How To Protect Your Assets In Trusts
A trust is a legal document placing designated assets under the control of a trustee (which can also be the creator of the trust) for specific purposes designated by the creator. Avoid “Trust Mills,” companies that foist expensive trusts on people who don’t need them.
If you have a trust, make sure your trust is either funded or will be funded from your will, and remember that trusts are taxable entities under both federal and Ohio tax laws. Here are some common reasons to have a trust;
- Save taxes. In 2023, the threshold for federal estate tax for a surviving spouse with a large estate exceeds $11 million and no Ohio eliminated its estate tax for a single person years ago. Talk with an attorney or accountant about the taxing threshold since these numbers can fluctuate.
- Avoid probate. Unless you have a large estate, they’re a cheaper and easier ways to avoid probate (see section on non-probatable assets). And, probate may not be a bad vehicle to use when there are assets, debts to pay, and conflicts between heirs.
- Provide a means of distributing an inheritance to children who can’t handle money well. For such a child, his/her inheritance can be part of a trust and the trustee can give money to the child over an extended period of time.
- Special Needs trusts. These can be tricky, but they allow a parent to place into trust funds for a disabled child on Medicaid for limited purposes.
Contact Our Office
With many different Trust options, we can individualize the right strategy for your estate planning goals.
To schedule a consultation with our attorneys, you can reach our office at 440-576-9155 or contact us online to schedule an appointment. Our Jefferson office is conveniently located right across the street from the Ashtabula County Courthouse.