A trust could be a reliable alternative to a last will and testament. Some may be created while in good health. There are other trusts that may be identified to a will and take effect after you depart.
If you are interested in learning more about how to create a trust, speaking with an attorney might be a prudent decision. A capable Naperville trusts lawyer may be knowledgeable about a type of trust that could meet your needs.
A trust, as defined by Chapter 760 of the Illinois Compiled Statutes, is an instrument created by a will, deed, agreement, declaration, or other written document. The maker of the trust is called the settlor, while those who receive monies from it are referred to as beneficiaries. A trust is managed by a trustee, who may be chosen by the settlor, or appointed by the court.
A settlor in Naperville, who has specific ideas for how and when their assets should be distributed to their beneficiaries, might find a directed trust to be appealing. Per 760 ILCS 5/16.3, a directed trust must be administered per its instructions. The directions for the trust are called the governing instrument.
Although some types of trusts allow the trustee some discretion, a directed trust does not. If a settlor would like to name a trust advisor to determine the prudent investment of the monies, they may do so in accordance with statute. A skilled Naperville trusts attorney may be well-informed about other trust protections that may be included in the governing instrument.
In Naperville, a testator may include a provision in their will that funds a trust. The will could give instructions for how the trust should be managed, or it may refer to a governing instrument. Moreover, per 755 ILCS 5/4-4, a settlor could fund and manage a trust during their lifetime, but then add more money to it after they depart, by using assets identified in the will.
Generally, trusts that are created during a person’s lifetime may be revoked by the settlor while they are still alive. By statute they are authorized to modify the terms of the trust while they are living, even if they do so after their will is already in effect. A competent trusts lawyer in Naperville may be able to explain the difference between revocable and irrevocable trusts to interested clients.
Some residents of Naperville may have a favorite charity or philanthropic cause. They may wish to bequeath all or a portion of their assets to an organization. Moreover, some philanthropists choose to convey a tract of land for use as a site to help others.
Per the Charitable Trust Act, which has been codified by 760 ILCS 55, settlors in Naperville may form a trust for humanitarian purposes. A trustee would still be required to administer the monies, as one would for other types of trusts.
A situation may arise, however, when the funds in the trust have become so diminished that they might not be able to assist the beneficiary any longer. When this happens, a trustee is authorized by 760 ILCS 55/15.5 to inform the Office of the Attorney General of the changed circumstances and seek to have the trust terminated.
If you are considering a trust as an alternative or an addition to a last will and testament, you might be able to choose from several types. A seasoned Naperville trusts lawyer may have the benefit of significant experience with both revocable and irrevocable instruments.
Call the law offices of a Naperville legal professional to schedule a consultation about a trust. Appointments may be available today.