Living trusts are designed to help you determine how and when your business ownership interests will be divided in the event of your death, much like wills do for your personal assets. The trust may also determine a line of succession for your business and dictate which employees are to assume certain roles if you are no longer able to do so yourself. If you are considering establishing a living trust for a small business, you may be wondering how it works, what it means and what steps you will need to take to get the job done.
Thanks to technology and changes in regulations, people may have new opportunities to invest in commercial real estate in Ohio and around the country. In the past, commercial real estate investing usually required people to use their personal network. However, the JOBS Act allows developers and sponsors to solicit accredited investors, and more than 12 million households have this qualification. Commercial real estate investing is moving toward a greater transparency, and investors and sponsors can be more easily connected.
Ohio investors might want to think about estate planning as a lifetime plan for wealth management and for educating their children and grandchildren about finances. Thinking about estate planning across a lifetime rather than simply at the end of one's life allows for strategies such as gift giving to reduce the value of the estate. Another effective strategy may be using trusts to fund companies. This can be done as a family as a way of learning about investing. Trusts can also be set up to fund education or the purchase of a first home.
Probate is the legal process by which an Ohio court supervises the distribution of the estate of a deceased person. Typically, the court will appoint the executor named in the will to gather information about assets and liabilities, pay outstanding debts from the estate and distribute assets to beneficiaries. Probate requires time, attention and paperwork. However, a living trust may allow assets to pass to beneficiaries without going through the probate process.
Some Ohio seniors may want to set up an educational trust to provide for their grandchildren. A trust does have some advantages over a 529 savings plan. For example, a 529 savings plan can affect a person's financial aid eligibility, and it limits the contribution of a couple to $28,000 per year per recipient if federal gift tax is to be avoided. An educational trust can be set up in such a way that it supports more than one generation of family members.