Graham Law has been assisting residents of Ohio with their trusts since the firm’s inception in 1923. We are proud of our roots in Southeastern Ohio and have over a century of experience in establishing trusts for families of all types. Depending on your situation, our attorneys may advise a specific type of trust to address your future planning needs as there are many different types of trusts. Speak to one of our attorneys today to see what type of trust would make most sense for you and your family.
What is a Trust?
In Ohio, a trust is a vehicle for holding and transferring assets such as cash, stocks or real estate. There are three parties to a Trust which include:
- The grantor (trustor) is the person who creates the trust
- The trustee is the person or institution in charge of managing the trust’s assets according to the terms established by the grantor/trustor
- The beneficiary is the person (or organization, such as a charity) that receives the assets in the trust. It’s important to note here that a trust can have more than one beneficiary.
When the grantor creates a trust, they’re able to attach terms and conditions that stipulate how the assets are used by the beneficiary/beneficiaries. For example, the grantor might instruct the trustee to distribute a certain amount of money per year to the beneficiary or stipulate that the funds may only be used to pay for education or another specific expense. The grantor can even require that the beneficiary be employed or engaged in other gainful activities to receive distributions from the trust.
Setting up a revocable trust allows the grantor to retain control of the trust assets during their lifetime. They can change the terms and beneficiaries while they’re still alive or dissolve the trust entirely should circumstances change.
Types of Trusts We Can Help You With
In Ohio, there are lots of different types of trusts. The choice of trust setup depends on the specific goals, circumstances, and needs of the grantor and beneficiaries. At Graham Law, our attorneys can help set up the following types of trusts:
Revocable living trust: As its name implies, this type of trust is revocable or amendable. It is created while the grantor is still alive, and he/she can transfer ownership of assets into a trust during their lifetime. Revocable living trusts control the disposition of your assets and belongings. To avoid probate, assets held in a revocable trust typically pass directly to beneficiaries outside of the probate process which could potentially save time and money. Other benefits of these types of trusts include flexibility and control, privacy, incapacity planning and more.
Irrevocable trust (wholly discretionary trust): An irrevocable trust on the other hand is an arrangement where assets are transferred into a trust, and the terms can’t be changed or revoked by the grantor. Once assets are placed in these types of trusts, they typically belong to the trustee under management of the trust agreement with the intent of benefiting the trust’s beneficiaries.
Special needs trust: This type of trust is designed to provide for the ongoing care and support of an individual with special needs while preserving their eligibility for government benefits such as Medicaid and Supplemental Security Income (SSI). This arrangement is intended to enhance the quality of life for the individual with special needs by providing supplemental needs that government benefits may not cover such as transportation, education, and other personal expenses.
Charitable trust: A charitable trust is a legal arrangement established for charitable purposes. In a charitable trust, assets are dedicated to one or more charitable causes or organizations. The beneficiaries of charitable trusts can be organizations such as religious institutions, educational institutions, non-profit organizations, hospitals, or other entities recognized as charitable under Ohio laws.
Testamentary trust: A testamentary trust is a type of trust that is created through a person’s last will and testament and only comes into effect after that person has died. Unlike a living trust which is created during a person’s lifetime, a testamentary trust is established according to terms specified in that person’s will. The funds for these types of trusts are typically funded with assets from the individual’s estate after they have passed away.
Contact Our Attorneys for Legal Help With Setting Up Trusts
At Graham Law, our attorneys would be pleased to help you with all your estate planning needs. Contact our attorneys today and let us help put our experience to work for you. With offices in Zanesville and Cambridge, Ohio, our attorneys are ready to help regardless of where you reside in Ohio.
