When you work on your Ohio estate plan, you may want to use several estate planning tools and methods to maintain control over certain affairs and maximize how much you have to leave behind for your loved ones. When transferring assets to loved ones, you may want to use a will or an irrevocable trust, among other possible methods.
Per Yahoo Finance, there are certain benefits associated with creating wills and irrevocable trusts. There are also some important differences that exist between the two.
Wills and associated advantages
A will is a traditional estate planning document that lets you dictate your wishes with regard to your assets, your child’s guardian, any charitable donations you wish to make and similar matters. You must follow certain state laws to make sure Ohio considers your will valid.
Having a will prevents you from dying intestate and leaving your family in the lurch. It may also help ensure that your assets go where you want and that they do not fall into the wrong hands.
Irrevocable trusts and associated advantages
An irrevocable trust involves you placing assets into a trust that a trustee you appoint then manages. There are several advantages associated with irrevocable trusts. If someone files a lawsuit or wins a judgment against you, the assets in the trust remain safe because they are technically the property of the trustee. Assets in irrevocable trusts also typically bypass probate.
Not everyone’s estate plan is going to look the same. The types of estate planning documents and tools that may benefit you most may vary based on the specifics of your situation.