A living trust is often one of the key ingredients in an estate plan. It is widely used because of its flexibility and many advantages. You can learn more about a revocable or living trust here. When people put their money and property into a living trust probate can be avoided and estate taxes saved. While many single individuals do not think they need a trust because often times they are young and might not have many assets, it is important to understand why having a trust can be an advantage even then.
Keeping Control of Assets
Many have the misconception that by creating a trust they are losing control of their assets. That, however, is not true. The trust creator remains in control of the trust throughout his or her lifetime. He or she is the Trustor, Trustee and Beneficiary of it during lifetime, and only after death would the provisions of successor trustees or other beneficiaries kick in. Then, the successor trustee is not allowed to make any modifications or changes to the trust, but rather must follow the provisions and instructions set in the trust document.
Creating an Estate Plan Just in Case
While we do not like to think and talk about death, it is important to have a plan in place that will help us decide how we want our assets to be handled after death, rather than having the courts and state law decide for us. For single individuals this may be especially important because some do not have a spouse or children that would be first in the line of inheritance.
You can find out more here about the succession order in Ohio, however, in an overview, those without spouses or children can expect their parents or siblings to be next in line of inheritance. But what if you wish to leave your assets to someone other than your parents or siblings? That is where the revocable trust can help. It can create a succession plan for you no matter whether you want to give everything to a charity or to your minor nephews and nieces.
We Can Help
Have more questions about revocable trusts? Call Sobon Law LLC today (216) 586-4246!