Naperville Trusts Attorney

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Is a Revocable Living Trust the Right Choice for You? 

If you're looking for an estate planning tool that can help you avoid probate, reduce taxes, and protect your assets during your lifetime and after your passing, consider a revocable living trust. This legal and financial document allows you to transfer your assets into the trust while retaining control over them as the trustee, and name your chosen beneficiaries who will then inherit your estate after your death. 

The benefits of a revocable living trust can include the following: 

• Flexibility as you can make changes to a revocable trust at any time while you’re alive
• Greater control over asset distribution than the probate process otherwise allows
• Avoidance of the probate process 
• Greater privacy as trusts are not made public 

An important note on irrevocable trusts: while these are an option, they are not typically what we recommend to clients looking to build a trust. This is largely due to their rigidity; the terms of irrevocable trusts are permanent and can never be changed. As such, they frequently do not offer the flexibility most people seek. You are encouraged to consult with an experienced estate planning attorney (like ours at Roscich & Martel Law Firm, LLC) before signing an irrevocable trust. 

Keep reading to learn about other commonly used trusts, including testamentary trusts, special needs trusts, and A/B (family/marital) trusts. 

Other Types of Trusts & Their Benefits  

A testamentary trust is a type of trust that is created in a person's will, which becomes effective after their death. This kind of trust enables the person who creates it to ensure that their assets are distributed according to their wishes while minimizing the impact of tax liabilities on their beneficiaries. Moreover, these trusts can be set up to provide for the care of younger children who may not be old enough or mature enough to manage funds on their own. 

A special needs trust is a legal arrangement designed to provide for the financial needs of dependents (minors or adults) with disabilities. When determining how you will provide for a loved one with a disability, this type of trust is worth considering. A well-drafted special needs trust can help ensure that individuals with special needs receive care and support without jeopardizing their ability to receive important government benefits, such as Medicaid and Social Security disability benefits. Additionally, it can assist in covering expenses that might not be provided for by government programs, such as therapies, medical care, and other special needs services. 

A/B trusts, also known as family/marital trusts, are estate planning tools used by married couples to avoid or mitigate taxes on the estate when it is passed to beneficiaries (this is commonly referred to as the "death tax"). A/B trusts effectively split the couple's estate into two parts (an A part and a B part), with one part designated to each spouse. When one spouse dies, instead of passing the full marital estate to the survivor, which may then exceed the death tax threshold upon the survivor’s death, the trustee allocates two separate inheritances, one for each spouse, thereby avoiding the death tax. 

Schedule a Consultation Today 

Trusts can be complex legal arrangements, and even small errors in drafting can have significant consequences. When drafting a trust, it's essential to consult with legal representation to ensure that the document reflects your wishes and is legally valid. An experienced attorney knowledgeable of Illinois estate planning laws can help ensure that your intent is accurately captured in the trust and advise you on the most effective ways to structure the trust to achieve your goals.  

Additionally, legal representation, like the wills and trusts attorneys at Roscich & Martel Law Firm, LLC, can help you navigate the various tax implications that come with setting up a trust, which can be especially important if you have a large or complicated estate. Ultimately, working with an attorney can help you feel confident that you have taken all the necessary steps to safeguard your assets and provide for your loved ones according to your wishes.

Contact our Naperville law firm today to learn more about trusts and whether they are a good fit for you and your needs.