It is important to understand Ohio irrevocable trusts requirements if you are planning to use an irrevocable trust as part of your asset protection plan, incapacity plan, or estate plan. Irrevocable trusts have many important benefits, but there are also some limitations, such as very limited flexibility and loss of control over the assets within the trust. If you want the trust to provide the expected protections and to serve the purpose for which you create it, you must know the Ohio rules for trust creation.
Zimmer Law Firm knows the rules for irrevocable trusts Ohio and can provide comprehensive assistance with trust creation. We help you to determine if you should create a trust as well as what type of trust is right for you. We also provide assistance with following formalities for trust creation and with making sure you fund your trust appropriately. Give us a call today to find out more.
Ohio Irrevocable Trusts Requirements
Section 5804.02 sets forth the general requirements for creating a trust. These requirements include being of sound mind and being legally an adult. You must prepare a trust document, indicate your intent to create a trust, name a designated beneficiary, and identify a trustee who will manage trust assets. You also have to make sure you have specified the duties of the trustee in your trust document.
There are different kinds of trusts, including both revocable and irrevocable ones, so you have to make certain that your trust document specifies the intent to create an irrevocable trusts. If you want the irrevocable trust to shield the assets that are owned within it, you also need to make sure the trust document is set up so that you have little or no control over assets the trust owns. All of this makes the creation of an irrevocable trust a very high-stakes process because you cannot just go back and make modifications or changes. You need to ensure you set the trust up correctly the first time and that you aren’t left in continued control of trust assets.
Once the trust has been properly created, it also has to be funded. You should talk with an irrevocable trusts Ohio lawyer to find out about the rules for what you can put into the trust and to get help with the process of actually transferring assets to the trust. If you simply create the trust and do not take the steps to make it the legal owner of the property that you are trying to protect, the trust will not be a useful tool for you.
Is an Irrevocable Trust Right for You?
Irrevocable trusts are an alternative to revocable trusts. Revocable trust allow you to have ongoing control over trust assets and allow you to make sure you can modify or change the trust as needed. Because you have continued control, however, revocable trusts are only going to provide limited asset protection. The trust assets won’t pass through probate (but will still be considered for estate taxes) and the backup trustee can begin managing them immediately- which means that the trust assets can be kept safe from losses due to mismanagement. However, the assets held in trust are still classified as your resources for purposes of determining Medicaid eligibility.
With certain types of irrevocable trusts, you can get stronger protection for your assets, which is why many people turn to this type of trust. However, you have to realize that the tradeoff is you are giving up control and flexibility by choosing to make an irrevocable trust. You can discuss with your lawyer exactly what this means for your situation and you can work with your estate planning attorney to decide if the benefits and protections provided by an irrevocable trust outweigh any possible downsides.
Getting Help from an Ohio Irrevocable Trust Lawyer
Trusts are powerful legal tools, but you need to know what type of trust makes sense and you need to make sure you follow the Ohio irrevocable trust rules so you get the expected benefits and protection from trust creation. It is helpful to get legal advice from a Cincinnati trusts lawyer to make sure you are fully informed and follow the requirements of the trust creation process.
To learn more about the role that irrevocable trusts can play in the estate planning process, download our free estate planning peace of mind checklist. If you want personalized advice from an experienced and trusted legal professional, give Zimmer Law Firm a call today at 513.721.1513.