Wills, trusts and other estate planning documents provide peace of mind and protect the future of your loved ones. A trust is created when one person, known as the grantor or trustor, transfers ownership of the property to another person, the trustee, to hold for the benefit of a third person (or people) known as a beneficiary. But more importantly, trusts are legally enforceable documents that ensure your final wishes will be carried out. Here are the facts on some common myths about trusts.
1. Trusts Are Only For Rich People
Trusts are not only for rich people. A trust can protect the assets of anyone who owns a home, has dependents to protect or wants their assets to be managed in a specific way after they are gone.
2. Trusts Help My Heirs – Not Me
A living trust manages your assets and estate while you’re alive. Revocable living trusts are a common way to manage your property during your life and transfer it outside of the probate system after your passing.
3. Hiring a Trusts Attorney Is Expensive
Setting up a trust with an attorney may be more expensive than writing will, but it can save you money in the future and save your heirs time and money after your death. The cost of creating a trust today will typically save you, the grantor, money in the long run.
4. Trusts Always Avoid Probate
Many trusts DO allow your estate to avoid probate, but a poorly drafted trust can result in requiring probate. It’s important to meet with an experienced estate planning attorney to explain your goals and wishes so they can advise you on the best trusts and other estate planning tools to fit your situation.
5. A Trust Protects You Against Creditors
Some trusts will protect your estate from your creditors. Asset protection trusts that are managed by an independent trustee are typically protected from creditors. Other trusts are not protected from debt collection, and your estate can still be liable for your debts.
There are many benefits to having a trust. It’s important to understand trust myths versus the facts. Illinois has very detailed provisions for how your assets will be distributed if you die without a will, or become incapacitated without choosing a guardian.
Do you have questions about protecting your assets in Illinois? Our experienced trust attorneys understand applicable laws and can advise you on the best options to protect your assets and your loved ones. Contact the Estate & Probate Legal Group at 630-687-9100.
AREAS WE SERVE: Cook, Dupage, Kane, Lake, and Will counties