Columbus Ohio Testamentary Trust and Living Trust Attorneys
Creating a trust is simply a method of dividing your assets upon your death. It gives the person creating the trust (you) a way to control what happens to your assets, how they are used, and how to divide them.
Simply put – a trust is used to utilize your assets as per your wishes, once you become deceased.
Trusts are also a way to maintain more privacy, as trusts can be part of a private legal document (private), rather than a will, (which is public information).
Trusts are also helpful when planning your estate, including with income tax planning.
Make sure you have an experienced and knowledgeable Columbus testamentary and living trust attorney to help you navigate the process.
A living trust (also known as a revocable trust) is created before your death. In essence, it bypasses probate. Just like any trust (including a testamentary trust), a living trust will spell out how your assets are to be divided or used. It’s a way of not just dividing your assets, but also to legally designate the management of doing so. A living trust is a part of estate planning, and having a lawyer helping you create a living trust will help to mitigate the hassles involved with the process of probate, and entangling yourself or your beneficiaries in much of the expense and complexities along the way. As part of a living trust, you will designate someone (known as a trustee) who will be in charge of all or some of your assets and how they are used. You are essentially designating a person who will manage your assets in your best interest. You are allowing the trustee to make sure your wishes are adhered to, and to manage your assets upon your death.
A testamentary trust is created when you become deceased, and is contained in a last will and testament. It provides for a more flexible method of control, and can only become active and real once you are deceased. A testamentary trust declares how an estate will be distributed among the beneficiaries. It is more flexible than a will and gives you more control of what’s to be done with your assets. A good example is to use a trust as a way for you to give incentives to those receiving your assets, such as an heir having to finish college in order to receive part of your estate. Another example would be to provide assets for a minor child, but handled by a bigger sister or brother, until the child becomes of age. There are different ways a trust can be utilized, and a testamentary trust gives you the flexibility to do so. It can include proceeds, property, life insurance and other assets. There can be more than one testamentary trust as part of a will, and this type of trust becomes expired only when a beneficiary has received the asset(s) that the trust implies.
Contact Our Attorneys
If you are confused about the differences between a living trust and a testamentary trust, we can help you decide what is best for you and your family, and for your type of situation. Our experience in estate planning, probate and trusts is expansive, and immeasurable to your peace of mind.
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Ohio Trust FAQ
What if I die before I make a will or a trust?
If a person dies without a will, their assets will still have to be divided among their heirs, children, spouse etc. In such a case, the courts will appoint an administrator to act as an executor when dividing assets among the beneficiaries. This will not necessarily be what the deceased wished. Without a trust, will etc., there is no way the court can know what your intent for your assets may be.
Are there other types of trusts used in estate planning?
Other types of trusts include:
Special Needs Trust
What is a Testamentary Letter?
A testamentary letter gives the executor of an estate the legal right to be the executor. It gives the executor the power and legal authority to enact the deceased’s wishes and what to do with the deceased’s estate.