Creating a Trust in Beavercreek, OH
Beavercreek, OH is a picturesque suburb of Dayton—the second-largest Dayton suburb, with a population of about 47,000. In 2007, Beavercreek ranked 84th in the Top 100 Places to Live as reported by Money magazine. With two golf courses and two shopping malls, the beautiful rolling hills dotted with charming farms provide a high quality of life for residents. No matter the location, Americans across the nation must consider estate planning, preferably sooner, rather than later.
While this is a subject that most of us would rather put off for “later,” it is also a subject that is crucial if you want to ensure your loved ones are properly taken care of in the event of your death or incapacitation. A Beavercreek trust attorney from Lovett & House can answer all your questions, making it as painless as possible, while planning for all eventualities.
Trusts have a wide variety of uses and benefits, including the ongoing professional management of your assets. Assets can be kept out of a surviving spouse’s estate while providing income for life, or the care for a person with a disability can be addressed. Assets can be protected from creditors by using a trust or from becoming marital assets in a divorce. Charitable giving can be accomplished in a tax-efficient manner, while tax liabilities and probate costs can be significantly reduced.
If assets are being left to individuals who might have exhibited poor judgment in the past, a trust can be tailored in a way that the individual is protected from being taken advantage of or from poor investment decisions. A trust can allow the multi-generational transfer of wealth and can ensure decisions you would approve of will be made in the eventuality of your incapacitation as well. While there are many good reasons to have a trust, it is equally important that you have a legal advocate who understands the “big picture” and family dynamics to guide you through the process.
Why Choose a Beavercreek Trust Attorney from Lovett & House?
At Lovett & House, we have decades of experience helping individuals and families develop plans to efficiently manage their assets during their life, in times of incapacity, and after their death. There are many different types of trusts that can be utilized, depending on your unique situation, as well as your goals and needs. Along with our extensive experience and knowledge, attorney George Lovett is a certified expert by the Ohio State Bar Association in Estate Planning, Trust and Probate Law. Our firm has more than 100 positive Google reviews from satisfied clients, and we offer a free five-minute phone consultation.
What is a Living Trust?
A Living Trust is one that is made while you are alive. You will name beneficiaries in your trust, just as you would in a Will, and when you die, your assets will go to those beneficiaries. A benefit of a trust over a Will is that a Trust does not go through court probate, meaning it costs less, takes less time, and is private (a Will becomes public once it goes through probate). When you create a Living Trust, you will name a “Trustee,” which is usually yourself. So, while you are alive, you retain total control over your assets, and, if the trust is a Revocable Living Trust you can modify it or revoke it entirely whenever you choose. You will also name a “Successor Trustee” to take over and manage the trust after you die. That person will follow your wishes, distributing the property in the trust as you wish.
What Are the Differences Between a Revocable Trust and an Irrevocable Trust?
A revocable living trust is the most popular type of trust. As the owner of the revocable living trust, you can change the terms at any time. You can remove beneficiaries, designate new ones, or modify any stipulations that detail how assets within the trust are to be managed. A revocable living trust is very flexible, however, in some instances, this can become a negative.
Because you retain such a level of control over a revocable living trust, the assets you place into that trust are not shielded from creditors. If you were to be sued, the assets in the trust could be ordered to be liquidated to satisfy judgments. When you die with a revocable living trust in place, the assets in the trust are also subject to state and federal estate taxes.
Unlike a revocable living trust, an irrevocable trust has terms that are essentially set in stone as soon as the document is signed. No changes can be made to an irrevocable trust except in exceedingly rare circumstances. Once you transfer your assets into an irrevocable living trust, you have effectively removed all rights and control of those assets from yourself. The primary reasons people choose an Irrevocable living trust over a revocable living trust are taxes and creditors.
Since an irrevocable trust removes assets from your estate, they are not subject to estate taxes when you die, relieving you of tax responsibility as well as income generated by the assets. An irrevocable trust can also protect your estate from creditors to some extent. Because an irrevocable trust is fairly complex, it is essential that you have an experienced Beavercreek trust attorney prepare the documents.
What Are Some Other Types of Trusts in Ohio?
Aside from revocable and irrevocable trusts, there are several other types of trusts you might find beneficial. A testamentary trust is generally used for a child’s inheritance. You will direct the administrator of your estate to place certain assets into a trust for the benefit of a specific heir. The appointed trustee will manage the assets for the benefit of the heir. You can essentially do the same thing with a revocable living trust while saving money.
A special needs trust (Medicaid Payback Trust) is used for a disabled or special needs individual so he or she can still qualify for public benefits like Medicaid. The income from the special needs trust is not paid directly to the individual, rather it is used for his or her needs, such as special medical equipment. It is important that the special needs trust be drafted so it complies with all federal and state laws.
If your goal is to protect an individual retirement account from creditors and bankruptcy while preserving those funds for your beneficiaries, you might consider a retirement trust. Since the funds in the retirement trust are not disbursed to your beneficiary in a single lump sum amount, those funds continue to grow tax-free or tax-deferred.
How Can a Beavercreek Trust Attorney from Lovett & House Help You with Your Trust?
The Lovett & House Co., LPA attorneys have been helping people just like you for many, many years. We assist individuals from all walks of life to develop a plan that manages their assets while they are alive, during a time of incapacitation, and after their death. The type of trust you will choose will depend on your individual goals and needs. Contact Lovett & House to schedule an appointment to discuss how a trust can work for you and your loved ones.
