Best Cincinnati Ohio Trust Administration Attorney Near Me

Common Types of Trusts

Before we discuss trust attorneys, it is empowering to understand the different types of trusts available. Armed with this knowledge, you can confidently make an informed choice that best suits your needs.

Revocable living trusts

A revocable living trust is one of the most common trust types, and it allows you to protect your assets and have control over them for as long as you’re alive. For instance, if you’re a business owner, a revocable living trust can ensure that your business continues to operate smoothly even after your demise, without the need for a lengthy probate process. The main benefit of setting up a revocable trust is avoiding probate, as this is a long and expensive procedure.

Moreover, since this is a revocable trust, you can amend or rescind the whole trust anytime when you’re alive. Nonetheless, setting up a trust takes more time than a will; upon death, the trustee has to administer the trust, just like a will. Still, fortunately, it won’t involve probate, provided it’s adequately funded.

Funding the trust is vital. You can do this by transferring asset ownership in the trust or enlisting it as a beneficiary of a specific property. If you fail to do this, the trust may undergo probate. This means that your assets could be subject to the probate process, which can be time-consuming and expensive. It’s also important to note that if a trust is not properly funded, it may not provide the intended benefits, such as avoiding probate or protecting your assets. Finally, record keeping should be prioritized, and the division of assets should be ensured promptly. A trust attorney can help you understand the funding requirements for your trust and ensure that your trust is properly funded.

Irrevocable Trusts

The other common type of trust is the irrevocable trust. It protects the assets of the beneficiary, even for a lifetime. Also, as the name suggests, an irrevocable trust can’t just be amended or revoked upon creation, meaning that the assets in the trust may or may not be seen as part of the estate. That said, irrevocable trusts come with a handful of benefits, including:

Creditors can’t touch the assets

Irrevocable trust assets are not considered the grantor’s, so they are shielded from all claims presented by creditors.

Reduced Estate taxes

Transferring the assets to the trust could reduce estate taxes. It could also invalidate estate taxes that could have been owed when the grantor passed away.

Controlled Division of Assets

Irrevocable trusts allow the grantor to stipulate when and how the assets will be divided among the beneficiaries. This gives the grantor better control over their future and guarantees that the assets will be utilized as they’d like, even after death.

Medical planning

An irrevocable trust will come in handy if the grantor requires long-term care and they want Medicaid. The trust will shield the assets and allow you to obtain government benefits. That said, it is crucial to remember that taxes arise from creating this trust. For instance, if you establish a trust that generates income, it could be taxed. Moreover, the trust could be subject to gift taxes if the assets transferred reach or surpass a specific value.

It’s essential to speak to a reliable trust attorney so that they can better explain such important but often overlooked details.

Testamentary trusts

Also known as will trusts, these types of trusts are created through a grantor’s will. Again, testamentary trusts are only initiated after the grantor’s demise, which gives them control of their assets until they die. These trusts can be set up to play different roles, including planning estate tax and inheritance disbursement. One significant advantage of setting up a testamentary trust is that it lets the grantor continue providing for the beneficiaries listed in the will.

The trustee’s role in a testamentary trust is to oversee the trust assets and divide them according to the guidelines given in the will. They are responsible for managing the trust’s investments, making distributions to beneficiaries, and ensuring that the trust’s terms are followed. Nonetheless, to create a testamentary trust, the will has to go through probate, which can be expensive. Moreover, this type of trust can help with estate tax planning since it allows for specific tax benefits, thus reducing the estate taxes owed.

Special needs trust

As the name suggests, this type of trust is set up to offer financial aid for people with disabilities without interfering with their ability to receive government benefits. It is also called a supplemental need trust. It is fabricated to be overseen by a trustworthy trustee who will ensure the money is only used to cover the beneficiary’s supplemental needs.

The trust covers multiple things, including dental & medical care, recreation, education, and transportation costs. However, it must meet all the legal requirements and not affect government benefits. So, for this one, and all other trust types, it would be best to consult a trust attorney, as they’ll help the trustee better understand what’s expected of them, like the fact that beneficiaries don’t have direct control or access to the trust assets.

Moreover, specific language must be integrated into the document so that it is not considered an asset when verifying admissibility for government aid programs like SSI (Supplemental Security Income) or Medicaid.

Benefits of Hiring a Trust Administration Attorney

Having reviewed the common types of trusts, you now understand the critical role a trust attorney plays. First, they know the legal requirements and general structure of trusts, along with their pros and cons. This understanding can bring you relief, knowing that the benefits of hiring a trust administration attorney far outweigh the potential costs. You will be able to make an informed decision, one that will best meet your needs. With that in mind, here are a few benefits of hiring a trust administration attorney:

They Understand the Terms of the Trust

A trustee is expected to know and obey the guidelines stipulated in the trust document. Lawyers write these stipulations, which can be difficult to understand. The best Cincinnati trust administration lawyer can quickly elaborate on the terms of the trust, especially where there are legal phrases.

As an inexperienced trustee, you must complete the terms of the trust to avoid making a mistake. Unfortunately, depending on how huge that mistake is, you could be in breach of fiduciary duty. Fiduciary duty means that legally, you are expected to be extra careful and put the needs of the trust before anyone else’s. For this reason, it would be best to hire a trust administration lawyer to avoid such issues.

They understand the law.

A trust administration attorney understands the law. Generally, there are federal and state laws surrounding trusts. The trust might be liable for the damages incurred if any laws are broken. A trust administration lawyer will understand these laws and better oversee the trust with this knowledge.

Avoid or Resolve Beneficiaries’ Conflicts

Most of the time, beneficiaries are family members and close friends, and at times, this can make it difficult to oversee the trust. This is especially true if you have unrestricted powers, according to the trust’s guidelines. For example, if the trust lets you divide funds among the beneficiaries as needed, it could be challenging in situations where you disagree with the reason presented by one or more beneficiaries for needing money. A trust attorney can review the trust terms and help the beneficiaries better understand their jurisdiction.

They Will Keep the Trust Administration Going

If you are a trustee in a given trust, you are going through a lot emotionally and even mentally. For this reason, you may want to delegate your responsibilities or at least get some professional assistance. Even though you’ll have to cover the trust administration fees, hiring a professional is a good idea. They will help you keep the trust administration process going and deal with disgruntled beneficiaries.

Payment Options

Fixed Rate

Some law firms will charge you a fixed rate to create a trust. However, the specific fee will depend on the time it will take to create the trust and the type of trust you want. However, the specific rate could be based on the estate assets, may have nothing to do with the above-mentioned factors, and could sometimes mean paying more than the average attorney fees. For this reason, some clients use the hourly rate payment method.

Hourly Rate

The other payment option is the hourly rate. While this might be difficult to compile, both sides have to agree to be open-minded. Unfortunately, this method is not as common as the fixed-rate technique. This is because it’s not a system that motivates a law firm to manage its resources and time.

Final Word

So, how much do lawyers charge to set up a trust? The specific rate depends on the payment method and estate assets. Here at Hess-Verdon & Associates, we don’t just help administer your trust; we also understand the law well enough to preserve the beneficiary’s and trustees’ rights.

With over three decades of experience, we have worked with various clients and have ample knowledge to ensure the process goes smoothly. Contact us for legal estate planning, probate code, commercial litigation, or real estate issues.