What is a trust?

A trust is a legal document that allows a person, known as the Trustor, to transfer their property to another person, known as the Trustee, to be held and managed for the benefit of a third person, known as the Beneficiary. The Trustor has the power to create the trust, name the Trustee, and determine how and when the Beneficiary will receive the property. The Trustor may also state the purpose of the trust, such as creating a medical fund or paying for college tuition. In Ohio, a trust may also be created to avoid probate court proceedings. Probate is the court process of settling a deceased person’s debts and distributing their remaining assets. In a trust, the Trustor will create a document in which they determine who will receive their assets after they pass away. This avoids the court process and helps the Beneficiary gain quick access to the trust’s assets. Trusts may also be used to manage or conserve property for the benefit of a Beneficiary that is unable to manage the property themselves. This type of trust is known as a special needs trust. The Trustor can create a trust to manage the Beneficiary’s assets while the Beneficiary receives government benefits, such as Medicaid or Supplemental Security Income (SSI). Trusts are an important part of trusts and estates law in Ohio. They can be used to avoid probate, manage assets, or provide for a Beneficiary. It is important to talk to a qualified attorney before creating a trust to ensure that all legal requirements are met and that the trust is appropriately administered.

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