means, and what it doesn't, can make the difference between protecting your family's resources and creating years of financial hardship. Don't let misconceptions about a Medicaid spend down jeopardize your family's future. The rules are complex, but with proper guidance, you can navigate them successfully while ensuring you receive the care you need and deserve.

Here is a Handy Graphic to remind you what to bring to your meeting with your probate attorney. 

Preparing for your first meeting with a Medicaid attorney can feel overwhelming, especially when you're already dealing with concerns about long-term care or helping a loved one navigate complex healthcare needs. The good news? A little preparation goes a long way toward making your consultation both productive and less stressful. When you walk into that meeting organized and ready, you'll get more value from your time together. Plus, your attorney can provide better, more targeted advice when they have all the information they need upfront. Let's walk through exactly how to prepare so you feel confident and ready for a successful meeting. Essential Documents to Gather Think of this document gathering process as creating a financial snapshot of your (or your loved one's) current situation. Your Medicaid attorney needs to see the complete picture to help you make the best decisions. Financial Records (Last 5 Years) Start with your bank statements, investment accounts, and any other financial records from the past five years. Ohio's Medicaid program has a five-year look-back period, which means they'll carefully scrutinize your financial transactions during this time to ensure you haven't improperly transferred assets. Bring statements from checking accounts, savings accounts, CDs, stocks, bonds, and retirement accounts like 401(k)s or IRAs. Don't forget about less obvious financial documents too. Life insurance policies with cash value, annuities, and even burial insurance policies all matter. If you've sold assets or made large purchases recently, bring those records as well. Property and Asset Documentation Gather deeds for any real estate you own, whether it's your primary residence, vacation property, or investment real estate. Vehicle titles, boat registrations, and ownership papers for any valuable personal property should also make the pile. If you have any business interests, bring documentation showing your ownership percentage and the business's current value. This includes partnerships, LLCs, or corporations where you hold an interest. Income Information Collect recent pay stubs if you're still working, Social Security award letters, pension statements, and documentation of any other regular income sources. This includes rental income, royalties, or income from trust distributions. Fill Out That Intake Sheet Most attorneys have intake sheets that they require you to fill out prior to your meeting. Your attorney isn't being nosy, they are asking for specific types of information which they need in order to properly assess your case. If you skip it, or leave out important information, your attorney will be less able to advise you, or might give you inaccurate advice which could result in a Medicaid denial or the imposition of penalty periods. Legal Documents Bring copies of any existing estate planning documents like wills, trusts, powers of attorney, or advance directives. If you've previously worked with an attorney on Medicaid planning or asset protection , bring those documents too. Healthcare and Insurance Records Your Medicare card, any supplemental insurance policies, long-term care insurance, and recent medical diagnosis records will help your attorney understand your current healthcare situation and future needs. Questions to Consider Before Your Meeting Preparing thoughtful questions ahead of time ensures you don't forget important topics during your consultation. Here are key areas to think about: Medicaid Eligibility Questions Ask about your current eligibility status and what changes might be needed to qualify. Understanding Ohio's specific income and asset limits for Medicaid can help you plan accordingly. You might also want to know about the timing: how long the application process typically takes and when you should start planning. Asset Protection Strategies If you have assets above Medicaid's limits, ask about legal strategies to protect them while still qualifying for benefits. This might include discussions about spend-down strategies, exempt assets, or whether certain planning tools like trusts might be helpful. Ask About Ohio's Medicaid Estate Recovery Program Ohio has a very aggressive Medicaid Estate Recovery program, which is when Medicaid will demand reimbursement for all expenditures Medicaid covered during a recipient's lifetime, after they pass away. Long-Term Care Planning Discuss your preferences for care: whether you'd prefer to stay at home with support services or move to an assisted living facility if needed. Understanding how Medicaid covers different types of care can help you make informed decisions about your future. Family Impact Questions If you're married, ask how Medicaid planning might affect your spouse's financial security. Many people worry about leaving their spouse without sufficient resources, and there are specific protections in place for spouses of Medicaid recipients, along with some creative planning options. Timeline and Process Questions Understanding the timeline for different strategies helps with planning. Some asset protection strategies have waiting periods, while others can be implemented more quickly. Tips for a Productive Meeting Be Honest About Your Situation Your attorney can only help you effectively if they understand your complete situation. Don't hide assets or income: your attorney needs the full picture to provide proper guidance, and everything will come out during the Medicaid application process anyway. Come with Realistic Expectations Medicaid planning isn't about hiding assets illegally or gaming the system. It's about using legitimate legal strategies to protect what you can while ensuring you get the care you need. Good attorneys will always work within legal boundaries. Take Notes Bring a notebook and take notes during your meeting, or ask if your attorney has videos, blog posts or informative materials that you can review after your meeting. Legal concepts can be complex, and you'll want to remember the advice you receive. Many people find it helpful to bring a trusted family member who can help remember important points. Ask About Next Steps Before leaving, make sure you understand what happens next. Do you need to gather additional documents? Are there specific deadlines for taking action? Understanding your next steps prevents delays in implementing your plan. What to Expect During Your Consultation Most initial consultations last between 30 to 90 minutes, giving you plenty of time to discuss your situation thoroughly. Many Ohio Medicaid planning attorneys offer both in-person and virtual consultations, so choose the format that's most comfortable for you. Your attorney will review your financial situation, explain Ohio's specific Medicaid rules, and discuss potential strategies that might work for your circumstances. They should explain complex legal concepts in plain English and be patient with your questions. Don't be surprised if your attorney identifies issues you hadn't considered. For example, they might notice that certain assets could be repositioned more advantageously, or they might suggest coordinating your Medicaid planning with your broader estate planning goals. Understanding Ohio's Specific Requirements Ohio has some unique aspects to its Medicaid program that your attorney will explain during your meeting. The state has specific rules about exempt assets, allowable transfers, and income limits that differ from other states. For example, Ohio allows certain types of asset transfers between spouses that might not be permitted in other states. Understanding these nuances helps you make the most of available planning opportunities. Your attorney should also explain how Ohio's Medicaid program coordinates with Medicare and any supplemental insurance you might have. This coordination affects what services are covered and how much you might pay out of pocket. Making the Most of Your Investment Remember that this consultation is an investment in your future security and peace of mind. Coming prepared helps ensure you get maximum value from your time together. If your situation is complex, don't expect to resolve everything in one meeting. Good Medicaid planning often requires time to implement properly, and your attorney might recommend a series of steps taken over time. The goal isn't just to qualify for Medicaid: it's to create a comprehensive plan that protects your interests, provides for your care needs, and gives you confidence about your future. With proper preparation and the right legal guidance, you can navigate Ohio's Medicaid system successfully while protecting what matters most to you and your family. Taking time to prepare for your consultation shows respect for your attorney's expertise and maximizes the value of your meeting. When you come organized and ready to engage, you're setting yourself up for the best possible outcome in your Medicaid planning journey.