If you are looking to protect your assets or set the framework for what must be done to finances after you move on, then you need to consider the numerous benefits of trusts in Lombard. After speaking with a dedicated attorney, you could draft a plan for your estate that includes a trust. Contact an attorney today.
Some reasons that a person would want to create a trust include the ability to avoid probate. Avoiding probate means both the ability to avoid the decedent’s estate and avoid a guardianship. Trusts can build in the kind of during incapacity and protections whereby, their property can be used how they see fit during each of those circumstances, but the main one is that when people want to avoid probate, then their assets need to be in a trust or some other non-probate asset.
However, the big one for that is the house. A lot of times, people have payable on death accounts with their children. They may have life insurance that they have divided between their children and their children are beneficiaries on their retirement plans, but then comes the house where they do not want to put their children on title to their house, so they just have it in their name. Even though all the other property may pass outside of probate, if a person dies and the house is in their name, then a probate estate needs to be opened in Illinois to deal with that piece of real estate.
A lot of times, people create a trust because they could actually move their house into the trust, and then when they die, their successor trustee is able to deal with their real property in addition to everything else. The second main reason is that when a person becomes incapacitated, a trust kind of has a built-in feature where if the person becomes incapacitated, then there is someone who can take their place and who may use their money for their benefit.
There is a separate provision in there that states this. The alternative is that it could be a guardianship where they have to go to court. Their loved ones need to go to court to be appointed as their guardian so they have the authority to use their money to take care of them.
A trust works differently from a bank account because a bank account could be a very simple way of dealing with money. If there is a beneficiary or some sort of joint tenancy or payable on death provision, a bank account could pass property outside of probate very simply, but a trust essentially provides a whole slew of provisions and terms and conditions that they have set during their life as to how they want that money used. Trust accounts that are in the name of the trust need to be administered pursuant to the trust terms. A trust essentially allows for the passage of property outside of probate, but also allows people to have much greater control on how that is done and how they want the assets to be used.
People do not need to choose their attorneys when they create their trust. They may decide who they want to help with administering it later on. A lot of times, though, it is generally beneficial if the attorney who prepared the trust may have some insight into what the clients were thinking prior to their death and what their thinking was and in including certain provisions in the trust. It may make sense to go to those same attorneys in order to help administer the trust just because of the relationship. However, there is no requirement in Illinois that the attorney who drafted the trust needs to be the attorney to assist in its administration.
Examples of some things that a person should be considering before meeting with an attorney to create their trusts essentially mirror those are going to meet an attorney to create a will. A trust may serve as a will substitute and people need to decide, they need to consider where they want their property to go when they die, they would want to consider how they want that property to go. For example, do they want it to go to people outright? Do they want to keep it in other different trusts? Who do they want to name as their successor trustees in the event they are incapacitated or in the event they pass away? Much of what people want may be included within the benefits of trusts in Lombard, but meeting with an attorney is the first step toward vetting the options available.
The benefits of trusts in Lombard are numerous. However, a trust still may not be your best option. To get a better understanding of the benefits of trusts and what other options you may have, you need to speak with a dedicated attorney. Legal help is one call away.