When you are preparing your estate plan, you want to protect your loved ones and their futures. Failure to plan can result in your hard-earned assets being lost to estate taxes, lawsuits and fees. A Totten Trust can help protect your estate from death taxes and avoid probate.
A Totten Trust is a revocable trust that is a payable-on-death bank account that names an account beneficiary. A Totten Trust is a way to pass money, not property or other assets, to your heirs. An Illinois Totten Trust, called a payable-on-death account, is best for accounts with over $100,000 deposited. The account starter is the trustee of the account. The beneficiary has no access to the money until after the death of the account holder.
Key benefits of a Totten Trust are:
1. Creditors cannot file a claim against a Totten Trust once it has passed on to the beneficiary. While the account holder is alive, creditors can still claim your assets for unpaid debt.
2. The account owner can change the terms of the Totten Trust at any time because it is a revocable trust, and even close the account.
3. Totten Trusts are an easy way to transfer money after someone’s death and to avoid probate. Banks are very familiar with Totten trusts and
Do you have questions about protecting your loved ones after you are gone? Our experienced estate planning attorneys in Cook, Dupage, Kane, Lake, and Will counties in Illinois can advise you on the best options to protect your assets and loved ones. To talk to an estate planning attorney contact the Estate & Probate Legal Group at 630-687-9100.