During your estate planning process in Ohio, you may be asked if you want to create a trust. According to The Motley Fool, a trust is basically an account set up for the benefit of someone else. It gets a little more complicated than that, though. Trusts usually have rules and guidelines. They also often have a trustee, who is appointed to manage the trust for the beneficiary.
Trusts can also be irrevocable or revocable, which basically means you can or cannot make changes to them once they are established. Typically, they are used for inheritance reasons. You can put money in a trust for an underage child so that if you die, you know that money will go to him or her. Often, guidelines are put on the trust. For example, a guideline may be the money will not be released from the trust until the child reaches a certain age or requiring only a certain amount of money to be released from the trust each year. There is also an option to set up a trust so it minimizes the tax obligations.
Trusts do not have to be set up just for minors. You can set one up for anyone you want to get an inheritance. It can speed up the probate process and prevent any questions about what you want because it is legally binding. It will cost money to set it up, but the peace of mind it offers can be well worth it. This information is only intended to educate and should not be interpreted as legal advice.