Columbus Trusts Lawyer

Experienced Trust Attorneys Serving Franklin County, OH

When contemplating their legacies and how to manage asset distribution after their passing, the considerations and concerns people may have will vary. Beneficiaries have diverse needs and desires that need to be addressed. Trusts can serve as a practical solution to deal with these concerns, while still offering financial benefits during the client's lifetime.

A Columbus trust lawyer from our office can provide sound advice on whether establishing a trust is suitable for each client's particular needs and how it should be structured. Our legal team is dedicated to offering tailored strategies to ensure each trust matches the unique objectives and circumstances of the individual. By effectively navigating these complex matters, we help clients secure their financial future and provide peace of mind.

Call Kemp, Schaeffer & Rowe at (614) 665-5833 or contact us online to set up a consultation with an experienced Columbus trusts attorney.

How Do Trusts Work?

A trust is created when a person (the grantor) transfers property to another person (the trustee) to manage the property for the benefit of others (the beneficiaries). The terms of a trust describe how the property is to be managed by the Trustee. Oftentimes the grantor and the trustee are the same person.

A trust can be structured to pay out immediately after the grantor's death or over time. The latter can protect beneficiaries from the drawbacks and responsibilities of managing a substantial lump sum. The grantor assigns a trustee to administer the trust and distribute its assets.

The trustee takes on a serious responsibility in agreeing to uphold the grantor’s last wishes over an extended period of time. This is a responsibility that includes legal obligations and can leave the trustee vulnerable to legal action if heirs feel the trust is not being responsibly managed.

Since life circumstances continuously change, a trust's structure and contents may require updates. Beneficiaries' potential needs could change, and clients' long-term concerns could evolve. At KSR, we view trust planning as a continuous journey rather than a one-time task. We strive to understand our clients' hopes and worries for the future, keeping in touch with them to ensure their trust remains up-to-date. Our approach is rooted in building long-lasting relationships with our clients, ensuring their estates are managed according to their desires both now and in the future.

What Types of Trusts Can Be Created?

There are various types of trusts, each serving a distinct purpose, such as protecting assets from creditors or reducing estate taxes. A Columbus wills and trusts attorney helps evaluate your options and create a customized plan. We take a comprehensive approach, examining each client's specific situation to recommend the most appropriate trust options.

Common types include:

• Revocable Trust: The most common type of living trust is a revocable trust, in which the grantor can amend or revoke it at any time during their lifetime. The grantor keeps all the benefits of any property placed into it for the rest of their life while still enabling heirs to enjoy the benefits of a trust.
• Irrevocable Trust: An irrevocable trust cannot be modified or revoked once it is established. Because of this, irrevocable trusts offer more protection from creditors and can have tax benefits.
• Testamentary Trust: A testamentary trust is created through a will and only becomes effective after the death of the grantor. It can be used to distribute assets to beneficiaries over time, rather than all at once. Testamentary trusts are commonly used to provide for minor children, special needs family members, or loved ones who may not be capable of managing a lump sum inheritance. Unlike living trusts, testamentary trusts are subject to probate.
• Special Needs Trusts: A special needs trust is designed to provide financial support for a person with disabilities while preserving their eligibility for government assistance programs, such as Medicaid and Supplemental Security Income (SSI).

Why Choose a Trust for Your Estate Planning?

Here are some compelling reasons to consider incorporating a trust into your estate plan:

• Avoid Probate: One common use of trusts today is to avoid the probate process by having property held and passed at death pursuant to the terms of the trusts rather than by a will. This provides a quicker and often less contentious transfer of assets.
• Asset Protection: Trusts can also be used to achieve other goals, such as creating a mechanism to manage property during the owner's lifetime (especially during any time that the property owner experiences difficulty in managing his or her financial affairs) and as an arrangement to facilitate later financial and estate planning. Trusts can shield assets from creditors and legal claims, ensuring a greater level of financial security.
• Confidentiality: A trust may also offer advantages in terms of confidentiality. A testator’s will and the assets or the amount it disposes of are a matter of public record when an estate is opened. Some individuals wish to maintain confidentiality with respect to the nature of dispositions made at death and/or the nature of their assets. A trust is more likely to achieve that confidentiality, although there are situations where courts may require a disclosure of the terms of the trust and the assets it holds (typically when there is a disagreement among beneficiaries). That being said, the likelihood of confidentiality being maintained is much higher with a trust rather than with a will.
• Flexibility: Some trusts are funded at creation, while others are funded at a later time. Trusts can even be funded at the grantor’s death by use of a pour-over will. Clients can also partially or fully fund the trust while alive, which may create a favorable tax situation depending on the circumstances. This flexibility allows for personalized estate planning strategies to support varying financial goals.
• Support for Dependents: Placing assets in a trust can provide liability protection, safeguarding them from seizure in the event of legal disputes. This liability protection can be extended to one's heirs. If a client is concerned about an adult child's vulnerability to litigation, putting money for them in a trust can protect them from divorce proceedings or other legal actions. This strategically ensures stability for future generations.

Understanding Ohio's Trust Laws

In Ohio, trust laws are designed to offer flexibility while protecting the interests of all involved parties. The Ohio Trust Code, effective since 2007, provides a comprehensive framework that ensures trusts are administered fairly and efficiently. One notable aspect is the emphasis on fiduciary duty, which requires trustees to act in the best interest of the beneficiaries, prioritizing their well-being and adhering to the grantor's intentions. Our firm works diligently to ensure compliance with state regulations, offering clients tailored advice that aligns with Ohio's legal landscape.

Another key factor in Ohio's trust laws is the ability to modify or terminate a trust under specific conditions. For instance, if the goals of the trust become impractical or if the continuation of the trust is inconsistent with the grantor's intended objectives, modifications can be pursued. This adaptability allows individuals to make adjustments over time, reflecting changes in their personal circumstances or goals. At Kemp, Schaeffer & Rowe, we help clients navigate these complexities, ensuring that their estate plans remain effective and appropriate for all stages of life.