Revocable Living Trust

A trust is an agreement where the Grantor (the person creating the trust) transfers assets to the “Trustee” to hold and manage on behalf of the trust beneficiaries in accordance with the terms and conditions set forth in the trust agreement.  There are two primary types of trusts, revocable and irrevocable.

Revocable Trusts: a trust that is created during Grantor’s lifetime that can be modified or changed at any time before Grantor’s death. Additional benefits of using a revocable trust includes the following:

• Grantor retains ownership of all assets placed in the trust enabling the Grantor to remove, sell or gift trust assets during lifetime
• The trust and its terms remain private
• Can protect assets from beneficiary’s creditors
• Distributions to beneficiaries can be conditional based on Grantor’s instructions as set-forth in the trust
• Provides for management of trust assets during Grantor’s incapacity
• Avoids probate and ensures a seamless distribution of trust assets following Grantor’s death
• Excellent way to provide financial support for Guardians of minor children, minor children and disabled individuals after Grantor’s death
• Excellent way to provide financial support for a current spouse, while also ensuring an inheritance for children from a prior marriage  

Irrevocable Trusts: An irrevocable trust can be created during one’s lifetime or through a Will.  Once an irrevocable trust is created the Grantor has very little control over the trust assets and cannot change the trust’s terms.  Unlike a revocable trust, once assets are transferred to an irrevocable trust the Grantor cannot remove them. Additional benefits of using an irrevocable trust includes the following:

• Protects assets from the high costs of long-term nursing home care
• Estate tax avoidance by removing ownership of assets from one’s estate during lifetime
• Can hold highly appreciating assets for future generations  
• Protect assets against from creditors and litigation
• Maintains privacy – the trust and its terms remain private
• Can protect assets from beneficiary’s creditors
• Excellent way to provide financial support for Guardians of minor children, minor children and disabled individuals after Grantor’s death
• Distributions to beneficiaries can be conditional based on Grantor’s instructions as set-forth in the trust

Winkler Legal is your Ohio trust law firm.  We provide comprehensive trust planning to meet you and your family’s unique circumstances.  Contact Winkler Legal to learn more about the benefits of using Ohio trusts.

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