Trusts are commonly associated with planning for the management of assets after someone’s passing. Living trusts are rapidly gaining in popularity to avoid probate. In a living trust, your assets are transferred during your lifetime. When you die, the trust continues so that the assets do not need to be probated. A living trust may either be created as revocable or irrevocable. An experienced trusts and estate planning attorney can explain the differences and help determine which one may be favorable.
Probate is the legal process to administer and manage the estate of a person who has died. Illinois does not use the Uniform Probate Code so it can be beneficial to make a living trust to avoid Illinois’s complex probate process.
There are several key benefits to creating a living trust:
1. Control Distribution Of Your Assets
A living trust allows you to distribute your assets when you want to, even after your death; compared to a will which typically distributes assets after probate.
2. Speed the Distribution of Assets
Probate can take many months. Avoiding probate can mean your loved ones receive the money and assets you want them to have much sooner.
3. Avoid Court Challenges
Illinois law makes it difficult to win a challenge to a living will.
4. Save Money
Probate requires the expense of both an executor and attorney.
5. Living Trusts Are Private
A will is a public document and the terms of your will are filed with the court, and part of the public record. A living trust is a private document that is not available to the public.
Illinois living trusts do not protect your assets from an estate tax. Your estate includes property owned by a revocable living trust. If you are married and live in Illinois, you and your spouse each have a $4 million state estate tax exemption. Only estates that exceed these totals are taxed. It is possible to reduce and avoid estate tax using a marital trust. An experienced trusts and estate planning attorney can help you decide your best option to save time and money and protect your loved ones.
Do you have questions about living trusts in Illinois? Our experienced trust attorneys in Lombard Illinois understand applicable laws and advise you on the best options to protect your assets and loved ones. To talk to a trust attorney contact the Estate & Probate Legal Group at (630) 382-8063.