Understanding the Differences Between Wills and Trusts in Ohio

When planning for the future, many people consider creating a will or a trust to determine how their assets will be distributed after their passing. While both serve as essential estate planning tools, they differ in legal requirements, benefits, and how they take effect. Understanding the differences between wills and trusts in Ohio can help you make an informed decision that best protects your assets and loved ones.

What Is a Will?

A will is a legal document that outlines how a person’s assets should be distributed after their death. It allows the individual, known as the testator, to designate beneficiaries, name an executor to manage the estate, and appoint guardians for minor children.

Key Features of a Will in Ohio

• Goes Through Probate – A will must pass through Ohio’s probate court, where a judge verifies its validity and oversees asset distribution.
• Takes Effect After Death – A will has no legal impact until the testator passes away.
• Allows Guardianship Designations – Parents can specify who will care for their minor children.
• Can Be Contested – Heirs or other parties may challenge a will based on claims of fraud, undue influence, or improper execution.

Requirements for a Valid Will in Ohio

Under Ohio Revised Code § 2107.03, 2107.02 a will must meet the following legal conditions:

• The testator must be at least 18 years old.
• The testator must be of sound mind and acting voluntarily.
• The will must be in writing (typed or handwritten).
• The testator must sign the will or direct someone to sign on their behalf.
• At least two competent witnesses (who are not beneficiaries) must sign the will (the witnesses must be at least 18 years old. See Section 2107.06).
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If a will fails to meet these requirements, Ohio probate courts may declare it invalid, and the estate will be distributed according to Ohio’s intestacy laws rather than the testator’s wishes.

What Is a Trust?

A trust is a legal arrangement that allows a trustee to hold and manage assets on behalf of beneficiaries. Unlike a will, a trust takes effect immediately upon creation and can distribute assets both before and after death.

Key Features of a Trust in Ohio

• Avoids Probate – Assets placed in a trust do not go through probate, allowing for faster and more private distribution.
• Offers Control Over Asset Distribution – A trust allows the grantor to set specific terms for when and how beneficiaries receive their inheritance.
• Helps with Incapacity Planning – A revocable living trust enables a trustee to manage assets if the grantor becomes incapacitated.

Types of Trusts in Ohio

Ohio law recognizes several types of trusts, including:

Revocable Living Trust

• Allows the grantor to retain control over assets during their lifetime.
• Can be modified or revoked at any time.
• Avoids probate.

Irrevocable Trust

• Cannot be altered after creation.
• Offers strong asset protection.

Special Needs Trust

• Provides financial support for an individual with disabilities without affecting their eligibility for government benefits.

Testamentary Trust

• Created within a will and only takes effect after the grantor’s death.
• Does not avoid probate but allows for structured asset distribution.

Which Option Is Right for You?

When a Will May Be the Best Choice

• You have a straightforward estate with few assets.
• You need to appoint a guardian for minor children.
• You prefer a simpler and more affordable estate planning tool.

When a Trust May Be the Better Option

• You want to avoid probate and maintain privacy.
• You own property in multiple states and want to avoid multiple probate proceedings.
• You need long-term control over how your assets are distributed.

Do You Need Both a Will and a Trust?

Many people benefit from having both a will and a trust. A trust manages significant assets and avoids probate, while a will ensures any remaining property outside the trust is properly distributed. Additionally, a will is essential for naming a guardian for minor children, which a trust does not allow.

Get Expert Estate Planning Guidance in Ohio

Choosing between a will and a trust depends on your financial situation, family needs, and estate planning goals. At Hilton Parker, we help Ohio residents create customized estate plans that protect their assets and provide peace of mind.

Contact us today at (614) 992-2277 to discuss whether a will, a trust, or a combination of both best suits your needs.