Does a Revocable Living Trust Protect Assets in Ohio?

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Transcript of Does a Revocable Living Trust Protect Assets in Ohio?

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    Why Drawing Up a Last Will Is Not EnoughIn Protecting Your Assets After Your Death

    DOES AREVOCABLELIVING TRUST PROTECT

    ASSETS IN OHIO?

    arry H. Zimmer Estate Planning Attorney The Zimmer Law Firm 523-721-1

    http://www.zimmerlawfirm.com/http://www.zimmerlawfirm.com/
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    tate Planning Attorney Cincinnati OH Does a Revocable Living Trust Protect Assets in Ohio?

    There are no one-size-fits-all estate planning documents,and unfortunately some people are under the mistakenimpression that a last will fits this description.

    Everyone knows that a last will can be used to arrange for the distribution of

    your remaining assets to your loved ones after you die. However, far too many

    people assume that this is the right document for them when in fact they may

    be better served by a different vehicle or vehicles of asset transfer.

    One thing to take into consideration is the

    matter of asset protection. Creditors who win

    civil judgments could seek to attach assets

    that you have that remain in your personal

    possession. It is possible to take steps to

    protect your assets from these judgments.

    When we use the term "creditors" we are not

    just talking about entities like mortgage

    companies, automotive lenders or credit card

    companies. Creditors in this context couldinclude litigants seeking redress, estranged spouses, and even the tax man.

    If you simply draw up a last will while retaining direct personal possession of the

    property that you own there is nothing stopping creditors of any ilk from

    attaching assets that are included in your estate.

    PROBATE

    The process of probate is a factor when you use a last will to transfer your

    assets. One of the reasons why people often choose to avoid probate is because

    of the fact that it is time-consuming. When creditors are seeking redress from

    the estate this is definitely going to slow down the process, especially if the

    executor of the estate wants to question the validity of the claim.

    If you simply want to

    arrange for efficient

    transfers of assets to yourloved ones and you are not

    concerned about the estate

    tax or asset protection you

    may well benefit from the

    creation of a revocable

    living trust.

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    tate Planning Attorney Cincinnati OH Does a Revocable Living Trust Protect Assets in Ohio?

    Even if no unusual circumstance were to arise probate can routinely take a

    number of months to run its course. The heirs to the estate do not receive their

    inheritances while the estate is been probated. This can be a temporary

    disappointment for some people who are on firm financial footing.

    However, in other cases people are very much depending on their inheritances.

    Under those circumstances probate can actually impose genuine financial

    hardships. This is unfortunate, because there are relatively simple steps that

    you can take to arrange for assets transfers to your loved ones outside of

    probate.

    REVOCABLE LIVING TRUSTS IN OHIO

    Revocable living trusts are commonly used to facilitate probate avoidance. The

    person who creates the trust is known as the grantor or settlor.

    The way that it works is you as the grantor select a trustee. This is the

    individual who manages the assets that have been placed into the trust.

    You also name a beneficiary. This individual receives monetary distributions

    from the trust. The nature of these distributions is decided by you when you

    create the trust agreement. It should be noted that there can be multiple

    beneficiaries.

    http://www.zimmerlawfirm.com/estate_planning/index.php/living-trusts/http://www.zimmerlawfirm.com/estate_planning/index.php/living-trusts/
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    tate Planning Attorney Cincinnati OH Does a Revocable Living Trust Protect Assets in Ohio?

    When you create the trust you need not surrender control of the decision-

    making to someone else while you are still alive. In most cases the grantor of

    the trust will choose to act as both the beneficiary and the trustee. You can

    select successors who would fill these roles after you pass away. Your successor

    trustee could also administer the resources that have been conveyed into the

    trust in the event of your incapacitation.

    Now, let's get back to the subject of asset protection. You may think that assets

    that you conveyed into a revocable living trust are protected from creditors

    because after all, they are in the trust, not in

    your direct personal possession.

    However, this is an incorrect assumption, andthere are those who have fallen into this trap.

    As mentioned above you are probably going to

    be acting as the trustee and the beneficiary.

    You can do anything you want to do with the

    property that has been conveyed into the

    trust. There are no restraints.

    Another thing to consider is the actual name ofthe device: revocable living trust. You as the

    grantor can choose to revoke the trust and assume personal ownership of the

    property. At that point you can do anything you want to do with the assets.

    One of the things that you could do would be to pay creditors who are on the

    right side of civil money judgments. Because of this reality revocable living

    trusts provide no asset protection to the grantor.

    WHAT CAN YOU DO?

    If you are interested in asset protection planning various different options exist

    for you. One possibility would be to create a family limited partnership. The

    partners are not personally liable for the actions of the partnership. There are

    When you convey assets

    into a revocable living

    trust they wont be probate

    property after you pass

    away. The trustee that you

    choose will be able to

    distribute assets to your

    beneficiaries outside of the

    process of probate. Your

    affairs will be private,

    unlike probate cases that

    are open to the public.

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    also estate tax benefits that can be realized by the creation of a family limited

    partnership.

    Another possibility would be the creation of a limited liability company. Similarly,

    creditors would have to seek redress from the company rather than those who

    are running the company.

    CONCLUSION

    Asset protection strategizing can be complex. The best way to go about it is

    with the assistance of a licensed estate planning attorney.

    REFERENCESNolohttp://www.nolo.com/legal-encyclopedia/revocable-living-trusts.html

    Investopedia

    http://www.investopedia.com/articles/pf/06/revocablelivingtrust.asp

    About the Author

    arry Zimmer engages in a Wealth Care Practice. Specific services include include basic and advanced trust planni

    ust estate settlement; probate estates; trust beneficiary advocacy and representation; asset protection; busines

    rganization; business succession planning; and pre-marital planning.

    is goal is to make creating a Wealth Care and Estate Plan the first step in a relationship that is satisfying and unli

    ient's experience with any other lawyer.

    The Zimmer Law Firm

    9825 Kenwood Road, Suite 201

    Cincinnati, OH 45242

    Phone: (513) 721-1513

    [email protected]

    http://www.zimmerlawfirm.com/estate_planning/index.php/living-trusts/