Far too many people fail to take advantage of the many advantages of using trusts as part of their estate planning. Trusts have many benefits, including protection of assets, simplification of estate settlement, and tax advantages. Nor are they just for people with large estates; even modest estates can benefit from establishing a trust.
While trusts do not have to be overly complex, and can be established at a very reasonable cost that can be covered by their many advantages, establishing a trust is always best done with the help of an experienced estate planning attorney in Cleveland.
Benefits of establishing a trust
To properly explain why the effort of establishing a trust is worth the effort, we first look to the advantages:
- Protection of assets: Depending upon the type of trust you establish, a trust can protect your assets from creditors or other liabilities, both in life, and after your passing. For example, many types of assets held in trust may not be claimed by creditors seeking to be paid from the proceeds of your estate.
- Simplification of estate settlement: Assets held in trust, or the income of those assets, can be utilized by you during your lifetime and can pass to heirs without the need to go through the probate process. This simplified process is typically quicker, provides you and your heirs with privacy outside the public probate process, and ensures that your chosen heirs will benefit from your estate.
- Tax advantages: There can be many tax advantages to establishing a trust. Again, depending on what type of trust you choose, and provided it is properly established, these advantages can leave more of your estate to the benefit of your chosen heirs.
The many advantages far outweigh the cost and effort of establishing a trust, even after the cost of professional legal help. Properly planning your estate with the help of an
estate planning attorney in Cleveland can also help you prepare for long-term care, medical decision making, and other considerations that can offer peace of mind during your lifetime and help ensure that your loved ones will not face heart-wrenching decisions and a lengthy estate settlement without benefit of knowing and understanding your wishes.
Ohio Trust Requirements - Properly Choosing and Establishment
Three of the most common and useful types of trusts are:
- Revocable Living Trusts: This type of trust manages assets under your control during your lifetime. You can also name a successor trustee upon your death or incapacitation. These trusts can continue to manage the assets in accordance with your wishes, or can outline how assets are to be distributed upon your death.
- Irrevocable Trusts: These trusts are irrevocable, except in accordance with trust documents. While this forfeits control of the assets, they also offer better protection from creditors and certain tax advantages.
- Special-Needs Trusts: Those looking to care for children or loved ones with special needs may benefit from this type of trust. These trusts can help provide for a loved one without impacting government benefits, such as Social Security Disability, Social Security Income, Medicare and Medicaid.
However, failure to choose the proper type of trust, failure to properly establish the trust, or mistakes in choosing the types of assets to put in trust, can result in unnecessary complications and/or unrealized benefits.
Establishing a trust that complies with state and federal law is a complex undertaking. The
Ohio Trust Code Compliance manual published by the Ohio Bar Association is nearly 600 pages in length. This is part of the reason why trusts are often seen as overly complicated and complex. However, it is not necessary that you understand how to properly establish a trust in accordance with state and federal law. Only that you understand using an online document maker or hiring an attorney who does not focus exclusively on estate and probate law, can result in a failure to realize some or all of the many benefits of a trust.
Choose an experienced estate planning lawyer in Cleveland. Set up a confidential free or low-cost consultation. And let them help you realize the many advantages of utilizing a trust as part of your estate plan. You will be so glad you did!
Daniel McGowan represents clients in probate and estate matters throughout the Cleveland area, including Lakewood, Rocky River, Fairview Park, Shaker Heights, Cleveland Heights, South Euclid, East Cleveland, Linndale, Brooklyn, Parma, Brook Park. Newburgh Heights, Cuyahoga Heights, Brooklyn Heights, Warrensville Heights, Maple Heights, Garfield Heights, Bratenahl and Euclid.
Call 216-242-6054 today for a free and confidential consultation.
