Estate planning is important for everyone to think about. Having a will in place can help to ensure that assets are handed down to the correct beneficiaries after a person passes away. Ohio residents may want to create trusts alongside a traditional will.
What is a trust?
A trust is a type of legal relationship that can be created on paper. A trust contains assets under the care of specific trustees. A trustee is a person who holds the legal title and the ability to manage the assets in the trust. Property in a trust can be anything from businesses to vehicles.
There are various types of trusts that can be constructed by your estate planning professional. A living trust is one of the most commonly used type of trusts to help avoid the probate process. During probate, the estate undergoes a judicial process where a person’s will is validated in court and their assets are distributed according to their will. Probate can last anywhere from a couple of months to a couple of years depending on the size of the deceased person’s estate.
How do trusts skip the probate process?
When you set up a trust, you’re considered a grantor. The assets that you place within the trust are not technically yours; they are owned by the trustee of the trust. A trust allows you to designate another person to be the trustee of the assets. Therefore, when you die, the assets in the trust do not go through the probate process because you technically did not own them. The trust owns the assets.
Trusts are a great way to help your family avoid the probate process after your death. If you’re not familiar with trusts and how to set them up, it’s a good idea to speak with an attorney.
