Trusts Are Among The Most Effective Estate Planning Tools
Your wishes to provide security for your beneficiaries can be undone if you don’t have the appropriate estate planning documents in place. For many families, the appropriate estate planning document is a trust.
At Blacha Law Office, we draft trusts and other estate planning documents for clients in Naperville, Joliet and the surrounding areas.
What Is A Trust?
A trust is a powerful estate planning document that you can use to manage your assets while you are alive and protect your beneficiaries after you become incapacitated or die. A trust can be the foundation of a well-crafted estate plan. It can also serve a supplementary role to address a specific issue or concern.
There are many kinds of trusts that can help you accomplish specific goals such as:
- Minimizing or eliminating taxes
- Avoiding the cost, delay and publicity of a probate proceeding
It is important to set up the right kind of trust to accomplish your goals. We are available to discuss your trust with your family members so they understand how the protection of a trust works. We are also able to advise successor trustees to ensure that the assets you provide to your beneficiaries continue to enjoy the protections of the trust.
A revocable trust is a living trust that can be updated or voided at any time by the grantor and/or trustee. Assets placed into a revocable trust are still owned by the grantor, who must claim any revenue the trust generates as part of their annual tax return. Flexibility is the primary advantage of a revocable trust; since the assets are yours, you are free to change your mind about how they are distributed by the trust. For example, if you have a falling out with a beneficiary, you can decide to direct those assets elsewhere.
Once the grantor dies, a revocable trust will automatically become an irrevocable trust. Continue reading to learn more about irrevocable trusts.
Unlike a revocable trust, an irrevocable trust is difficult to update or void after the ink dries on the documents. The approval of everyone named in the trust is necessary to modify an irrevocable trust.
So, with such a burden in the event of wanting to make changes, why do people decide to create an irrevocable trust? Tax liability is the main reason. Unlike a revocable trust, which requires grantor to continue paying taxes on revenues generated by the assets, the assets in an irrevocable trust are no longer yours; they belong to the trust. Therefore, you will not have to pay taxes on the growth or revenue they generate.
A Variety Of Trusts To Suit Your Family
There is a wide range of available trusts to meet the unique needs and goals of individuals, couples and families in Illinois. Examples include:
- Special needs trusts
- Charitable trusts
- Life insurance trusts
- Generation-skipping trusts
- Asset protection trusts
- Spendthrift trusts
- Blind trusts
- Credit shelter trusts
A knowledgeable lawyer from our firm can help you take stock of your situation and recommend the right trust or trusts to meet your needs and help you achieve your estate planning goals.
Understand What Your Wills And Trusts Accomplish
To schedule a free consultation to discuss trusts and estate planning, call 630-283-1987 or email the firm. We have offices in Naperville and Joliet, and we serve clients in DuPage, Will, Cook, Kane and Kendall counties. We are fluent in Polish.