For many Ohio families, the single most effective way to avoid probate is through a revocable living trust. Unlike a will, which must pass through probate to take effect, a properly funded trust allows your assets to transfer directly to your beneficiaries — privately, quickly, and without court intervention.
What Is a Revocable Living Trust?
A revocable living trust is a legal document that holds title to your assets while you’re alive, with instructions for how those assets should be managed and distributed after your death.
• Revocable means you can change or cancel the trust at any time while you’re alive and mentally competent.
• Living means it’s created and takes effect during your lifetime.
You (and your spouse, if married) typically serve as the trustee(s), controlling your property just as you did before. Upon your death or incapacity, a successor trustee you’ve chosen steps in to manage or distribute your assets.
How It Avoids Probate in Ohio
Probate is necessary when an asset is titled solely in your name with no beneficiary. Assets owned by your living trust are not in your personal name — they’re owned by the trust. When you pass away, the trust continues to exist, and the successor trustee simply follows your written instructions to distribute assets. No court approval is required, so the process is private and much faster than probate.
Steps to Set Up and Use a Revocable Living Trust
1. Work with an Estate Planning Attorney
Ohio trust laws have specific requirements, and proper drafting is essential. Your attorney will prepare the trust document and guide you through funding it.
2. Name Your Trustees
You’ll act as the initial trustee, and you’ll name a successor trustee (or trustees) to manage the trust after your death or incapacity. Choose someone trustworthy, organized, and capable of handling financial matters.
3. Decide on Beneficiaries and Instructions
Clearly state who will receive your assets, in what amounts, and under what conditions. Trusts can provide for immediate distribution or hold assets for children, special needs beneficiaries, or other long-term purposes.
4. Fund the Trust
This is where many people fail. Funding means transferring ownership of your assets into the trust. For example:
- Retitle real estate deeds to the trust.
- Change account titles for bank and brokerage accounts.
- Assign business interests to the trust.
- Add personal property using an assignment document.
5. Coordinate with Beneficiary Designations
Keep retirement accounts and life insurance beneficiary designations up to date. In some cases, you may name the trust as the beneficiary; in others, direct designation to individuals is better.
6. Review and Update Regularly
Life changes — births, deaths, marriages, divorces, or major asset acquisitions — mean your trust should be reviewed and possibly updated.
Benefits Beyond Probate Avoidance
• Privacy: Probate is public record; trust administration is private.
• Continuity: If you become incapacitated, your successor trustee can step in immediately without court-appointed guardianship.
• Flexibility: You can amend or revoke the trust at any time while alive and competent.
• Control: You can dictate how and when beneficiaries receive their inheritance.
Bottom Line
A revocable living trust is one of the most versatile and effective probate-avoidance tools in Ohio — but it only works if it’s drafted correctly and properly funded. By pairing your trust with coordinated beneficiary designations and other probate-avoidance strategies, you can give your loved ones the gift of a smooth, private, and cost-effective transfer of your estate. By planning ahead, you can ensure your assets are transferred smoothly, privately, and according to your wishes. Call Krugler Law at 513-916-1600 today to discuss how a revocable trust can fit into your estate plan and provide peace of mind for you and your family.