The Ohio Management Modernization Act, which became effective on March 27, 2013, now allows Ohioans to put assets in a trust (of which they are a beneficiary) and protect those assets from creditors. This newly permitted trust is called an Ohio Legacy Trust.
An Ohio Legacy Trust must be irrevocable and the settlor (the person setting up the trust) cannot be the trustee. So the settlor has to surrender a certain degree of control over the assets placed in such a trust.
The new Ohio statute, however, allows the settlor to retain various powers. For example, the settlor can retain the power to veto distributions, remove and replace trustees, and essentially direct trust investments. In setting up a legacy trust, you have to give up some control – – but certainly not complete control – – over the assets placed in the trust.
Ohio is now one of the most debtor-friendly jurisdictions in the country. It offers various opportunities to protect your assets. And you certainly do not have to surrender complete control of assets in order to protect them.