While an Ohio estate plan might contain any number of different elements, most estate plans include a simple Last Will and Testament. Sometimes it is advisable to utilize Trusts as well.
According to Kiplinger, a Trust is not just for the wealthy. Instead, many people benefit from incorporating trusts into their estate plans; here are a few things a Trust might accomplish.
Set parameters with regard to distributions
You may have certain beneficiaries who may not spend their inheritance wisely. Creating a Trust may allow you the opportunity to stipulate exactly when and under what circumstances you want that beneficiary to access his or her inheritance.
Protect beneficiary public assistance eligibility
Creating a Trust may also prove worthwhile if you have beneficiaries that utilize certain means-based government assistance programs, such as Medicaid. Beneficiaries who receive an inheritance outright may be rendered ineligible for these benefits, whereas a carefully drafted Trust for the benefit of a third-party may allow assets to be utilized for certain purposes without impacting these benefits.
While many people choose to create trusts for the above-named reasons, there are many additional reasons you may want to consider adding one to your estate plan.