Does a Revocable Living Trust Protect Assets in Ohio?

7/30/2019 Does a Revocable Living Trust Protect Assets in Ohio?

http://slidepdf.com/reader/full/does-a-revocable-living-trust-protect-assets-in-ohio 1/5

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

DOES A R EVOCABLE

LIVING TRUST PROTECT

A SSETS IN OHIO?

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

http://www.zimmerlawfirm.com/

http://www.zimmerlawfirm.com/



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 your loved 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.




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/





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 of the 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 won’t 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.



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.

REFERENCESNolo http://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]


Does a Revocable Living Trust Protect Assets in Ohio?

Documents

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