October 01st - 3 minutes to read

Who Needs an Ohio Legacy Trust?

Interested in setting up an OLT? Here’s what you need to know.

a couple opening an ohio legacy trust
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You’ve worked hard for your money, but are you keeping it secure for your beneficiaries? Without protection, it can fall victim to life’s unpredictable twists and turns. Luckily, there are ways to safeguard your assets, like through an Ohio Legacy Trust (OLT).

Want to ensure financial security and leave a lasting legacy for your loved ones? Keep reading to learn what an Ohio Legacy Trust is, its advantages, and who might benefit from one.

What’s an Ohio Legacy Trust?

An Ohio Legacy Trust is a domestic asset protection trust (DAPT) governed by the Ohio Legacy Trust Act. You can think of an asset protection trust as a safebox that keeps your money away from financial hazards, like creditors and lawsuits, and in safekeeping for your beneficiaries. Like many state DAPTs, Ohio Legacy Trusts:

  • Are irrevocable, meaning that transferred assets can’t be taken out or changed once put in
  • Require a qualified affidavit to ensure legal compliance
  • Require a qualified trustee

Benefits of an Ohio Legacy Trust

If you’ve begun estate planning, OLTs are a great option to consider. While these trusts have many benefits, here are a few of the top ones.

Creditor Protection

The main goal of an OLT is to shield assets from future creditors and financial threats. Essentially, they’re a safety net that ensures hard-earned wealth remains secure, even if unforeseen financial challenges or legal disputes arise.

Controlled Distributions

OLTs let grantors dictate how distributions from the trust are made to beneficiaries. This, combined with a spendthrift provision, helps you ensure responsible management and longevity.

Wealth Preservation

OLTs are a great choice if your family’s financial legacy is at the forefront, as they allow you to pass down wealth while mitigating financial risk. Structuring them tax-efficiently can also help minimize the effects of estate and income taxes, allowing for even greater wealth preservation.

Who Needs One?

If you’re looking for extra asset protection, a DAPT may be a good fit. However, it’s always best to do your due diligence and consult a financial advisor before making any final decisions. After all, OLTS are irrevocable trusts.

Ohio Legacy Trusts aren’t a one-size-fits-all endeavor; their efficacy depends on each individual’s circumstances. While there’s no fixed list of who should or shouldn’t open one, here’s a list of individuals that commonly find them beneficial.

1. Those with High Net Worth

Those with substantial wealth are often exposed to increased risks from creditors and legal claims. A DAPT provides protection, allowing them to enjoy their wealth without worrying about losing it due to unforeseen challenges.

2. Business Owners

From business-related liabilities to legal disputes, business owners face various risks. An OLT can help keep personal assets separate from business ones, ensuring business setbacks don’t jeopardize personal gains.

3. Professionals in High-Risk Environments

Professionals in fields like medicine, law, and finance are susceptible to malpractice claims and lawsuits, making OLTs a great option. Those who engage in activities or professions with inherent risks, such as athletes or entertainers, can also benefit from OLTs.

Are you interested in opening an Ohio Legacy Trust but aren’t sure if it’s the best move? Royal Oak Financial Group has a team of financial experts ready to learn more about your needs and guide you in the right direction. Reach out to our team today!