Trust Planning: The Purpose of a Trust and How to Choose a Trustee

 Posted on July 06, 2016 in Estate Planning

Planning a trust can initially feel like an overwhelming task, especially when arranging it in tandem with a will. The reality, though, is that establishing a trust can be a very effective tool if you want to be able to transfer your property or certain assets to someone while you are still alive. Whereas a will is a plan that is only executed after you pass on, a trust is a planning tool that can be carried out while you are still living.

What Is the Purpose of a Trust?

The state of Illinois allows a trust to be “created by a will, deed, agreement, declaration or other written instrument”. State law says that the person establishing a trust may indicate any rights, powers, duties, or limitations applicable to the chosen trustee when establishing the trust. Additionally, the grantor (the person creating the trust) may also specify any immunities that are applicable to the trustee or beneficiary.

In other words, when you create a trust, you not only get a say over who may receive your assets but you also have a say when it comes to the boundaries and parameters surrounding those assets. In general, a trust is created to allow someone else to take possession of (and manage) your assets while you are still alive, which usually works to someone else’s benefit, such as the trustee to whom you are granting rights. You should consider creating a trust if the smooth transfer of assets to a beneficiary is an appealing arrangement to you. If you want to provide your family or friends with a secure future and you want to feel good about the utilization of your assets, then planning a trust might be a good option for you.

Choosing a Trustee

There are a number of different kinds of trusts you can create, depending on your wants and needs. You can create everything from special needs and pet trusts to children’s trusts and irrevocable trusts. When choosing a trustee, there are a number of factors to consider, as it is a big decision that can mean a lot of responsibility for the person overseeing your assets. Consider the fact that the law holds a trustee accountable to review assets and implement decisions concerning them within a reasonable time following the acceptance of the trusteeship. It is important to choose someone who is both willing and capable of making sound decisions regarding your property.

A professional DuPage County estate planning attorney can help ensure your trust planning arrangements run smoothly and efficiently. Call A. Traub & Associates at 630-426-0196 (Lombard), 847-749-4182 (Arlington Heights) or 312-528-3290 (Chicago) for a consultation today.

Source:

http://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=2117