As a business owner (corporation or LLC), you have put in countless hours and hard work to establish and grow your business. But have you considered what will happen to your business when you pass away? Without a proper plan in place, your business may be at risk of falling apart, causing chaos and financial hardship for your loved ones and employees. That’s why business owners must create a Trust in Ohio to handle their business at death.
A Trust allows you to dictate how your business will be managed and who will be in charge after your passing. You can name a trustee who will be responsible for managing your business according to your wishes, ensuring its continued success and stability. This also provides peace of mind knowing that your business will be in capable hands, even when you can no longer manage it yourself.
Another important aspect of creating a Trust for your business is avoiding probate. Probate can be a lengthy and expensive process, which can tie up your business’s assets and leave your loved ones with a smaller inheritance. By creating a Trust, you can transfer ownership of your business to the Trust and avoid the probate process altogether. This can save your loved ones time, money, and hassle.
In addition to avoiding probate, creating a Trust for your business can also help minimize estate taxes. Ohio has an estate tax that can be quite substantial, and without proper planning, your business may be subject to these taxes upon your passing. However, by transferring ownership of your business to a Trust, you may be able to minimize or even eliminate estate taxes.
Finally, a Trust can also provide for the ongoing management and support of your business in the event of your incapacity. If you become incapacitated and are unable to manage your business, the Trustee you’ve named can step in and manage your business according to your wishes. This can ensure the continued success and stability of your business, even in your absence.
As a business owner, it’s important to plan for the future of your business in the event of your passing or incapacity. Creating a Trust in Ohio can provide the structure and guidance needed to ensure the continued success and stability of your business. Don’t leave the future of your business to chance – contact an experienced trust attorney to discuss the benefits of creating a Trust for your business.
You might be thinking, what type of trust do I need? The good news is, there is a resource from Elliott Stapleton, a Trust Attorney in Cincinnati, to review and decide on your type of trust.
Here is a list of 30 different types of Trusts to consider:
- Revocable Living Trust (RLT).
- Irrevocable Trusts
- Simple Trusts
- Complex Trusts
- Intentionally Defective Grantor Trust (IDGT)
- Charitable Remainder Trust (CRT)
- Charitable Lead Trust (CLT)
- Irrevocable Life Insurance Trust (ILIT)
- Stand-Alone IRA Beneficiary Trust
- Special Needs Trust (SNT)
- Minor Trust
- Spendthrift Trust
- Blind Trust
- Discretionary v. Non-Discretionary Trust
- Medicaid Trust
- Crummey Trust
- 2642(c) Trust
- Bypass Trust (B-Trust or Credit Shelter Trust)
- Qualified Terminal Interest Property Trust (QTIP Trust or marital trust)
- Dynasty Trust (GST Exempt Trust)
- Grantor Retained Annuity Trust (GRAT)
- Spousal Lifetime Access Trust (SLAT)
- Qualifying Domestic Trust (QDOT)
- Qualified Personal Residence Trust (QPRT)
- Incomplete Gift Non-grantor Trust (ING, NING, CING, DING)
- Domestic Asset Protection Trust – Ohio Legacy Trust
- Foreign Trust
- Electing Small Business Trust (ESBT)
- Qualified Subchapter S Trust (QSST)
- Pet Trust
Citation: https://cmrs-law.com/attorney-profiles/elliott-stapleton/30-different-types-of-trusts-choosing-the-right-one-for-you/