Creating an estate plan is one of the best ways to preserve your interests and keep your loved ones’ well-being in mind. But it can involve far more than just writing a will or choosing a power of attorney. You want to account for your full estate and find ways to make inheriting your estate as easy and stress-free as possible for your loved ones. One of the best ways to do that is to establish a living trust with help from your Illinois estate planning attorney. Let’s take a look at some of the key benefits this estate planning tool offers.
Helps You Avoid Probate
Living trusts let your loved ones bypass the probate process—a process that can cost your loved ones thousands of dollars and take months to get through. It does this by appointing a trustee to oversee the distribution of your assets rather than relying on the state. The trustee will distribute your assets as you designate before you pass away and your loved ones will take immediate possession of those assets.
Gives You Better Privacy
Believe it or not, wills become a matter of public record when you pass away. This means all of your assets named in your will and their corresponding beneficiaries can be discovered by anyone who wants to look into your affairs. Living trusts, on the other hand, stay private. They will never become a matter of public record, keeping the details of the distribution of your estate between you, the trustee, and your beneficiaries. Depending on the size of your estate or the sensitivity of the assets you’re passing on, keeping your estate out of the public eye can eliminate stress and hassles for your loved ones.
Offers Tax Benefits
Depending on how you set the living trust up, you may be able to reduce or eliminate the amount of estate taxes, gift taxes, or income taxes your loved ones pay when they inherit your property. This can save them thousands of dollars and may help them keep more of their inheritance in the long run. Your Illinois estate planning attorney will help you figure out the best way to structure your living trust to take advantage of the tax benefits these tools offer.
Provides Flexibility and Control
Unlike irrevocable trusts, living trusts are not set in stone. You’re able to modify the trust as needed during your lifetime, giving you complete control over the assets held in the trust. This means you can add assets as you acquire them and remove assets as needed, provided you follow the proper legal steps. Don’t worry—your estate planning attorney will be able to help you if you need to move assets out of the trust down the line.
Protects Assets From Creditors
If your finances change as you age, and you find yourself in a tough financial spot when you pass away, your living trust will protect your assets from creditors and other legal challenges. This means assets held in the trust may not be used by creditors to settle your debts in many instances. Your Illinois estate planning attorney can help you better understand the protections living trusts provide based on your concerns.
Is a Living Trust the Right Fit for Your Estate?
Living trusts offer many benefits that other estate planning tools may not provide, but that doesn’t mean it’s the right tool for every situation. If you’re interested in establishing a living trust, speak with an Illinois estate planning attorney at Legacy and Life Law Firm. Contact us today to discuss your needs and to schedule a consultation.