In Ohio, a person may choose to create a trust instead of a will. It’s helpful to understand the requirements and benefits of this option.
Trust requirements
The person who is creating the trust must be at least 18 years old, have the intent to make an estate plan and must be of sound mind. The trust must be in writing, signed, and dated by the person creating it. Also, it should outline the terms of the trust, including how the property held in the trust will be distributed.
It cannot be created under fraud, coercion or undue influence.
There must be a trustee who will manage the trust and act in the best interest of the beneficiaries, who are the people or entities who will receive the assets from the trust.
Benefits of a trust
One of the primary benefits of a trust is that it avoids probate, which makes the estate distribution process more private. Unlike a will, trusts usually do not become part of the public record.
A trust can help the creator retain more control over how their assets are distributed, can help with tax planning and special needs planning, if applicable. It also allows people with minor children to limit their access to assets until they reach a certain age.
If the person creating the trust owns a business, a trust can also help outline the transition to a new owner.
These are only some examples of how a trust can be beneficial. There is assistance available to create an estate plan that is the right fit.