Understanding trust law in Dayton, Ohio can seem like a huge undertaking. While the law may seem complex, that shouldn’t hinder you from setting up a vehicle that can avoid probate and secure the financial future of your family and beneficiaries.
Before you get started on creating your trust, it helps to understand a few basic facts about their formation and the laws that govern them.
What is a Trust?
A trust is a separate legal entity that holds title to financial assets and property for a beneficiary.
The person who creates the trust, often referred to as the settlor or grantor, determines the rules regarding the administration of the trust; how the trust is to operate, who will benefit, and how and when the trustee will perform certain actions. When creating a trust you appoint a trustee to manage the trust and its assets. This person maintains the ability to manage and disperse assets held by the trust according to the rules you have laid out.
Oftentimes, people appoint themselves trustee of their own trusts. If you choose to maintain control of your trust, it is a good idea to appoint a successor in the event of your incapacity or death.
Why Should I Create a Trust?
There are many different kinds of trusts that a person can create depending on their goals. Estate planning often involves setting up revocable or irrevocable trusts.
Revocable trusts, sometimes referred to as living trusts or revocable living trusts, are typically set up to pass assets outside of probate, while allowing you to retain control of your property during your lifetime. If your assets have been appropriately titled in the name of your trust, those assets will avoid probate upon your death. The term “revocable” refers to your ability to change the terms of the trust if family circumstances or your intentions change.
Irrevocable trusts are often used for estate tax planning, charitable giving, or asset protection planning while also avoiding probate. However, once you establish and fund the trust, you lose some control over the assets and dispositive provisions. People are often surprised to discover that revocable living trusts do not protect assets from their creditors or from paying nursing home expenses and that they must use a type of irrevocable trust.
Probate is not always bad, but avoiding probate through careful planning can minimize the emotional and financial expenses your loved ones will pay after you die.
Each type of trust has a host of benefits that may be more attractive to a person depending on his or her particular financial situation. At Wiggins & Hall, we can help you understand trust law in Dayton, Ohio and help you choose which option works best for you.
Don’t Go it Alone
Trying to understand trust law in Dayton, Ohio doesn’t have to limit what you can do with your assets and property. For help in setting up a trust that will benefit your family, beneficiaries, or charities for generations to come, contact Wiggins & Hall for a complimentary initial consultation.
The experienced estate planners at Wiggins & Hall are here to help you get started. Our attorneys have more than a full understanding of trust law in Dayton, Ohio and can help you to establish and maintain a trust that meets all of your individual needs.
We are here to help you through the entire process, so don’t wait. Contact us today.