Planning for the future means making decisions that protect loved ones and property after your passing. When considering these, Ohio families often face the question of whether a will or a trust better fits their needs. Both tools serve different purposes, and the right choice depends on individual circumstances, family dynamics, and financial situations.
What Is the Main Difference Between a Will and a Trust?
A “will” is a legal document that outlines how assets should be distributed after death, while a “trust” transfers ownership of assets to a trustee who manages them for beneficiaries. ‘Wills’ go through “probate court,” which means the process becomes public record and can take months to complete. ‘Trusts,’ on the other hand, allow assets to pass directly to beneficiaries without court involvement, keeping matters private and often faster.
Do All Estates Need to Go Through Probate in Ohio?
Ohio law requires probate for most estates, although some exceptions exist. Assets held jointly with rights of survivorship or those with named beneficiaries typically avoid probate. Small estates valued under a certain threshold may qualify for simplified procedures, while properties titled in a trust name also bypass the probate process entirely, saving time and reducing costs for families.
How Does a Will Work in Ohio?
After someone dies, the will goes to probate court, where a judge validates the document and appoints an executor. The executor gathers assets, pays debts and taxes, and distributes property according to the instructions of the will. This process typically takes six months to a year, depending on the estate size and whether anyone contests the will. Court fees and lawyer costs are paid from estate assets.
What Are the Benefits of Creating a Trust?
Trusts offer privacy because they do not go through public probate proceedings. They also provide control over when and how beneficiaries receive assets, which helps families with young children or those concerned about spendthrift heirs. Additionally, trusts may help families avoid potential challenges that sometimes arise during probate court proceedings.
Which Option Costs More to Set Up?
Trusts generally require higher upfront costs than wills because they involve more detailed legal work and asset transfers. A simple will might cost a few hundred dollars, whereas establishing a trust can cost several thousand. However, trusts may save money in the long run by avoiding probate fees, court costs, and potential delays that tie up assets for extended periods.
Can Someone Have Both a Will and a Trust?
Many people benefit from having both documents. A trust holds major assets like real estate and investment accounts, while a pour-over will catches any assets not transferred to the trust before death. This combination provides comprehensive coverage and directs any remaining property into the trust after passing. They will also allow parents to name guardians for minor children, which trusts cannot do.
What Happens if Someone Dies Without Either Document?
When someone dies without a will or trust, Ohio’s “intestacy” laws determine who inherits the estate. The state follows a specific order of heirs, starting with spouses and children, then moving to parents, siblings, and more distant relatives. This process removes personal choice from inheritance decisions and may result in distributions that differ from what the deceased would have wanted for their family members.
How Often Should These Documents Be Updated?
We recommend reviewing estate planning documents every three to five years or after major life events. Marriage, divorce, births, deaths, significant asset changes, and moves to different states all warrant updates. In addition, Ohio laws also change periodically, which may affect how documents function. Regular reviews help our clients keep their plans aligned with their current wishes and legal requirements.
Take Control of Your Future With Our Knowledgeable Blue Ash Estate Planning Lawyers at Wolterman Law Office
Which would serve your needs better, a will or a trust? To get answers, contact our Blue Ash estate planning lawyers at Wolterman Law Office. For a free consultation, call today at 513-488-1135 or contact us online. With office locations in Loveland and Blue Ash, Ohio, we proudly serve clients in the surrounding areas.