Trusts are set of rules related to assets. Trusts that can be changed are called revocable trusts, and trusts that cannot be changed are called irrevocable trusts.
Up until very recently, trusts were necessary to avoid or decrease estate taxes. Trusts help people avoid probate for the assets in the trust. Trusts can also set up rules on how assets are used by heirs. Finally, trusts are used to gradually distribute assets to people who might struggle if given a large sum of money at once or who may have creditors who would try to seize money if it were readily available.
Trusts are sets of rules that govern or otherwise affect assets. Certain trusts can be changed, and those trusts are called revocable trusts (because if the trust can be changed, the trust can also be revoked or terminated). Trusts that cannot be changed are called irrevocable trusts.
Traditionally, trusts have served four main purposes. Up until a few years ago, trusts were necessary to avoid or decrease estate taxes, but now everyone gets that same ability to decrease taxes with or without a trust.
Read more about trusts in Ohio in Lee’s article in the Lima News here: Legal-Ease: Trusts in Ohio
Source: LimaOhio.com, “Legal-Ease: Trusts in Ohio,” by Lee R. Schroeder, March 24, 2018
Lee R. Schroeder is an Ohio licensed attorney at Schroeder Law LLC in Putnam County. He limits his practice to business, real estate, estate planning and agriculture issues in northwest Ohio. He can be reached at Lee@LeeSchroeder.com or at 419-659-2058. This article is not intended to serve as legal advice, and specific advice should be sought from the licensed attorney of your choice based upon the specific facts and circumstances that you face.