In December 2012, the Ohio legislature approved the Ohio Legacy Trust Act. This Act took effect on March 27, 2013. The general purpose of the law is to provide Ohio residents with more protection against creditors. Some key provisions of the Legacy Trust Act include:

• The Homestead Exemption is increased from $20,200 to $125,000. This means that up to $125,000 of the value of a house is protected from creditors
• Inherited IRAs are protected from the reach of creditors
• 529 Education Savings Accounts are protected from creditors
• Individuals are permitted to execute asset protection trusts known as Legacy Trusts

Creditors will be prohibited from bringing an action against any property held in a Legacy Trust unless the creditor can prove the trust was created with the specific intent to defraud a creditor. Among other requirements under the Act, a Legacy Trust must have at least one trustee who is an Ohio resident.

To learn more about how you can take full advantage of this law, contact an estate planning attorney at DLM Legal today for a free initial consultation: info@dlmlegal.com or 216.635.0002.