A Trust is a legal arrangement where one person (the "grantor") gives control of his property to a trust, which is administered by a "trustee" for the "beneficiary's" benefit. The grantor, trustee and beneficiary may be the same person. In the event of incapacitation or death, the grantor names a successor trustee, as well as successor beneficiaries.
Revocable Living Trust
A Revocable Living Trust, created while you're alive, lets you control the distribution of your estate. You transfer ownership of your property and your assets into the trust. You can serve as the trustee or you can select a person or an institution to be the trustee. A living trust is an effective means of avoiding probate and providing for management of assets. It can be revoked by the person who created it during that person's lifetime. If you're the trustee, you will have to name a successor trustee to distribute the assets at your death. If you are interested in a living trust, you should seek the advice of your attorney in order to draft a trust instrument which best suits your particular needs and circumstances. Click here for a fact sheet from the Ohio State Bar Association.
Irrevocable Living Trust
A trust which has terms and provisions that cannot be changed.
A person appointed by the court to manage your financial affairs if you are judged to be incapable of doing this for yourself. A court-appointed conservator may be necessary if you have not executed a durable power of attorney for finances prior to becoming incapacitated. An attorney must be consulted to prepare the legal paperwork and to file the petition requesting a court hearing.
A physician must certify that you are temporarily or permanently incapable of managing your financial affairs and evidence must be produced that you have property or assets that would be wasted unless properly managed by someone else.
A family member is usually appointed to be a conservator, but a friend, an attorney or another person may be appointed. If you disagree with the conservatorship petition you have the legal right to retain an attorney to challenge the petition. A limited conservatorship may be granted, allowing you to retain control over specific financial matters.
Click here to read related fact sheets from the Ohio State Bar Association.