When it comes to estate planning, there are many options that grantors can take to protect their assets, take care of beneficiaries after passing, and ensure that their estate is properly managed. One question that many people face is whether to opt for a revocable trust or an irrevocable trust in Ohio.
Revocable Trusts vs. Irrevocable Trusts in Ohio
Irrevocable and revocable living trusts in Ohio seem pretty self-explanatory. A very simple description is that revocable trust can be amended or cancelled altogether by the grantor — the person who prepares and files the trust — while irrevocable trusts cannot be cancelled or revoked, and the grantor’s ability to amend is either very limited or non-existent.
But of course, there is much more to estate planning and irrevocable and revocable living trust agreements in Ohio.
Revocable Trust Versus Irrevocable Trusts in Ohio
While it may seem risky to place all assets outlined in an estate into an irrevocable trust, there are many benefits that irrevocable trusts have that revocable do not.
For example, with some types of irrevocable trusts is where the grantor no longer has control over the assets, there can be benefits like avoiding capital gains or estate taxes, charitable giving tax deductions, asset protection from the grantor’s liabilities and more.
One thing to remember when forming an irrevocable trust is that once the assets are signed away, grantors generally cannot get them back. That’s the irrevocable part of an irrevocable trust. Some families use irrevocable trusts to preserve assets for disabled beneficiaries who receive means-tested public benefits like supplemental security income or Medicaid.
Revocable trusts are essentially the exact opposite of their irrevocable counterparts. During the life of the grantor, assets can be added and removed, and distribution or beneficiary instructions can be changed. These trusts are well-suited for grantors who want to maintain control of their assets during their life, but avoid probate and decrease the cost of estate administration after they pass away. One other major benefit of a revocable living trust in Ohio is avoiding the costly process involved with the inheritance for a minor child. Revocable trusts are a great tool for planning a gift to a minor child, without the need for a probate guardianship of that child’s inheritance.
Contact a Trust and Estate Planning Attorney in Ohio
When it comes time for you to begin planning your estate and determining your options between a revocable trust, versus an irrevocable trust, in Ohio, be sure to have a legal professional that has experience in that area of the law – this is not a time to hire a friend of a friend who dabbles in this work. It’s your assets and your estate, and Obenour Legal Group understands that you need the highest quality of legal expertise to ensure your estate is protected. Contact us today for a case review and let us help you decide how to plan for the future.