Page 24 - Leisure Living Magazine August 2016

Revocable “Living” Trust Continued from page 23
an executor of a will because a trustee does not file reports and accounts with a court, although the Ohio Trust Code requires the trustee to provide mandatory financial reports to benefi- ciaries).
Lower Costs. A revocable trust avoids pro- bate costs, which typically include court costs, appraisal fees, bond premiums, and executor commissions. Attorney fees are usually less.
Efficiency. The trustee may distribute trust property to beneficiaries soon after the grantor’s death.
Avoidance of Multiple Probate Proceedings. If real estate is owned in other states, a revocable trust may be used to avoid separate probate pro- ceedings in those other states.
Q: What are the disadvantages of a revocable trust?
A: Initial Cost. Education, preparation and
implementation of a revocable trust will be more expensive than creating a will.
Absence of Court Review. Because probate court does not oversee the administration of a revocable trust, the risk of error, whether inten- tional or unintentional, may be greater than the probate of a will.
Longer Statute of Limitations. A challenge to a revocable trust must be made within two years, whereas someone wishing to challenge a will must do so within three months.
Q: Who should prepare my revocable trust?
A: You should consult with a lawyer skilled in probate, estate planning and tax matters. Be wary of creating a revocable trust without consulting directly with a lawyer first.
This “Law You Can Use” column was provided by the Ohio State Bar Association. It was prepared by Paul S. Klug, a partner with the Cleveland firm, Ziegler Metzger, LLP. Articles appearing in this column are intended to provide broad, general information about the law. Before applying this information to a specific legal problem, readers are urged to seek advice from an attorney.
24 |LeisureLiving August 2016
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