what is a spendthrift trust: a guide for ohio residents

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WHAT IS A SPENDTHRIFT TRUST A GUIDE FOR OHIO RESIDENTS

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WHAT IS A SPENDTHRIFT TRUST

A GUIDE FOR OHIO RESIDENTS

WHAT IS A SPENDTHRIFT TRUST?

A spendthrift trust is a type of trust that you create if you want to leave an inheritance to someone who you

think may not be responsible enough to handle receiving a large

sum of money.

WHEN SHOULD YOU CREATE A

SPENDTHRIFT TRUST?

You should create a spendthrift trust when making a gift to a loved

one who is frequently in debt or who has proven to be bad at managing

investments.

HOW CAN YOU CREATE A

SPENDTHRIFT TRUST?

When you create a spendthrift trust, you can work with an attorney to

create a formal trust document that follows Ohio guidelines for valid

trust creation.

Your attorney will help you to facilitate the process of transferring

assets into the trust.

HOW DOES A SPENDTHRIFT

TRUST WORK?

The spendthrift trust protects an inheritance because the person

who is inheriting and who is irresponsible with funds does not

actually own the funds or get control over the entire inheritance.

THE TRUSTEE MANAGES ASSETS

WHICH THE TRUST OWNS

A trustee is chosen and named in the trust document.

The trust owns the assets and the trustee manages the assets on

behalf of and for the benefit of the trust beneficiary.

ASSETS PROVIDE FOR THE

BENEFICIARY

The person who is irresponsible with money is named as the

beneficiary of the trust.

Your trust document will provide instructions as to when and how the beneficiary receives portions of his

inheritance.

ASSETS ARE PROTECTED BY THE

STRUCTURE OF THE TRUST

Because the irresponsible heir does not own assets, creditors cannot go

after the money or property you leave to the heir.

The heir doesn’t get the money all at once, so he cannot squander it or

lose it quickly.

GETTING HELP CREATING A

SPENDTHRIFT TRUST

An experienced trust lawyer can provide you with help creating a

spendthrift trust.

Contact The Zimmer Law Firm today at 513-721-1513.