According to a recent survey from Caring.com, only about 32.9% of U.S. adults currently have estate planning documents such as a will or living trust. A last will and testament and trust are two essential components of any complete estate plan. With a trust, you can specify how your assets should be distributed to beneficiaries upon your death or sudden incapacitation. Also, the trust allows you to bypass the lengthy and expensive probate process and achieve a variety of different goals.
If you need assistance drawing up a trust or other estate planning documents, you should consult with an experienced Illinois estate planning attorney as soon as possible for reliable guidance. Here at Christopher S. Nudo, Attorney at Law, our legal team is committed to offering experienced legal services and knowledgeable guidance to clients facing estate planning issues, including wills, trusts, and trust administration.
We’re here to discuss your unique situation, explain the different estate planning options that are available to you, and help outline a plan that will meet all of your needs. Our firm is proud to serve clients throughout Rolling Meadows, Elgin, and the Northwest suburbs of Chicago, Illinois, so call or reach out today to schedule your own case consultation.
Understanding Trusts
A trust can be described as a fiduciary arrangement that stipulates how a person’s assets will be distributed to inheritors when they pass away, usually without the probate court’s involvement. The trust allows a person (trustor or guarantor) to appoint a third party (trustee) who will help handle and manage their final affairs and distribute assets and property to beneficiaries and heirs upon their death or sudden incapacitation.
Generally, there are two main types of trusts – revocable trusts and irrevocable trusts.
Revocable Trusts
A revocable trust, also known as a living trust, is one that can be modified, revoked, or altered by the trustor while they are still alive. As long as the guarantor is still living, they can hold and manage all assets in the revocable trust. Nonetheless, the guarantor can name a successor trustee to take over the trust affairs when required.
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Irrevocable Trusts
Conversely, an irrevocable trust is one that cannot be modified or altered by the guarantor. Once the irrevocable trust is signed, the guarantor will relinquish control over all trust assets or properties. Also, the guarantor will give up the legal ownership rights of all assets put in the trust. Assets placed in an irrevocable trust are protected from taxes, lawsuits, and debt collection against the trustor.
Process of Creating a Trust
Here are the steps involved in creating a trust in Illinois:
- Determine the type of trust you are creating.
- Evaluate your assets and decide the property you want to include in the trust.
- Choose a trustee or successor trustee.
- Decide the beneficiaries and heir to the trust assets.
- Hire a lawyer to help you create the trust document.
- Sign the trust document in front of a notary public.
- Change the title of any trust asset with a title document
- Fund the trust.
In order for the trust to be effective, it is important that you follow all essential legal requirements. An experienced trust attorney can guide you through the process of drafting the trust document and can take steps to ensure that it is legal while also mitigating any potential disputes or invalidation.
Why Having a Trust is Important
Having a trust as part of your estate plan allows you to achieve the following:
- Bypass Probate: The primary advantage of creating a living trust is to bypass the costly and lengthy probate court process. With a trust, your surviving loved ones do not have to trudge through the long delays and expensive fees associated with Illinois probate court proceedings upon your death.
- Choose a Successor Trustee: As the trustor, you can choose a trustee or successor trustee to handle and manage your estate or distribute trust to inheritors upon your death, according to the provisions of the trust document.
- Make Adequate Provisions for Minor Beneficiaries: Also, you can keep assets, property, and funds in a trust until a future date. With this, you are able to make adequate provisions for minor children until they reach a certain age.
- Protect Assets: Also, a living trust makes it possible for you to protect your property and assets should you become disabled or mentally incapacitated. Assets put into the trust will be protected from lawsuits and debt collection against the trustor.
- Maintain Privacy: Probate proceedings are a matter of public record. Since a trust bypasses probate, it helps maintain your loved one’s privacy. Hence, the trustee can transfer assets to beneficiaries without the publicity or involvement of the probate court.
- Reduce Estate Taxes: Trusts also make it possible to reduce or eliminate estate taxes. When trust beneficiaries receive their distributions, they’re not required to pay taxes on the assets received.
How an Experienced Trusts Attorney Can Help
It’s important to remember that it’s never too early or too late to begin planning for life’s uncertainties. Should you become incapacitated, unavailable, or otherwise unable to voice your opinion, your family members can benefit from knowing exactly what your wishes are. An experienced trusts attorney can help evaluate your needs and determine the right estate plan that best suits your needs and those of your family members.
At Christopher S. Nudo, Attorney at Law, we have the experience and resources to assist and guide clients through the complexities of estate planning. As your legal counsel, we will review your unique situation and strategize an effective estate plan that best suits your needs. Our team will help draft important documents, including trusts, and determine the best path forward for you and your loved ones. We will work meticulously to address any questions or concerns you may have and do everything we can to help you make informed decisions. So don’t wait. Call or reach out to our firm today to schedule your own case consultation.
TRUSTS ATTORNEY SERVING ROLLING MEADOWS, ILLINOIS
If you need proper guidance drafting a living trust and want to understand how estate planning works, contact Christopher S. Nudo, Attorney at Law, today to schedule a simple case assessment. Our legal team can offer you the detailed legal counsel and strong advocacy you need to navigate important decisions. Our firm is proud to serve clients throughout Rolling Meadows, Elgin, and the Northwest suburbs of Chicago, Illinois — so call or reach out today for help!
