Most people consider the term "estate planning" to be synonymous with creating a will. A last will and testament is a very useful estate planning instrument. It can allow you to dictate how you would like your assets to be distributed after you pass away as well as establish a guardian for minor children if you pass away before they are adults.

However, there are other estate planning tools available, such as trusts, that can be even more beneficial in certain situations. In Ohio, trusts come in two forms: revocable and irrevocable. Both have their advantages and disadvantages; it is important to understand the differences between them before deciding which one is best for your estate.

Revocable Trusts May Be Modified and Give You Continued Control over Trust Assets

A revocable trust allows you to maintain control over the assets contained in the trust while you are still alive. This means that you can decide when, how, and to whom the funds will be distributed and change your mind at any time. Living trusts are typically revocable trusts during the person's life and then become irrevocable upon their death.

One of the most exciting times in a person’s life is the birth of a child. There are so many changes and wonderful moments to cherish as you marvel over your new baby and the last thing you are probably thinking about is drafting an estate plan. Many people are under the mistaken impression that estate plans are just for senior citizens, but the truth is that every adult should have an estate plan in place. This is especially true for new parents. Regardless of your marital status, having the legal documents in place that express your wishes for the care of your child should something happen to you is an often overlooked but critical issue for parents to address.

Drafting a Will

A will an essential part of any estate plan, but it is particularly important for parents of minor children. Your will is where you name the person you want to be the legal guardian of your child, the person to whom you will entrust the care of your child if you are unable to care for him or her yourself. If you do not have a person named as a legal guardian, the court will do it and the person they choose may not be the same individual you would have chosen.

Setting Up a Trust

While wills are the place to specify to whom you want to give your personal items such as heirlooms and jewelry, it may not be the right vehicle to specify how you want your larger assets distributed. In fact, many estate planning attorneys recommend that clients set up trusts as a way to pass on assets to beneficiaries. Trusts do not have to go through the probate process as wills must. This protects your last wishes and lessens the chance that your beneficiaries will have to deal with someone contesting the will. 

Many people work hard all of their adult lives, saving for the future and for their families. When the time comes to finally retire, they may have saved a significant “nest egg” and are secure in the knowledge that their family will be taken care of should anything happen to them. However, there are important issues that people often do not even consider when they are thinking about their estate plans. This is where a skilled estate planning attorney can help.

Estate Planning Considerations with Adult Children

When you sit down with your attorney to work out your estate plan, you will likely be surveying things based on the current situation. For example, your adult children may be happily married with children of their own and you likely consider their spouse as one of your own children.

But what happens if – after you pass, and your adult child has inherited that significant amount of money you have left them – they and their spouse decide to divorce. Will their spouse get half of that nest egg in the divorce settlement?

When people begin the process of estate planning, they often have many questions about what course of action would be in their best interest, or in the best interests of their surviving family members and loved ones. One frequently asked question asks what the difference is between a simple will and a living trust. Is one option a better choice than the other? The answer to these questions really depends on your particular situation, but for most typical family situations a good choice is to use a living trust to transfer your property upon your death.

When you prepare a will as your sole means of transferring your property upon your death, your will must go through the probate court, which can be complicated, and your surviving family members could end up fighting over your will once you are gone. However, using a revocable living trust, which an Ohio estate planning attorney can prepare while you are still alive, can help your family avoid probate after you pass on. Individuals who are looking to exercise more control over their property may find that a living trust is a useful estate planning tool.

Advantages of Establishing a Living Trust

Below are just a few of the advantages of using a living trust over a will:

An executor is in charge of administering an estate after an individual passes away. Estate administration can involve many different responsibilities, including managing any investments owned by the decedent and paying any outstanding debts. An executor also is responsible for distributing the remaining assets in the estate according to the decedent’s wishes stipulated in their will and other estate planning tools. The decedent usually names who they want to serve as executor in their will.

Role of an Executor

The first task as executor of an estate is usually locating the decedent’s will. The executor will also need to obtain several certified copies of the death certificate in order to provide to financial institutions, insurance companies, and certain government agencies.

The executor is also responsible for notifying all creditors, as well as anyone who is named as an heir in the will. He or she is also tasked with coming up with a complete inventory of all of the estate’s assets, debt, income, and expenses.