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CHILD CUSTODY

Trust

    Think about Trust as a box. You can put anything in that box that you presently own and that eventually you want to give to someone else, for instance to your child. After your death, the box will be given to that person. Such method   makes the life of your heirs easier because they know what to do with your possessions when you're gone. Since they have clear directions, and they don’t need the judge to decide for them how to manage your property.

     It’s similar to moving to another house and packing your own stuff into boxes. It is common to place some instructions on the top of the box such as who is the owner of the box and in which room the box belongs. Likewise, you can write specific instructions for the Trust. You have to designate who is the manager of the Trust (the Trustee) and who can collect money from the Trust (the Beneficiary). You also can add other instructions such as how to invest Trust funds, on what conditions the funds can be distributed, or how to determine the need for the funds. For example, you can say that “My Wife’s Trust” goes to your widow first and that she can take from the box as much as she needs during her life, and after her death whatever is left goes to your son. You can be trustee while you are alive and name your son as the trustee after your death, or you can designate the local bank’s trust department as a Trustee, which will invest the money and distribute it according to your instructions after your death.

    The box can be sealed or you can keep it unsealed. If you are the boss of the box, and the box is not sealed, you can add or remove stuff from the box while you are alive. It’s very similar with Trusts. If you call the Trust irrevocable, then the box is sealed and you cannot add or remove funds or property from the Trust. If you name Uncle Bob or Bank One as a Trustee then the Trust is irrevocable. However, if the Trust is revocable then you can always change your mind and modify the instructions. 

     Trusts can be “inter vivos,” i.e. set up during the Grantor’s lifetime. This means that the Trust comes into being and functions while the Grantor is still alive. A Testamentary Trust is set up by a Will and does not come into being or begin to function until after the death of the Grantor.

     The main advantage of making a Living Trusts is to avoid the time and the cost of probate. Ohio does not use the Uniform Probate Code, which simplifies the probate process, so it may be a good idea for you to make a Living Trust to avoid Ohio’s complex probate process.

Reasons to have Trust:

  • To support minor children after the parent’s death;
  • To set up some limits and conditions for the use of money by adult children;
  • To avoid paying taxes, especially if your estate is more then $2,500,000 for 2009;
  • To donate to charity.

Who does not need Trust:

  • Ones who have few assets.
  • Young couples who are just starting out

To make a living trust in Ohio, you:

  • Create the trust document, which says who will inherit trust property and names you as trustee (the person in charge).
  • Sign the document in front of a notary public.
  • Transfer your property, such as your house and car, to your name as trustee of the trust.

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