Ohio residents who want to create an effective estate plan should know that the inclusion of a trust is necessary. Trusts can be funded or used to hold various types of assets and can ensure that the assets will be handled in the manner specified by the grantor.
Individuals can place their real estate in trusts to control how the assets are managed. They can have an attorney draft a deed or deed in trust so that the title to the real estate will be transferred into a trust. When the transfer is recorded, the trust is funded by the real estate.
Trusts are also useful for managing the personal property of individuals. People can transfer their clothes, valuable collectibles, furniture and appliances into a trust using an assignment, a bill or sale or some other similar document. However, assignments are only applicable to assets that do not have some form of title. For example, they should not be used for assets like vehicles or stocks for which there are already documents verifying ownership.
Individuals can also fund their trusts with financial accounts. For bank accounts, such as checking or savings accounts, they will have to give the bank an affidavit of trust or a certificate of trust and state that they want to place the accounts into the trust. The trustee of the trust will have to sign the new signature cards that the bank will issue.
An estate planning attorney might be able to assist clients with creating the appropriate wills and trusts for their estate plans. The attorney may explain how certain types of the estate planning tools may be used to protect clients’ assets while they are alive and ensure that they are properly managed after they die. The attorney may also be able to assist with drafting trust provisions that dictate how assets should be distributed.