The process of estate division in Ohio is often long and complicated. However, one way to streamline the process is to establish trusts. According to the IRS, a trust gives the title of assets to another person, who is then required to distribute or use them according to the benefactor’s wishes. Essentially, a benefactor establishes who will assume control of his or her assets and ensure that the beneficiaries receive their portions after the benefactor’s death.
CNN states that some trusts, called testamentary, only take effect after the benefactor passes away. Trusts which take effect before the benefactor dies are called living trusts. In this case, the assets are transferred from the benefactor’s ownership. A revocable living trust allows the benefactor to retain control of the assets and make changes as necessary. Assets could be added or removed, and the list of beneficiaries may be altered as well. Irrevocable living trusts, on the other hand, tend to be more rigid. Typically, the beneficiaries must grant permission before changes can be made.
There are several types of trusts which could apply to specific circumstances. Some allow aspects of the estate to avoid taxation, while others provide for the distribution of the estate within unique family arrangements. The qualified terminable interest property trust makes arrangements for a current spouse as well as children from previous marriages, and generation-skipping trusts allow for grandchildren as beneficiaries. Regardless of the type, many people utilize trusts in order to avoid probate and maintain control of personal assets.