3 Reasons Why a Revocable Living Trust Is a Good Idea in Illinois
The most common topic in estate planning that most people have heard about is a will. While wills are important tools that can help you make sure your assets are handled according to your wishes after you pass, they are not the only option to consider when planning for the future.
Some people examining their estate planning needs find that a revocable living trust is a great way to manage their estate while also helping their loved ones avoid some common challenges. To learn more, speak with a qualified DuPage County, IL estate planning lawyer who can explain your options and help you make informed decisions.
What is a Revocable Living Trust?
A revocable living trust is an arrangement that establishes a trust and allows you to place whatever assets you want inside it in your lifetime. These assets can be bank accounts, investments, real estate, or anything else of value.
Whoever establishes a trust needs to name a "trustee" who will control it. When you set up a revocable living trust, you have the right to name yourself as the trustee, so you can make any changes you want whenever you want. Since it is revocable, you can also cancel the trust at any time while you are alive if you change your mind about it and no longer think it is a good idea for whatever reason.
Another person you need to appoint when establishing your trust is a "successor trustee," who will be responsible for managing it after your death since it will continue to operate according to your stated wishes.
Four Benefits of Revocable Living Trusts
There are several reasons why people find a revocable living trust an attractive estate planning option. Some of the most common are:
Avoiding Probate
When someone dies, their estate needs to go through "probate," which is a legal process through which a will’s validity can be proven, debts can be paid, and assets can be distributed according to the deceased’s wishes. Probate can be expensive and time-consuming in Illinois, taking anywhere from a few months to several years to be finalized.
Revocable living trusts do not need to go through probate. Your assets are owned by the trust, so the court does not need to get involved to ensure that ownership is properly transferred. The successor trustee can distribute assets quickly and privately, without all the delays and costs of probate.
Protecting Privacy
Wills become public record when they go through probate. On the other hand, revocable living trusts are private matters, and the trustee and beneficiaries are the only people who will know how your assets are managed. This privacy can be very useful to beneficiaries who do not want others to know what they were left with.
Controlling Your Assets
Revocable living trusts offer more control over your assets, both during your lifetime and after. You get to specify exactly how your beneficiaries will receive their inheritance and when, whether you want that to happen when they reach a certain age or you want funds to be used for a specific purpose, like education. You can also appoint someone you are comfortable with and confident in to manage your trust on your behalf if you become incapacitated, so you can rest assured that your assets are handled as you would want even if you cannot do it yourself.
Contact a Wheaton, IL Estate Planning Attorney
Revocable living trusts offer many benefits, but they are not the right choice for everyone. They can be harder to set up than a will, and it might cost more to do so, depending on the case. However, many Illinois residents find that the benefits outweigh the drawbacks.
If you find yourself thinking about the future but are confused about the options and not sure what suits you best, a knowledgeable Lombard, IL estate planning lawyer can help. At A. Traub & Associates, we are dedicated to ensuring that our clients are comfortable asking all their questions to help them make informed decisions and get the peace of mind they deserve. Call us at 630-426-0196 for a private consultation.