Does the thought of making an estate plan make you uneasy? You’re not the only one with such feelings. The process inevitably makes you face your mortality, a difficult task for anyone. Nonetheless, getting older without having a well-thought-out plan is risky. Not having an estate plan essentially means giving the state of Ohio the power to decide the fate of your estate after your demise. They will determine who inherits your assets, who takes care of your underage kids, and who manages your affairs if you become incapacitated.
Fortunately, an estate planning attorney can help you maintain control with irrevocable and revocable trusts and wills. A Columbus, Ohio, estate planning lawyer can also help with special needs trusts and a full range of legal issues related to your estate plan.
What is a Will?
Your Columbus, Ohio trust and wills attorney will likely advise you to create a will.
This legal document often forms the bedrock of a thorough estate plan, enabling you to decide who gets your assets and takes care of your underage children. The will becomes effective only after your death, allowing you to maintain control over it as long as you are mentally fit and make changes or revoke it at your discretion.
After your death, your will must pass through probate court. Once approved, the executor of your estate will distribute your assets following your directives. Your estate planning lawyer can guide you throughout this process, from drafting the will to representing your family during probate, easing your worries about the fate of your estate. However, many people prefer to bypass probate. Since a will lays out the guidelines for probate, it might not be the best option to manage the distribution of your assets after death.
Probate can be avoided, and a living trust serves as an effective tool for doing so while also guiding you during your lifetime and after your death.
What is a Trust?
A trust is essentially another method of owning your assets, offering guidelines to handle multiple possibilities or scenarios, thus proving to be more flexible than a will.
A trust is a legal mechanism set up by an individual, referred to as the grantor, to secure their assets and direct their posthumous distribution. It can simplify the often protracted, public, and potentially costly probate process for heirs and beneficiaries.
The trust is outlined in a legal document detailing the terms and assigned assets, with the grantor appointing a trustee to manage these assets for the beneficiaries’ advantage. Living trusts can either be revocable or irrevocable, each having different tax consequences and degrees of flexibility.
Your Columbus trust and will lawyer may recommend a trust after evaluating your estate. While there are numerous options, all trusts comprise three main parts: the trust’s creator, the trustee, and the beneficiary or beneficiaries. When you form a trust, you transfer assets into it. Depending on the type of trust, it might shield these assets from creditors and taxes.
Your lawyer will explain your options, including revocable trusts, irrevocable trusts, special needs trusts, asset protection, and Medicaid planning trusts. Then, you can decide which option makes the most sense for you and your family.
Top Benefits of Trusts and Wills in Columbus, Ohio
- Designate beneficiaries
- Name a guardian for minor children
- Avoid a conservatorship or guardianship
- Protect assets
- Avoid Probate
- Saves time and money
Is It Possible to Cancel a Trust?
You can set up a revocable or irrevocable trust as per your preference. If you opt for a revocable trust, you can serve as the trustee and have the authority to revoke it at will.
Even irrevocable trusts, typically used for asset protection and Medicaid benefits eligibility planning, can be annulled if they meet your requirements. Interestingly, you can alter certain types of irrevocable trusts. This is a strong argument for engaging a competent elder law attorney.
Many attorneys and other professionals fail to fully grasp the versatility and adaptability that can be built into specific types of irrevocable trusts. An irrevocable trust can yield tax benefits. Moreover, it can assist in planning for long-term care by protecting assets from creditors and preventing unrestricted long-term care spend-down.
Discuss with your Columbus trust and will attorney to understand which type of trust would best serve your interests moving forward.
When Do I Need a Trust and/or Will?
It’s never too early to begin estate planning. Don’t feel uncomfortable if you haven’t initiated the process yet. Whether you’re a young adult or in your retirement years, it’s the perfect moment to establish a will or trust. After setting up the will or trust, make sure to frequently review your estate plan to check if any changes are required. Your lawyer can assist with this. Remember, the key is to take the first step!
