Updated January 25, 2024
The Ohio living trust is used to control the distribution of a person’s estate while bypassing the probate process. For people with a large number and variety of assets and financial interests, a living trust is a great way to ensure that their affairs are properly handled should anything happen to them. By placing their assets into a living trust, their estate will be divested according to their instructions at their time of death or incapacity, rather than being put through a lengthy probate process. A living trust does have associated legal fees, responsibilities, and consequences, so it is important to determine whether creating one is worth your trouble. On this webpage, we have provided information on different variations of living trusts and on how to create one.
Laws – Title 58 (Ohio Trust Code)
Will (Last Will and Testament) – Any of the Grantor’s property that is not placed in the living trust should be put into a Last Will and Testament.
Individual Roles
These are the roles involved in creating, maintaining, and distributing a Living Trust:
Grantor (or “Settlor”) – The Grantor is the person who creates the living trust.
Trustee – The Trustee is in charge of managing the trust as per the Grantor’s instructions.
Successor Trustee – The Successor Trustee will become the Trustee under circumstances detailed in the trust document.
Beneficiaries – As per the trust document’s instructions, the Beneficiaries will be the recipients of the trust estate at such a time and in such a manner as instructed.
Types
Irrevocable – This type of living trust cannot be revoked or amended once it has been created. It avoids the probate process and also protects assets from creditors.
Revocable – The most commonly used form of a living trust. It can be revoked or amended, and also avoids probate.
How to Make a Living Trust in Ohio
In accordance with § 5804.02, anyone can create a living trust as long as they are capable of creating one and properly express the intention to do so. The creation of a living trust involves the drafting of a legal document that outlines the included assets and under which circumstances these assets will be distributed to the named Beneficiaries. By law, no one person can be named as both sole Trustee and sole Beneficiary. Once the trust document has been signed (and preferably notarized), it must be funded by transferring all of the listed assets into the ownership of the trust.
Motor Vehicles – A Bill of Sale is used to transfer ownership of motor vehicles into the trust’s name.
Real Estate – Real estate ownership is transferred by filling out an Ohio Deed and having it notarized. This deed must then be submitted to your County Recorder’s Office.
Do I Need a Living Trust?
When deciding whether creating a living trust is the best way to handle your estate, the main consideration that you should make is whether it is the most cost-effective choice for you. If you have a large estate with multiple holdings, a living trust is likely the best way to have your estate properly distributed and your affairs managed according to your specifications. If you have a smaller estate, however, it may be more cost-effective for you to use a standard will. If your estate is valued at $35,000 or less ($100,000 if the Heir is your spouse), your Heir(s) can use a Small Estate Affidavit to avoid the probate process altogether. Be sure to consult with a legal professional to decide whether a living trust is the best option for your estate, and if so, which type best suits your needs.