If you are considering the creation of a trust, you must know the rules and requirements under the Ohio trust code. There are rules for different types of trusts, for what property a trust can own, and for how trusts operate. The law also provides information on who can create a trust.
It is imperative that you follow the law and make informed choices when it comes to trust creation so you can get the protections that you expect from a trust. Zimmer Law Firm knows the Ohio trust code inside and out and we provide comprehensive assistance to those who wish to use trusts as part of an asset protection strategy or as part of their legacy plan or estate plan. Give us a call today to find out more about how our legal team can help with the trust creation process.
Who Can Make a Trust Under the Ohio Trust Code?
The Ohio Trust Code sets forth general requirements for creation of a trust in section 5804.02. There are many different requirements for creating a legally valid trust, and this section of the trust code also offers details on who can create a trust. According to the relevant law, a trust is created if:
- The settlor of the trust (which is the legal name for the trust creator) has capacity to create a trust.
- The settlor indicates his or her intent to create a trust.
- The trust named a definite beneficiary, unless it was a charitable trust; a trust for the care of an animal or a specific type of trust for a non-charitable purpose. A beneficiary is definite if you can determine who that person is, either now or in the future.
- The trustee has duties to perform which are specified in the trust document.
- The sole trustee and sole beneficiary are not the same person.
A person is generally considered to have capacity to create a trust as long as he or she is an adult, which means he is at least 18-years-of-age or older. The person also must be of sound mind, which means he knows and understands the extent of his property and he knows what it means to make the trust.
While a trust can be challenged on the basis of the fact the settlor was not of sound mind, such challenges are usually less successful than similar challenges when a will is made. This is because a person who creates a trust usually has continuing involvement with the trust after it is created, so it is clearer that he or she intended to make the trust. You should make a trust as soon as you have decided that this is the right solution for you, so you can ensure you get your trust created before something happens that leaves you without the capacity to act.
Should You Make a Trust?
Just because you can make a trust under the Ohio trust code does not necessarily mean that you should make a trust. Trusts are powerful legal documents that serve lots of important estate planning purposes. However, there are costs associated with creating and maintaining trusts. There are also limits on the kinds of property that can be held in certain types of trusts.
If you are thinking about making a trust, the best thing to do is talk with a lawyer about whether this is a good idea for you and about what type of trust is right for you. You can use a living trust for purposes like protection of assets and allowing assets to transfer without going through probate, but such a trust won’t help you get Medicaid nursing home coverage sooner and won’t help you avoid estate taxes. Irrevocable trusts provide different benefits, but you have to give up a lot of control over your assets. An experienced attorney will help you to determine which type of trust, if any, is the right one for you to create.
Getting Help from an Attorney with the Ohio Trust Code
Zimmer Law Firm can provide invaluable advice when you are thinking about making a trust. You need to make sure you are permitted to create a trust under the Ohio trust code and you need to select the type of trust that will provide you with the benefits and the protections that you are looking for.
To learn more about the trust creation process and about what trusts can do for you, join us for a free seminar. You can also give us a call at 513.721.1513 to find out more about the ways in which we can help with the trust creation process.