Ohio residents who are developing an estate plan should strongly consider including a revocable trust. In addition to allowing an estate to avoid the expense and time of the probate process after the grantor dies, there are several other reasons to create a revocable trust.
Assets that have to go through probate will be made part of the public record. This means that the general public will be able to see to whom the assets of an estate are distributed. Using a trust is a way to keep the transfer of ownership private, which is something that many families prefer.
A revocable trust is also ideal in situations in which individuals have assets in multiple states. Without the trust in place, each of the states in which assets are held may initiate a probate process. However, if the titles for the assets are held in the trust, these processes can be avoided.
Individuals can also create revocable trusts to receive assets from other sources. Assets from IRAs, life insurance, wills, pensions and other trusts can be incorporated into a revocable trust after the death of the grantor. The management, investment and distribution of those assets can be implemented according to the expressed wishes of the grantor for generations. It is important to note that the wording used in the trust document should very precise in order to maintain the tax benefits of any IRAs and pension plans that flow into the trust.
An estate planning attorney may consider a client's assets and goals and then recommend certain types of trusts, such as a revocable trust, to include in his or her estate plan to protect assets and mitigate taxes. A lawyer may assist with drafting the provisions of trusts to ensure that the assets are administered in accordance with the grantor's wishes.