In general, people establish a trust for their own financial purposes or to financially protect their family members. Many different types of trusts exist that can accommodate the different reasons people have. At Getty Law Office, LLC, our trust attorney, Daniel F. Getty, will help you figure out which trust will work best for you and your needs. Most of the time the expense of Trusts aren't justified due to current laws. We will then guide you through the entire process, which––depending on the amount and extent of assets and the instructions accompanying them––can be either a relatively quick or enduring one.
To learn more about trusts and if you will need an estate planning lawyer in Ohio, contact Getty Law Office, LLC at our office today either using the online form or calling us directly at 937-610-5940 to schedule a consultation.
Trusts as Part of an Estate Plan in Ohio
A trust is a way for a property owner to pass their assets to someone else in order to protect the assets and to avoid the probate process, if applicable. The grantor, also referred to as the settlor, is the owner of the property who transfers it to the trustee. The trustee is the one who manages the property for the benefit of someone else, known as the beneficiary. The beneficiary is a person that will receive financial benefits from the trust.
Trusts can have multiple grantors, trustees, and beneficiaries. Typically, a different person or entity serves in each of these unique roles. However, usually the grantor and the initial trustee are the same person managing their own property, which becomes titled to the trust.
As part of an estate plan, a trust can be used to minimize estate taxes (for someone with extremely high assets). If well crafted, they can offer other benefits as well. A trust can keep your assets private when you die because a trust does not need to go through probate, which is a matter of public record. Also, a trust can protect assets from creditors or help beneficiaries who cannot manage money well. Some trusts are specific to manage life insurance policies and special needs individuals. Getty Law Office, LLC in Dayton, Ohio crafts all types of trusts depending on your specific need.
Whatever your need is for a trust, our estate planning lawyer Daniel F. Getty, Esq., can help make sure your trust is drafted in a way that benefits you and the intended beneficiaries.
Types of Trusts in Ohio
Specific types of trusts that people can use to protect their assets or pass their property on to someone else come in many forms. However, all of these trusts are either revocable or irrevocable.
Revocable trusts, also known as living trusts, allow the grantor to continue to alter the property in the trust. They can even revoke the trust entirely. This gives the grantor far more control over their property. With that control, though, comes a downside: because the grantor still has access to the property in the trust they created, their creditors can often reach into the trust to satisfy debts owed to them. Revocable trusts are not used to protect assets or avoid Medicaid. They are used, however, to reduce tax liability, protect assets in the long term for minor to adult children, or to avoid the probate process.
Irrevocable trusts, on the other hand, cannot be changed or revoked once the grantor creates one. The grantor relinquishes control over the assets in the trust. Creditors cannot touch those assets once they are removed from your estate. Often, the trustor gains in terms of tax and probate avoidance. Additionally, they can be used to protect assets from Medicaid, Provide for Special Needs persons, and avoid certain taxes and generation skipping.
Examples of Different Types of Trusts
Just to give you an idea of what types of trusts there are to address your specific needs, here's a list of some of the most common.
- Asset protection trust
- Charitable trust
- Constructive trust
- Special needs trust
- Spendthrift trust
- Tax by-pass trust
- Totten trust
You can also create a trust specifically for your pets, farmland, and even your gun collection. Often times, a trust is needed to simply take care of our loving animals after we pass. Specific instructions are often needed to care for them when you are gone. Daniel Getty at Getty Law Office, LLC in Dayton, Ohio provides animal care planning as part of its estate plans. We know how our animals are part of our family and at times a significant asset in the form of livestock, so we understand and appreciate the importance of providing for them after your passing.
Benefits of a Trust in Ohio
As mentioned, trusts are beneficial to avoid probate and taxes. They are also beneficial to provide for minor beneficiaries or provide long term assets to adult beneficiaries. By using a trust, assets of a trust pass directly to the trust's beneficiary when the trustor dies. This process means the assets do not pass through the expensive and time-consuming Probate Court– they are transferred basically automatically or with simple paperwork. As a result, certain estate taxes do not apply to trusts. Using a trust to pass property to your heirs can have tax advantages and can avoid the potential legal complications of dividing your estate or a contested will.
A trust also gives you the ability to create instructions and conditions for asset distribution upon your death–giving you control over your assets even when you are not here. So, if you have a beneficiary whom you want to finish college before disbursement of funds or if you want only a certain amount of funds disbursed at different times in the beneficiary's life, you get to decide those things. Further, you can identify a successor trustee––someone you know who can manage the trust according to the terms and conditions. It can also provide for your pets and animals after your passing.
Contact a Trust Attorney in Ohio Today
Whether you have some or a lot of assets, a trust may be just the thing you need to manage those assets and to decide what's done with them upon your death. Our trust lawyer in Dayton, Ohio, Daniel F. Getty, will consider your specific needs, review the assets you want to transfer to the trust, and guide you through the entire process, providing competent and skilled legal advice.
To learn more about trusts and how a specific one can benefit you, contact Getty Law Office, LLC either online or at 937-610-5940 to schedule a consultation.