Kathryn T. Joseph & Associates, Inc.

How to properly structure a trust

When properly structured, a trust can be an effective estate planning tool for Ohio residents. By putting an IRA or a life insurance policy into a trust, beneficiaries gain access to an asset that can continue to grow either tax-free or tax-deferred. Individuals who create a trust can benefit because they determine how distributions are made. In some cases, distributions from a trust can change as a beneficiary ages or in other ways to meet its goals.

The trust can be written in a broad or narrow range depending on the needs and goals of the grantor. However, distributions may need to conform with IRS guidelines regardless of how the trust is structured. When creating a trust, it is a good idea to think about who will act as trustee. While most trustees are close friends or family members of the grantor, they may not be the best people for the role.

This is because they may not have the legal or financial experience to handle a complicated trust. Therefore, it may be a better idea to hire a bank or other financial institution to oversee it. A corporate directed trust could be a compromise for those who don't want to burden their current financial adviser with the legal and administrative aspects of overseeing a trust.

Talking with an attorney or financial adviser may be ideal for those who want to begin the process of trust planning. Taking this step may make it easier for an individual to determine if a trust is necessary, what type of trust should be chosen and who should be the trustee. If a person already has a trust, it is generally a good idea to review it with an attorney every three to five years.

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Kathryn T. Joseph & Associates, Inc.
Executive Commons West
29425 Chagrin Blvd.
Suite 305
Cleveland, OH 44122

Toll Free: 888-335-6650
Phone: 216-245-0504
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