When planning your estate, you may want to ensure your loved ones are cared for after your passing. As such, you may have questions regarding how long a Trust Fund can be maintained in Ohio. This can help ensure you plan correctly to provide for your Beneficiaries in the years after your passing. The following blog explores what you must know about whether or not a trust fund can expire and why it’s imperative to connect with an experienced Medina County, Ohio Trust preparation lawyer who can help ensure your assets and loved ones are protected.
Does a Trust Fund Expire?
When you create a Living Trust, it’s important to understand that your Trust will become Irrevocable upon your passing. This means that no one will be able to make any changes to the Trust. As such, the Living Trust will last the entirety of your lifetime. When it becomes an Irrevocable Trust upon your passing, it will generally remain viable for 21 years after your passing. This is to ensure that any Beneficiaries who are not yet legal adults can receive the assets they are entitled to when they are adults.
It’s important to understand that in some instances, you’ll find that you can adjust the terms and conditions of the Trust to extend past the general expiration date. For example, you can create a Special Needs Trust that can help support someone with additional needs for the rest of their lifetime or a Generational Trust that can last for decades.
What Happens After a Fund Ends?
When the remaining assets of a Trust Fund are distributed to their rightful Beneficiaries and there is nothing left inside the Fund, it will end. Essentially, the Trustee responsible for managing the funds will sign a dissipation notice, which effectively ends the Trust Fund.
There are advantages to creating a trust fund that will dissipate within the first year following your passing. One of the significant benefits is that you will not have to pay the annual Trustee fee, which is taken from your Fund to pay the Trustee for their efforts. However, you may want to ensure your Beneficaires receive as many assets as possible, so having the trust end within the first year may be in your best interest.
As you can see, there are many things you’ll need to consider when creating a Trust Fund, as you’ll want to ensure you can provide for your loved ones even after your passing. At Krause Law, we understand how complex these matters can be, which is why we’re ready to assist you through these matters. Connect with us today to learn how we can help you provide peace of mind for your future.
