The belief that trusts only provide a way for the wealthy to pass on their assets to their heirs is a common misconception. In fact, almost anyone can use a trust to protect and distribute assets at the time of their passing.
Just as each individual’s circumstances vary, so does the best trust for their needs. It is vital to receive the guidance and advice of a reliable trusts lawyer to determine the best option for your needs.
The Benefits of a Trust
Trusts offer several benefits to individuals and represent a key part of the estate planning process. For example, your last will and testament will become public after filing it with the court. Trusts, on the other hand, are completely private.
Trusts enable your beneficiaries to access the assets held within the trust immediately following your death as well, eliminating the need for a lengthy, complex probate process. Further, trusts also offer more flexibility when it comes to estate management.
For example, establishing a revocable trust allows you to alter your plans at any point, while a living trust enables you to draw income from the trust until it passes to your beneficiaries at the time of your death.
The Most Common Trusts
There are various trust options to suit your needs and provide for your loved ones, including:
Like your last will and testament, a living trust is a document containing your wishes regarding asset distribution after your death. Unlike other types of wills, however, you can establish a living trust and remain in control of it–and the beneficiary of it–while you’re still alive. The trust simply owns the assets that you put into it, such as your home, possessions, investments, or bank account. Living trusts will ensure that asset distribution remains private and out of the probate court process.
Revocable trusts offer a substantial amount of flexibility. Like a living trust, revocable trusts “own” the assets you put in them. As a result, you can draw income from the trust until your death, at which point the property will transfer to your heirs. Unlike other types of trusts, revocable trusts enable you to make changes at any point before your death.
Alternatively, you cannot alter the conditions of an irrevocable trust after creating it. An irrevocable trust features permanent, binding instructions regarding asset distribution.
Special Needs Trusts
Special needs trusts include provisions for disabled children or adults. Through a special needs trust, you or a third party can provide for a disabled family member financially while allowing them to remain eligible for government benefits.
A children’s trust ensures that you can provide for your minor children before and after your death. Depending on the terms of the trust, you may transfer the trust’s assets to your children upon your death or when they reach a certain age. You can also set the trust up for specific purposes, such as college tuition.
How to Establish a Trust: Finding an Experienced Illinois Trusts Lawyer
Creating a trust during the estate planning process can establish a secure financial future for you and your loved ones. Fortunately, setting up a trust fund is a relatively straightforward process, especially when you create your trust with the assistance of an experienced Illinois trusts attorney.
At the law office of DeBlasio & Gower LLC, we will assist you in creating, filing, and validating your trust. For more information on how we can help you establish a trust or assist with any part of the estate planning process, please get in touch with our staff today at 630-560-1123.