Cleveland Revocable And Irrevocable Trusts Lawyers

Worried about nursing homes and hospital care decimating your estate and sapping your life savings in just a few years? You want that inheritance to go to your loved ones. Here at Russo, Rosalina & Co., LPA, we’ve spent more than 30 years helping our clients in Greater Cleveland determine how to make that happen. You can rely on our knowledge of Ohio estate planning law.

Revocable And Irrevocable Trusts

Trusts take control of your assets. A revocable trust still gives you some control, as you can cancel or alter the trust in the future as needed. An irrevocable trust is in some senses more powerful, though. No one can change it, and the assets within the trust cease to belong to you.

Why would you want to give up control? It also gives you protection. Creditors can’t come after that money. It can’t be subject to lawsuits. You don’t have to pay it to a nursing home or a hospital before becoming eligible for other benefits.

However, the trust still passes that money on to your heirs. You simply name them as the beneficiaries and specify when and how the trust is to pay out. They get the money, it stays in your family and you protect your assets. People often talk about giving gifts to their kids in advance; this is just a simple, safe way to do it, while still giving yourself control over how the gifts are given.

Either trust can help protect your assets. You simply need to work with one of our experienced attorneys to determine which best fits your specific situations.

What Goes Into Drafting A Revocable Trust?

Drafting a revocable trust involves several important steps to make sure it meets your needs and intentions:

• Determining your assets
• Choosing a trustee
• Drafting the trust agreement
• Funding the trust

Following these steps will help set up your revocable trust effectively and align it with your estate planning goals.

What Are The Benefits Of A Revocable Trust?

Revocable trusts offer several notable benefits that can enhance your estate planning strategy:

• Flexibility: You can modify or revoke the trust as needed.
• Avoiding probate: Assets in a revocable trust typically bypass the lengthy probate process.
• Privacy: Unlike a will, a revocable trust doesn’t become a public record.

These advantages make a revocable trust an attractive option for those seeking both control and efficiency in their estate planning.

What Can You Include In A Revocable Trust?

A revocable trust generally includes property (like real estate and financial accounts), beneficiaries (who receive the assets) and a trustee (who manages the trust). These components make the trust effective for managing and distributing your assets.

How Are Irrevocable And Revocable Trusts Different?

While both types of trusts provide valuable asset protection, their differences are significant:

• Control: A revocable trust allows you to make changes or dissolve it, while an irrevocable trust is fixed once established and cannot be altered.
• Tax implications: Irrevocable trusts can offer potential tax benefits, as assets transferred to them are no longer part of your estate. Revocable trusts generally do not offer such benefits.
• Protection from creditors: Assets in an irrevocable trust are protected from creditors and legal claims, whereas those in a revocable trust are still part of your estate and can be subject to claims.

Understanding these differences helps you choose the right type of trust based on your specific needs and goals.

Four Ways To Fund A Revocable Living Trust

There are numerous documents to consider when putting together your estate plan. While many people are aware of wills, more people in Ohio should consider the advantages of revocable living trusts. These trusts do not require probate, and they can help people better maintain their privacy.

However, it is not enough to only sign a document stating you have a revocable living trust. You also need to fund the trust. There are several ways you can go about accomplishing this.

1. Transfer Business Interests

In the event you hold any interest in an LLC or partnership, you can retitle those funds into the name of your trust. To learn how to do this, you will need to check the articles of incorporation, LLC operating agreement or partnership agreement. These documents will detail how to transfer interests and whether there are any restrictions.

2. Transfer Real Estate

You will need a deed to transfer real estate you own. You will need to follow provisions set forth by the state of Ohio to accomplish this. You may have to acquire permission from a homeowners association or from a lender if you have a mortgage on your home. There will be some fees and a transfer tax associated with this. However, there may be ways to circumvent the property tax.

3. Transfer Your Bank Account

Get in touch with your bank to learn how your money market, checking and savings account can go into your trust. In some cases, you need to close the account entirely. There are occasionally penalties for early withdrawals, so make sure you understand what fees you will get for specific actions.

4. Alter Life Insurance Beneficiaries

Many people prefer making the owner or beneficiary of a life insurance plan the trust. When the trust is the owner, the trustee is capable of managing your life insurance policy in the event you become mentally incapacitated.

Distribution Control

One of the biggest benefits of a trust is that you control distribution of the assets. For example, the trust could:

• Specify what age the beneficiary must reach to receive the money
• Give some of your assets to a charity of your choice
• Allocate the funds for a specific purpose, such as paying tuition so your heirs can attend college
• Provide for an heir with special needs, allowing him or her to receive assets through controlled payouts without becoming ineligible for necessary benefits

Trusts give you far more control over your assets than simply leaving a lump sum behind and hoping your heirs use it wisely.

When Can You Modify A Revocable Trust In Cleveland, Ohio?

A revocable trust is designed to be flexible, allowing changes as your circumstances evolve. Modifications are often necessary to address significant life events or shifts in financial priorities. Some common scenarios for modifying a revocable trust include:

• Marriage or divorce: Updating the trust to reflect changes in marital status or to add or remove a spouse as a beneficiary.
• Birth or adoption of a child: Including new family members as beneficiaries or altering the terms of distribution to accommodate their future needs.
• Changes in financial circumstances: Adding newly acquired assets, removing sold or gifted property or redistributing existing assets among beneficiaries.
• Health concerns or incapacity planning: Adjusting the trust to provide for medical care, long-term care arrangements or appointing a successor trustee.
• Beneficiary changes: Revising the trust if relationships change, or if a beneficiary’s circumstances–such as financial need or age–shift.

To make these adjustments, the trust document must be amended or restated, and all changes must comply with Ohio law. A trust lawyer can help update the necessary legal documents accurately and effectively.

Do Assets Held In A Revocable Trust Have To Go Through Probate?

Assets properly transferred into a revocable trust during your lifetime typically avoid probate. This means that upon your passing, these assets can be distributed directly to your beneficiaries without the need for court oversight.

Avoiding probate offers several benefits:

• Speed: The distribution process is usually faster than probate proceedings.
• Cost savings: Avoiding probate reduces court fees and related expenses.
• Privacy: Probate proceedings are public records, whereas trust distributions remain private.

However, any assets not retitled in the trust’s name or included in a pour-over will still go through probate. Proper funding of the trust is essential to make sure all intended assets are included.

Are There Tax Implications To A Revocable Trust In Ohio?

While a revocable trust offers significant advantages, it generally does not reduce estate taxes during your lifetime because the assets remain part of your taxable estate. However, it provides a framework for more advanced tax planning strategies, such as pairing it with irrevocable trusts or other tools to potentially mitigate tax liabilities.

If you anticipate a significant estate, discussing your options with a trust lawyer is essential. They can offer legal advice and help integrate your revocable trust with additional planning methods, making sure it complements your broader estate planning objectives while adhering to Ohio law.

How A Cleveland Trusts Attorney Can Help

An experienced attorney can guide you through the process of creating a trust that aligns with your goals. From drafting the trust document to making sure it is properly funded and legally sound, we offer personalized legal guidance to help you achieve peace of mind knowing that your assets will be managed according to your wishes.

Contact Us Today

Don’t put off your estate planning. To learn more about how a compassionate estate planning lawyer with a personal touch can help, call us at 440-663-1535, or get in touch with us online. We’ll help you sort through your options and build the right estate plan.