Clients frequently ask about potential income tax aspects of an Ohio Legacy Trust.
An Ohio Legacy Trust will likely have no effect at all on your income tax situation. The trust will be structured so that it is a grantor trust pursuant to §677 of the Internal Revenue Code. It meets the requirements of this Code section because trust income may be distributed to the Grantor without the approval of any adverse party. In less technical terms -- any income from the trust will simply be reported on your personal income tax return.
An Ohio Legacy Trust can also hold S Corporation stock because it is a grantor trust. There are certain limitations on what kind of entity can be an S Corporation shareholder. A grantor trust is one of the entities that can own S Corporation stock.
There are many considerations that go into setting up an Ohio Legacy Trust (or a domestic asset protection trust in any other state that allows one). But as long as the trust is properly drafted, you should not have to worry about its impact on your personal income tax situation.