DGAA bLAWg

What Is Included in an Illinois Living Trust?

Web Admin - Thursday, December 31, 2020

Kenilworth estate planning attorneyWhen someone passes away, there is a legal process for administering and managing his or her estate, which is often referred to as estate administration. Instead of creating a will that outlines how assets will be distributed after death, a person can put those directives in another document, called a living trust. A trust is a legal document that designates a person or corporation to act as a trustee to administer the trust property according to the trust instructions. The individual who drafts the trust is considered the “grantor” or “settlor.” Those who receive assets or income from the trust are known as “beneficiaries.” The individual who is assigned as the trustee has a responsibility to uphold and manage the trust property for the beneficiaries named in the trust document. If you or someone you know is considering establishing a trust, an experienced estate planning attorney can help you draft this important legal tool.  

The Difference Between a Will and a Trust

A will only takes effect upon a person’s death. A living trust becomes valid during the grantor’s lifetime and can be either revocable or irrevocable. A living trust designates a trustee and explains the steps for administering the trust during a person’s life in addition to after his or her death. It is important to note that the trust document simply sets up the trust, which remains empty until assets are placed into the trust.

An individual can be the sole beneficiary of his or her trust while he or she is living. Alternatively, he or she can name a spouse or children as other beneficiaries. In the event the grantor becomes incapacitated due to a serious illness or injury, the trust designates a successor trustee to manage the assets. Upon the grantor’s death, the living trust instructs the distribution of assets like it would in a will. These assets may include cash, life insurance policies, individual retirement accounts (IRAs), stock portfolios, real estate, and other business interests. By putting who gets what into writing can prevent arguments or disputes between family members who believe they are entitled to any assets. 

The Benefits of a Living Trust

The benefits of a living trust include avoiding going to court for probate and guardianship proceedings (in the event a minor is involved). A living trust can be especially useful when someone owns real estate property in more than one state. Generally, real estate is probated in the state where it is located. There are people who may own real estate in one or more states, which usually requires probate to be administered in the owner’s home state. However, probate must also be conducted in any other state in which a person has property. Since probate is not necessary for property that is held in a trust, homeowners can forgo this additional administration as long as the out-of-state real estate is included in the living trust.

Unlike a will, a living trust is private since it is not a public record. 

Contact a South Barrington Estate Planning Lawyer

Thinking about and planning ahead for your future is important to prevent disputes among family members upon your death or if you become incapacitated. Depending on your circumstances, you may want to create a living trust instead of a will. Drost, Gilbert, Andrew & Apicella, LLC, are well-versed in Illinois law pertaining to estates. Our accomplished Long Grove estate planning attorneys will help you draft and review these essential legal documents. Call our office today at 847-934-8000 to schedule a free consultation.


About the Author: Attorney Jay Andrew is a founding partner of Drost, Gilbert, Andrew & Apicella, LLC. He is a graduate of the University of Dayton School of Law and has been practicing in estate planning, probate, trust administration, real estate law, residential/ commercial leasing, contracts, and civil litigation. Since 2005, Jay has been a Chair of the Mock Trial Committee for the Annual Northwest Suburban Bar Association High School Mock Trial Invitation which serves over 240 local Illinois students each year.






Source:
https://www.ilga.gov/legislation/ilcs/ilcs5.asp?ActID=4001&ChapterID=61



.



How Is Exculpation of Trustees Addressed Under the New Illinois Trust Code?

Web Admin - Monday, December 30, 2019
Mount Prospect estate planning lawyer Illinois Trust CodeAs the new year begins, many trust owners (grantors) and trustees are familiarizing themselves with the Illinois Trust Code. As of January 1st, 2020, Illinois has adopted a new set of governing rules over trusts that will be linked to the Uniform Trust Code (UTC). This law involves many changes and updates to the rules surrounding trusts, and one area that has been affected is the modification of exculpation clauses. Moving forward, both grantors and trustees should consult a legal professional to either create, adjust, or better understand their trusts. 

What Does Exculpation of a Trustee Mean?


An exculpatory clause is a provision that can be added to a trust that would relieve a designated individual from responsibility for certain actions. Under the Illinois Trust Code, the exculpation of a trustee would relieve him or her of any liability for a breach of the trust. However, trust relieving will be unenforceable if it is determined that the exculpatory term:

- Absolves a trustee of liability that is committed with deceitful intentions or with carelessness to the purpose of the trust or the interests of the beneficiaries.
- Was inserted because of a trustee’s abuse of a legal or confidential relationship with the grantor. 

Unless the trustee can prove that the exculpatory term was justified under the current situation and that it was adequately communicated to the grantor, the term will be found invalid. For example, if a trustee purposefully acted in a way that was determined to be against the trust in an effort to benefit themselves, that trustee could be responsible for his or her actions.

What Is Changing?


Under previous Illinois law, a grantor of a trust was able to exonerate a trustee from personal liability by including an exculpatory clause into the trust. Although exculpatory clauses can still be used under the Illinois Trust Code, there is now a presumption that they will be found invalid if the trustee created or forced the clause to be added. In order to prove that an exculpatory clause is legitimate, a trust maker should be represented by a third-party counsel during the drafting of the trust.

Contact a Riverwoods Estate Planning Attorney


Due to the significant changes that have been implemented under the Illinois Trust Code, it is important for trust makers and trustees to understand the new policies. If you wish to add an exculpatory clause, or if there has been a breach in your trust, you should work with an attorney to determine your legal options. At Drost, Gilbert, Andrew & Apicella, LLC, our experienced Barrington trust lawyers can work with you to ensure your trust meets the requirements of Illinois law. For a free consultation, call our office today at 847-934-6000.

About the Author: Attorney Jay Andrew is a founding partner of Drost, Gilbert, Andrew & Apicella, LLC. He is a graduate of the University of Dayton School of Law and has been practicing in estate planning, probate, trust administration, real estate law, residential/ commercial leasing, contracts, and civil litigation. Since 2005, Jay has been a Chair of the Mock Trial Committee for the Annual Northwest Suburban Bar Association High School Mock Trial Invitation which serves over 240 local Illinois students each year.


Sources:
http://www.ilga.gov/legislation/ilcs/ilcs5.asp?ActID=4001&ChapterID=61

What Is a Nonjudicial Settlement Agreement in Relation to the ITC?

Web Admin - Thursday, November 07, 2019
Riverwoods estate planning lawyer trustsA trust can provide a person with the ability to protect and manage their assets and distribute them to beneficiaries either before or after their death. When a person creates a trust, they will name a trustee who will be responsible for controlling and managing the property or assets held in the trust. These appointed agents are legally required by the Illinois Trust Code (ITC) to fulfill the duties authorized to them, such as distributing possessions or managing an estate. If disputes arise between a trust’s beneficiaries, a trustee, or any other interested persons, the parties may enter into a nonjudicial settlement agreement to modify the terms of the trust. Before any actions or alterations are enacted, it is important to speak to an experienced trust attorney.  

What Can Be Resolved By a Nonjudicial Settlement Agreement 


Under the ITC, a nonjudicial settlement agreement can address the following subjects:
- The lawfulness and clarification of the terms attached to a trust.
- Approval of a designated agent’s actions.
- The powers which can or cannot be exercised by a trustee, as long as they do not conflict with the purpose of the trust.
- Concerns relating to property held by the trust if the settlement does not conflict with the purpose of the trust.
- The act of removing or appointing a trustee, advisor, or any other delegated representative of financial or nonfinancial powers. This may also include choosing a new successor trustee. 
- The financial compensation that can be provided to a trustee.
- The transfer of a trust’s principal place of administration.
- Accountability of a designated agent for his or her actions relating to the trust.
- The actions taken to resolve disputes related to the administration of the trust, the distribution of assets, or other relevant issues.
- A modification of the terms that relate to the administration of the trust. 
- If a trust is severed into two or more trusts, determination of whether the aggregate interests of each beneficiary are equivalent to their interests before severance.
- The termination of a trust, which can only occur if a court finds that the continuance of the trust is not necessary to achieve the trust’s purpose.

Contact a Long Grove Trusts Attorney


Before the ITC is enacted on January 1st, 2020, it is critical for trust settlors, trustees, and beneficiaries to discuss any possible changes that may need to take place. In order to make sure that your rights are protected, you should work with an experienced attorney who understands the laws regarding trusts in Illinois. At Drost, Gilbert, Andrew & Apicella, our Kenilworth estate planning lawyers can provide clarification in your specific situation. To schedule a free consultation, contact our office today at 847-934-6000.  

About the Author: Attorney Jay Andrew is a founding partner of Drost, Gilbert, Andrew & Apicella, LLC. He is a graduate of the University of Dayton School of Law and has been practicing in estate planning, probate, trust administration, real estate law, residential/ commercial leasing, contracts, and civil litigation. Since 2005, Jay has been a Chair of the Mock Trial Committee for the Annual Northwest Suburban Bar Association High School Mock Trial Invitation which serves over 240 local Illinois students each year.


Sources:

http://www.ilga.gov/legislation/ilcs/ilcs5.asp?ActID=4001&ChapterID=61

How Does the Illinois Trust Code Affect Trustees and Beneficiaries?

Web Admin - Wednesday, September 25, 2019
Long Grove estate planning lawyer Illinois Trust CodeMany people utilize trusts to protect and manage their assets and ensure that these assets are properly distributed to their beneficiaries either before or after their death. However, the laws regarding trusts are changing. Effective January 1st, 2020, the Illinois Trust Code (ITC) will be replacing the current Illinois Trusts and Trustees Act. The ITC is linked in certain ways to the Uniform Trust Code (UTC), which is an arrangement of laws designed to establish consistent trust laws between different states. Before the ITC is implemented, trust makers and trustees may need to review their current trusts and determine how the changes to the law may affect them. 

New Default and Mandatory Rules


When a person creates a trust, they place their assets in the control of a trustee, who will oversee the process of managing these assets and distributing them to the beneficiaries according to the terms defined in the trust. The ITC specifies a number of rules that must be followed regarding trusts. While a trust may provide a trustee and beneficiaries with certain rights, powers, duties, limitations, and immunities, the ITC states that:

- A trustee must act in good faith.
- The trust must be lawful and cannot violate public policy.
- A trust may nominate one or more people to serve as the designated representative of a qualified beneficiary, and this representative must act in good faith in the best interests of the beneficiary.
- A trust may not be enforced for more than 21 years.
- The court is granted the power to modify or terminate a trust.
- Spendthrift provisions can be authorized by the court.
- A person who is acting as an agent in a power of attorney must have express authorization in order to act on behalf of a trust settlor. 
- The court may adjust the compensation provided to a trustee if it is deemed to be too high or low.
- A trustee must notify each qualified beneficiary of the trust’s existence, the beneficiaries’ right to a copy of the trust, and whether the beneficiary can receive or request trust accountings. 
- A trustee must send an annual trust accounting to the current beneficiaries.
- A trustee must send a trust accounting to all of the beneficiaries upon the termination of a trust.
- If a trust contains terms waiving a trustee’s liability for breaching the terms of the trust, these terms may be unenforceable.

Contact a Schaumburg Estate Planning Lawyer


The ITC may have significant implications for currently-established trusts, as well as for trusts that are created in the future. Before the ITC is enacted, discussing your questions and concerns with an experienced Arlington Heights trusts attorney could help ensure that your rights as a trustee or beneficiary are protected. At Drost, Gilbert, Andrew & Apicella, LLC, we can help you address any legal issues related to trusts, or we can help you create a trust to protect your assets and distribute them to your beneficiaries. To further discuss your specific situation, contact our office today at 847-934-6000 for a free initial consultation.

About the Author: Attorney Jay Andrew is a founding partner of Drost, Gilbert, Andrew & Apicella, LLC. He is a graduate of the University of Dayton School of Law and has been practicing in estate planning, probate, trust administration, real estate law, residential/ commercial leasing, contracts, and civil litigation. Since 2005, Jay has been a Chair of the Mock Trial Committee for the Annual Northwest Suburban Bar Association High School Mock Trial Invitation which serves over 240 local Illinois students each year.


Sources:
http://www.ilga.gov/legislation/ilcs/ilcs5.asp?ActID=4001&ChapterID=61

5 Tips For Non-Traditional Families When Creating an Estate Plan

Web Admin - Friday, June 28, 2019
Barrington estate planning lawyer same sex couplesToday’s families come in many forms. In fact, there are fewer “traditional” families than ever in which two opposite-sex parents are married for the first time and have children together. Since divorce is common, and couples often choose to live together and have children without getting married, many families include step-parents and step-children. In addition, the legalization of same-sex marriage has resulted in complex family arrangements involving biological children and adoptive children. Regardless of how a family is configured, it is important to plan for the future and ensure that all family members’ needs will be met. For non-traditional families, it is important to consider the following during the estate planning process:

1. Update your will - Your last will and testament specifies how you want your assets to be distributed to your heirs after your death and any other last wishes. You will want to be sure that your will addresses your partner, your children, your step-children, and any other family members.

2. Create a trust - In addition to your will, a trust can provide more control and flexibility for how you would like your assets to be distributed to your beneficiaries. A living trust can be changed or modified if necessary, and it can also be used to provide for your and your partner’s needs during your life.

3. Use power of attorney - While married spouses have the right to make decisions for each other, this is not always true for unmarried couples. A power of attorney agreement can be used to ensure that partners will be able to make medical or financial decisions for each other if one of them becomes incapacitated.

4. Consider a prenuptial or postnuptial agreement - When you get remarried, your new spouse will typically be entitled to receive half of your estate following your death. A prenup or postnup can ensure that certain assets will be set aside for any children you may have from a previous marriage or relationship.

5. Address plans for retirement - If you have any retirement funds saved in an account such as a 401(k) or IRA, you will want to be sure to name beneficiaries who will receive these funds following your death. You can name your spouse or partner as a beneficiary, as well as any children or step-children.

Contact a Kenilworth Estate Planning Attorney


When creating a comprehensive estate plan, you will want to be sure all of your family members will be provided for. Determining how to do so when you are in a non-traditional family can be a complex matter, and an experienced attorney can help you address issues involving same-sex partners, children from previous marriages, adoptive children, or other family members. Contact our Riverwoods estate planning lawyer today at 847-934-6000 to schedule a free consultation.

About the Author: Attorney Jay Andrew is a founding partner of Drost, Gilbert, Andrew & Apicella, LLC. He is a graduate of the University of Dayton School of Law and has been practicing in estate planning, probate, trust administration, real estate law, residential/ commercial leasing, contracts, and civil litigation. Since 2005, Jay has been a Chair of the Mock Trial Committee for the Annual Northwest Suburban Bar Association High School Mock Trial Invitation which serves over 240 local Illinois students each year.


Sources:
https://digitalcommons.law.seattleu.edu/cgi/viewcontent.cgi?article=1773&context=sulr

3 Reasons Why a Living Trust Is More Beneficial Than Just a Will

Web Admin - Wednesday, January 23, 2019
Des Plaines living trust lawyerIf you wish to leave a legacy to your children or other beneficiaries after your death, it is imperative that you have an estate plan that will ensure prompt and accurate distribution of your assets. Many people think that writing a will is the best way to do this. However, while a will is important, putting your assets into a revocable living trust can provide several additional benefits.

Avoid the Illinois Probate Process 


In order to distribute assets according to the terms of a will, the will must go through the probate process. This involves filing various court documents required by law to establish the value of each asset and to re-title each asset from the deceased’s name to the recipient’s name. This can be a long, drawn-out process.

Secure Adult Heirs’ Immediate Access to the Estate


One of probate’s most serious drawbacks is the freezing of assets. Specifically, any assets that are held solely in the name of the deceased are frozen upon their death. Imagine a married couple who amassed several large investment and retirement accounts and multiple pieces of real estate during their lifetime. Upon the death of both spouses, their children cannot touch any of the assets until a probate court judge approves the will and appoints a Personal Representative to handle the estate. Leaving large investment accounts without active management can be risky.

By comparison, imagine that all of the couple’s assets had been placed in a living trust, meaning that the assets are titled in the name of the trust rather than in the name of any individual. Upon the death of the trust-maker, their designated successor has immediate access to the assets of the trust.

Secure Assets for the Long-Term Benefit of the Family


Imagine our married couple has three children and has a will. Upon the death of both spouses and probate action, the assets of the estate must be divided amongst the named heirs. Assuming the estate is to be divided equally among the three children, the inherited assets are now at risk to creditors, bankruptcy, a lawsuit, or a divorce. 

Creditors. If the married couple had all of their assets in a trust, ownership of those assets can remain titled in the name of the trust indefinitely. Because the assets are not titled in the individual children’s names, the assets are protected from creditors, even if one child files for bankruptcy or gets divorced. The beneficiaries named in the trust will have access to the assets in accordance with the directions specified in the trust documents. 

Heirs with disabilities. Upon the death of the spouses, one child (or an objective third party such as a bank) could be named as the successor trustee with directions to manage the trust in a certain way. This approach can be used to ensure that the use of the assets is prioritized in some way, such as to meet the basic needs of a child or grandchild with a disability. Keeping the assets in the trust can also serve to protect the right of a disabled heir to receive needs-based government benefits.

Underage heirs. Keeping the trust open with a successor trustee can also be beneficial for heirs who have not yet reached adulthood. When a will leaves assets to a minor, the probate court must appoint a conservator to manage the minor’s assets. Once our fictional married couple has died, there is no telling who that conservator might be and what decisions they might make. In contrast, assets left in a trust can be managed according to specific directions written into the trust. Thus, the maker of the trust can dictate when and for what purposes a youthful (or even as-yet unborn) heir can access their inheritance.

Consult a Palatine Revocable Living Trust Lawyer


A well-thought-out living trust can give you greater peace of mind and benefit your heirs in the long run. To discuss options for writing or updating a living trust, call an experienced Schaumburg living trust attorney at Drost, Gilbert, Andrew & Apicella, LLC. We have prepared living trusts for many high-asset families with complex issues of inheritance. To set up a free initial consultation, call 847-934-6000.

About the Author: Attorney Jay Andrew is a founding partner of Drost, Gilbert, Andrew & Apicella, LLC. He is a graduate of the University of Dayton School of Law and has been practicing in estate planning, probate, trust administration, real estate law, residential/ commercial leasing, contracts, and civil litigation. Since 2005, Jay has been a Chair of the Mock Trial Committee for the Annual Northwest Suburban Bar Association High School Mock Trial Invitation which serves over 240 local Illinois students each year.


Sources:
https://www.isba.org/public/guide/livingtrust

Two Important Benefits Provided By a Living Trust

Web Admin - Tuesday, August 07, 2018
Arlington Heights trust lawyerThe thought of planning for what should happen after one’s death is often too morbid for many people to want to consider. However, doing so is incredibly important, since you want to be sure that your wishes will be followed correctly and that your heirs will be able to receive the assets you plan to pass on to them with minimal complications. While you may think that the estate planning process begins and ends with the creation of a last will and testament, another tool that can be very powerful is a living trust. 

Trusts allow you to protect certain assets, placing them in the control of a trustee and passing them to your beneficiaries once certain requirements are met. With a living trust, you can serve as the trustee while you are still living and mentally competent, giving you control over your assets and allowing you to revoke or change the terms of the trust to meet your and your family’s needs. There are a number of benefits to using a living trust, but two of the primary advantages are:

1. Avoiding Probate

When a person dies, the executor of their estate will enter their will into probate court, which is a process that can be lengthy and expensive as the court reviews the will and approves the paying of debts and taxes and the passing of assets to beneficiaries. The will is entered into public court records, meaning that the family’s personal business is available to be viewed by anyone who wants to examine the court documents. 

A trust, on the other hand, does not have to go through the probate process. This will allow assets to be passed to beneficiaries much more quickly and with fewer complications, and it will also ensure that the details about the estate are kept private.

2. Planning for Illness or Incapacitation

In many cases, when a person becomes ill or incapacitated or is no longer able to manage their own affairs, a friend or family member is named as their legal guardian. Guardianship will often not only give a guardian control of a person’s health and personal care, but also their financial affairs. This type of situation is not ideal, but a living trust can help you avoid losing control of your finances by addressing how things should be handled if you are incapacitated. 

Your trust can specify what conditions should exist for you to be declared incapacitated or mentally incompetent, and it can name a successor trustee who will manage the trust in this situation. The trustee can ensure that you have the financial resources you need to provide for your own care, while preserving your assets to pass on to your beneficiaries after your death.

Contact a Palatine Estate Planning Attorney

If you want to know more about how to use a living trust to protect your assets and pass them to your heirs, the attorneys of Drost, Gilbert, Andrew & Apicella, LLC can answer your questions and work with you to create a comprehensive estate plan. Contact a Schaumburg living trust lawyer today at 847-934-6000 to schedule a personalized consultation.

About the Author: Attorney Jay Andrew is a founding partner of Drost, Gilbert, Andrew & Apicella, LLC. He is a graduate of the University of Dayton School of Law and has been practicing in estate planning, probate, trust administration, real estate law, residential/ commercial leasing, contracts, and civil litigation. Since 2005, Jay has been a Chair of the Mock Trial Committee for the Annual Northwest Suburban Bar Association High School Mock Trial Invitation which serves over 240 local Illinois students each year.



Sources:
https://www.thebalance.com/the-benefits-of-a-revocable-living-trust-vs-a-will-3505405
https://www.thebalance.com/pros-and-cons-of-revocable-living-trusts-3505384

Why You Need an Estate Plan Even If You Do Not Have Children

Web Admin - Thursday, January 11, 2018
Palatine estate planning lawyerFinancial advisors and attorneys often tell their clients that estate planning is an essential part of anyone’s financial plan, ensuring that their assets are correctly distributed to their heirs after their death. But how does this apply to people who do not have any children? If you are not concerned with providing for your descendants after you are gone, you may not feel that an estate plan is necessary. However, it is still important to have a plan in place that will protect your assets both before and after your death.

Creating a Will

When someone dies intestate (without a last will and testament in place), their assets will be distributed according to Illinois’ intestate succession laws. If someone has no descendants, their entire estate will go to their spouse. If they do not have a spouse, the estate will be divided among their parents and siblings, or among their closest surviving relatives. If no relatives can be located, the estate will go to the State of Illinois.

Even if you do not have children, you will likely want to have some say in who will inherit your property after you die. Creating a valid last will and testament will ensure that your assets are distributed according to your wishes, whether you plan to leave them to your spouse, family members, friends, or charitable organizations.

Another benefit of a will is that it names an executor who will handle the distribution of your property to your heirs. Without a will in place, a probate court will appoint an administrator of your estate, and extensive court proceedings may be necessary to resolve any disputes over the distribution of your assets. Creating a will that clarifies your intentions and names a person you trust to oversee your estate will ensure that your wishes are carried out correctly.

Holding Assets in a Living Trust

Another benefit that estate planning can provide is ensuring that you will have the financial resources you need as you near the end of your life. A living trust is a good way to protect your assets, giving you control over them while also specifying who will handle them and how they should be used to care for you if you should ever become incapacitated or disabled, as well as how they should be distributed after your death.

One of the key benefits of a trust is that it simplifies the distribution of property after your death, since assets held in a trust are not subject to probate. In addition, while the contents of a will are part of the public record, a trust is confidential, providing privacy to both you and your heirs.

Contact a Rolling Meadows Estate Planning Attorney

If you want to know more about the benefits that estate planning can provide to you and your loved ones, the attorneys at Drost, Gilbert, Andrew & Apicella, LLC can help you understand the benefits of a will or trust and work with you to draft the documents that give you and your family the financial security you need. Contact our Palatine estate planning lawyers today at 847-934-6000 to schedule a personalized consultation.


About the Author: Attorney Jay Andrew is a founding partner of Drost, Gilbert, Andrew & Apicella, LLC. He is a graduate of the University of Dayton School of Law and has been practicing in estate planning, probate, trust administration, real estate law, residential/ commercial leasing, contracts, and civil litigation. Since 2005, Jay has been a Chair of the Mock Trial Committee for the Annual Northwest Suburban Bar Association High School Mock Trial Invitation which serves over 240 local Illinois students each year.



Sources:
http://www.ilga.gov/legislation/ilcs/ilcs4.asp?ActID=2104&ChapterID=60&SeqStart=3700000&SeqEnd=5000000
https://www.aarp.org/money/estate-planning/info-09-2010/ten_things_you_should_know_about_living_trusts.html

Why Do I Need a Living Trust? Won't My Simple Will Work Just the Same?

Web Admin - Friday, May 20, 2016

Why I Need a Living Trust, Illinois Estate Planning Attorneys When people begin the process of estate planning, they often have several questions about what course of action would be in their best interest, or in the best interests of their surviving family members and loved ones. One frequently asked question asks what the difference is between a simple will and a living trust. 

Is one option a better choice than the other? 

The answer really depends on your particular situation. However, for most typical family situations, a good choice is to use a living trust to transfer your property upon your death. 

When you prepare a will as your sole means of transferring your property upon your death, your will must go through the probate court, which can be complicated and your surviving family members could end up fighting over your will once you are gone. However, using a revocable living trust, which you can prepare while you are still alive, can help your family avoid probate after you pass on. Individuals who are looking to exercise more control over their property may find that a living trust is a useful estate planning tool. One of the estate planning attorneys at our firm can help you prepare a declaration of trust at your convenience.

Five Advantages to Using a Living Trust Over a Will

Below are examples of the advantages of using a living trust over a will. 

1. Property transferred through a living trust will not go through probate. Probate is a long, tedious, and costly process before the probate court where the validity of the will is demonstrated, all debts held by the decedent are paid off, and then the remaining property is distributed to the family members. The more complicated the decedent’s estate is upon his or her death, the more complicated and drawn out probate can be. 

2. Out-of-state property transferred through a living trust can avoid ancillary probate. When property is located out of state, instead of having to go through probate in each state, a living trust can allow for the property of out-of-state property without ancillary, or out-of-state probate. 

3. Getting the opportunity to manage your property during your lifetime. By being the settlor of your own living trust, you retain control over the trust until you decide that you want to hand over the reigns or you die. 

4. Living trusts remain confidential, wills are not. Since probate is a legal proceeding, if your will goes through probate, your will becomes part of the probate court records, which are made available for public inspection.  

5. The successor trustee is able to take over once the principal is disabled which is a huge advantage. The “seamless” transition of control over the trust and the trust corpus upon the disability of the grantor is a huge advantage of the trust over the will.

Getting Legal Help with Living Trusts

If you think that a living trust might be the best estate planning tool for you, please feel free to contact one of our experienced Illinois estate planning attorneys today. Our law firm serves the communities of Crystal Lake, Palatine, Des Plaines, Mount Prospect, Long Grove, Kenilworth, Riverwoods, Buffalo Grove, Barrington, and Arlington Heights. Call 847-934-6000 to speak to a member of our team.

About the Author: Attorney Jay Andrew is a founding partner of Drost, Gilbert, Andrew & Apicella, LLC. He is a graduate of the University of Dayton School of Law and has been practicing in estate planning, probate, trust administration, real estate law, residential/ commercial leasing, contracts, and civil litigation. Since 2005, Jay has been a Chair of the Mock Trial Committee for the Annual Northwest Suburban Bar Association High School Mock Trial Invitation which serves over 240 local Illinois students each year.

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

Importance of Funding Your Living Trust

Web Admin - Friday, September 25, 2015

funding your living trust, Illinois estate planning attorney

The creation of living trusts in order to transfer property to beneficiaries is becoming increasingly popular. One of the major benefits of using a living trust is the avoidance of probate. However, if the maker of the trust (called the grantor) does not actually fund the trust with property or other assets, the grantor’s estate will likely have to go through probate. 

Living Trusts 

A revocable living trust is a form of estate planning that allows a grantor to determine who gets his or her property upon their death. A trust that is revocable can be altered, changed, or revoked during the life of the grantor. Upon the grantor’s death, the trust becomes irrevocable. After the trust becomes irrevocable, it cannot be changed and the trustee must follow the distribution plan made by the grantor. Alternatively, an irrevocable living trust is one that cannot be revoked once it is finalized. Both of these forms of trusts are called “living” trusts because they are formed during the life of the grantor. 

Living trusts provide the benefit of the avoidance of probate, which is a court process in which a determination is made as to how property is distributed upon the death of an individual. Probate, which is governed under Illinois law by the Probate Act of 1975, is often expensive and time-consuming. Additionally, it often means that property is not divided in accordance with how the deceased individual would have desired. 

In order to avoid probate, the grantor must correctly form the trust and fund the trust. A trust is formed through the creation of a written trust document that is signed by the creator of the trust and a notary public. The trust document must include a list of the property that is covered by the trust, name a trustee, and name the beneficiaries of the property included in the trust. 

The grantor must transfer the property that is to be covered by the trust into the trust. For most property, a trust is funded simply by including a list of covered property in the trust document. However, real estate must be retitled in the name of the trust in order to be correctly transferred. A trust that has not had assets properly transferred to it is called an unfunded living trust. 

Unfortunately, it is not uncommon for grantors to fail to fund their trust. This may occur when a grantor plans to get around to it in the future but never actually does it. Alternatively, a grantor may incorrectly believe that the creation of the trust document was sufficient. For example, in the case of real estate, the creation of the trust document is not enough due to the retitling rule. If a trust is not properly funded, the goals of the estate plan will not be achieved and the estate will have to go through probate. 

Help with Estate Planning 

Planning for what will happen to your property and assets is important for you and your loved ones. If you would like more information or help in forming a living trust, contact an experienced Illinois estate planning attorney today. Our firm proudly serves the communities of Inverness, Palatine, Schaumburg, Arlington Heights, Long Grove, Kenilworth, Riverwoods, Barrington, South Barrington, and Mount Prospect.

About the Author:

Attorney Jay Andrew is a founding partner of Drost, Gilbert, Andrew & Apicella, LLC. He is a graduate of the University of Dayton School of Law and has been practicing in estate planning, probate, trust administration, real estate law, residential/ commercial leasing, contracts, and civil litigation. Since 2005, Jay has been a Chair of the Mock Trial Committee for the Annual Northwest Suburban Bar Association High School Mock Trial Invitation which serves over 240 local Illinois students each year.


Source:

http://www.ilga.gov/legislation/ilcs/ilcs5.asp?ActID=2104&ChapterID=60



Recent Posts


Tags

clemency Arlington Heights wills and trusts attorney Des Plaines civil attorney Attorney Ken Apicella Palatine law firm Des Plaines personal injury lawyers Illinois traffic attorneys sole proprietorship Inverness personal injury attorney operating agreements Illinois employee rights attorney. Chicago will attorney Palatine construction attorney how to avoid common denials of life insurance claims license reinstatement Crystal Lake criminal defense attorney traffic tickets whistleblower protections top life insurance claim denials life insurance claims IRA trust transfer dynasty trusts Schaumburg Attorney mortgage privacy laws fault based insurance Chicago corporate attorney income distribution deducation digital assets Retaliatory Discharge traffic crimes Buffalo Grove injury lawyer Illinois personal injury attorney blood alcohol content overtime pay Barrington injury attorney DUI defense Illinois boating accident lawyer Palatine injury attorney liens business litigation condo Crystal Lake car accident attorney Illinois insurance claims lawyers Arlington Heights tax lawyer Rolling Meadows Traffic Lawyer estate attorney in terrorem provision sexual harassment surgical mistakes Des Plaines personal injury attorney Mount Prospect wills and trusts lawyers involuntary manslaughter Family Medical Leave Act drugs Mount Prospect elder law attorney denied insurance claim Palatine employment law lawyer Schaumburg corporate attorney employment law, meal breaks, rest breaks, hotel employees, Des Plaines employment law attorneys Palatine traffic accidents construction accidents, personal injury, wrongful death, Arlington Heights personal injury attorneys, workers' compensation BUI lapse in policy Illinois employment law attorneys Arlington Heights car crash attorneys LLCs Schaumburg estate attorney commercial leasing Des Plaines medical malpractice attorney Schaumburg traffic lawyer liability Crystal Lake injury attorney Kenilworth estate planning attorneys landlord Schaumburg employment attorney Illinois employment law attorney Illinois personal injury Rolling Meadows marijuana attorney anesthesia errors boating under the influence healthcare real estate contract Illinois rollover accident lawyers insurance dispute, insurance dispute lawyers, insurance claim denial, insurance claim delays, Rolling Meadows insurance dispute attorneys condo association denied insurance claims comp time breach of contract drug crime Illinois medical malpractice lawyers fatal car accidents IRS license Schaumburg medical malpractice lawyer material misrepresentation Crystal Lake traffic attorney Palatine Attorney insurance agent negligence unauthorized overtime medical malpractice living wills drunk driving statistics insurance adjusters Barrington Traffic Lawyer employment contract probate fees estate planning attorney unpaid overtime Class A misdemeanor pizza emoji Buffalo Grove life insurance attorney Deer Park DUI lawyer Illinois bicycle safety dealing with problem employees workers compensation Schaumburg construction accident lawyer Illinois Transfer on Death Instrument Crystal Lake business law attorneys Palatine corporate attorney Illinois pedestrian accident attorney Illinois real estate lawyer Rolling Meadows Attorney Schaumburg personal injury lawyer Illinois DUI attorney denial of life insurance Buffalo Grove personal injury attorney loss of consortium real estate closing insurance claim denial motorcycle accident Inverness real estate attorney changes to mortgage law comparative negligence Inverness corporate attorney Barrington employment attorney digital information texting while driving food poisoning Illinois real estate Illinois employment laws Inverness injury lawyer Palatine elder law attorney Des Plaines collections attorney Illinois medical malpractice claim motorcycle accident lawyer traffic violations Crystal Lake civil litigation lawyer civil rights violation car accident lawyer Illinois insurance lawyer Rolling Meadows personal injury attorney Illinois speeding lawyer personal injury, auto accident injuries, delayed injuries, serious injuries, Des Plaines personal injury attorneys landlord tenant law head on collisions Illinois pet lawyer Barrington business law firm Arlington Heights real estate lawyer Arlington Heights employment law attorneys Schaumburg drug defense lawyer car crash Barrington litigation attorney Chicago trucking accident attorney investment property Palatine workers compensation lawyer Do Not Resuscitate Deer Park workers compensation lawyer Barrington criminal lawyer meal breaks real estate lawyer auto accidents insurance claim dispute attorney accidental death benefits Rolling Meadows criminal lawyer Illinois car accident attorney cell phone tower data insurance attorney employment law Palatine life insurance lawyer Inverness accident lawyer Illinois insurance claim dispute lawyer probate process traffic deaths Kenilworth estate planning attorney Illinois insurance claim attorney Schaumburg life insurance attorney Des Plaines DUI attorney marijuana crimes attorney Illinois employment attorneys Illinois Workers’ Compensation Commission Rolling Meadows traffic law firm expungement Illinois employment law firm Illinois probate lawyer right to work Arlington Heights wills and trusts lawyers Liquor Control Act Illinois insurance disputes foreclosed rental property Rolling Meadows life insurance claim denial attorney most common reasons for life insurance claim denials pedestrian injuries, pedestrian fatality Colin Gilbert fiduciary rule delay llinois Real Estate Lawyers Association Rolling Meadows traffic attorney Rolling Meadows criminal attorney attorney fees Des Plaines personal injury lawyer Chicago estate planning Palatine traffic lawyer Rolling Meadows personal injury lawyers Crystal Lake estate planning lawyer denial of insurance claim wills criminal record Riverwoods estate planning lawyer Rolling Meadows probate lawyer installment contracts Illinois civil litigation lawyer coronavirus Illinois attorney Palatine estate planning lawyer Arlington Heights TBI attorney Crystal Lake pedestrian accident lawyer estate tax Chicago car accident lawyer caregiver mass shooting insurance denial appeals Crystal Lake accident attorney Inverness probate lawyer personal injury attorney Illinois workers compensation lawyer Deer Park traffic lawyer Palatine trusts lawyer living trust vs will Barrington estate planning attorney Illinois traffic ticket lawyer insurance negligence Buffalo Grove medical malpractice lawyers Crystal Lake car accident lawyer trusts Arlington Heights medical malpractice lawyer Detainer Actions Buffalo Grove traffic lawyers Barrington workers compensation attorney Landlord Tenant Ordinance Chicago traffic lawyer Illinois red light cameras Illinois estate planning law firm South Barrington real estate attorney Arlington Heights wills and trusts lawyer fiduciary rule premises liability distracted driving accidents Deer Park real estate law firm digital media accounts, estate planning, Arlington Heights estate planning attorney, traumatic brain injury DUI attorney Palatine employment attorney probate lawyer employees Des Plaines motorcycle accident attorney criminal law taxes Des Plaines accident attorney traffic offenses bicycle accidents Des Plaines injury law firm license suspension personal injury accidents Schaumburg elder law lawyer Illinois controlled substance Schaumburg probate attorney DGAA Arlington Heights trucking lawyer Arlington Heights insurance attorney natural gas insurance claim delay commercial leases civil litigation swimming pools jet ski insurance claim denials Illinois jet ski accident lawyer appealing an insurance claim probate claims process trench injuries Illinois tax attorney medical marijuana car collision problem employees Rolling Meadows Buffalo Grove criminal defense lawyer Rolling Meadows tax attorney Schaumburg criminal law attorney Illinois living will Illinois workplace lawyer life insurance lawyer Arlington Heights traffic attorney personal injury claim IRELA startup company gift tax exemption, estate planning, estate planning strategies, Illinois estate planning, South Barrington estate planning attorneys cell phone Palatine real estate lawyer gift taxes corporate law trucking accident lawyers Legal Info pet law Illinois defective products attorney bad faith insurance claims Barrington Illinois estate planning lawyer traffic accidents Barrington boating accident attorney agent Employment Discrimination Law Illinois LLC creation work unions dog bites life insurance policy Chicago attorney icy parking lots Arlington Heights Traffic Lawyer Schaumburg personal injury attorney wrongful death trauma after an accident hiring employees jet ski accidents Rolling Meadows estate planning attorney CAM Deer Park accident attorney DNR Illinois Wage Payment and Collection Act rollover accidents hit and run accident Buffalo Grove personal injury lawyer drunk driving modern family estate planning Inverness estate planning lawyer Barrington personal injury attorney Rolling Meadows insurance dispute lawyers nursing home negligence IRA benefits Barrington criminal defense lawyer defective products lawyer real estate zoning estate planning for college students caretaker rights wrongful termination Rolling Meadows accident lawyer Illinois criminal defense attorney hands free device Schaumburg estate planning lawyer unfunded trust Arlington Heights pedestrian accidents boating accidents contracts medical malpractice compensation back injuries Illinois employment law Des Plaines Traffic Lawyer federal regulations for LLCs college kids slip and fall accidents healthcare claims power of attorney for healthcare financial advisors Palatine insurance lawyer Buffalo Grove law firm workplace sexual harassment Illinois wrongful termination lawyer Inverness real estate lawyer pedestrian accidents Illinois medical malpractice attorney construction accidents insurance denials insurance claims Schaumburg injury lawyer Illinois medical malpractice case slip and fall capital gains tax social media after death Arlington Heights personal injury attorney ObamaCare Palatine probate lawyer creditors Self-Directed IRA Accounts Rolling Meadows employment law attorneys brain injury dram shop law holiday statistics Jay Andrew Chicago employment lawyer forming a corporation in Illinois Buffalo Grove real estate attorney Arlington Heights personal injury lawyer severance agreements Barrington estate planning lawyer rent to own real estate contracts Illinois traffic laws Long Grove real estate lawyer sexual images Colin H. Gilbert Illinois construction accident attorney Schaumburg personal injury lawyers Arlington Heights employment attorney Schaumburg estate planning attorney living trust medication errors Rolling Meadows business lawyer Chicago life insurance attorney Rolling Meadows drug defense attorney Inverness elder law lawyer Inverness civil lawyer Palatine civil litigation lawyer Federal Food Drug and Cosmetic Act Schaumburg wrongful death attorney real estate employee discrimination Crystal Lake traffic lawyer spinal cord injuries estate planning trusts Deer Park medical malpractice attorney Illinois employment lawyer Illinois collections attorney internet Illinois traffic attorney Long Grove estate planning Des Plaines tax law firm Deer Park motorcycle accident lawyer field sobriety test Barrington employment law attorney ken apicella Crystal lake insurance dispute attorney Arlington Heights lawyer Buffalo Grove corporate attorney TBI Fourth of July personal injury lawyer Rolling Meadows medical malpractice lawyers overtime violations Illinois job attorney drug possession low-ball insurance settlement car crash injuries Palatine drug lawyer Illinois Trust Code Illinois small business Des Plaines pet law attorney Crystal Lake tax lawyer POA Mount Prospect real estate lawyer Exclusions Rolling Meadows real estate attorney insurance dispute Crystal Lake pet attorney elder abuse Palatine punch death Inverness insurance attorney Rolling Meadows insurance attorney ACA eluding a police officer School Visitation Rights Act health insurance dispute Illinois will lawyer BAC insurance disputes, Illinois insurance disputes, Illinois insurance dispute attorneys, denied insurance claims, Arlington Heights insurance dispute attorneys wills and trusts Des Plaines drug crimes lawyer Illinois traffic accident lawyer insurance agents Crystal Lake medical malpractice lawyer drug crimes guardianship attorney Chicago estate planning lawyer FSLA Chicago insurance claim attorneys pain and suffering Illinois elder law attorney Deer Park traffic accident attorney truck collisions vacation home fines medical malpractice, missed diagnosis, delayed diagnosis, medical mistake, Deer Creek medical malpractice lawyers traffic laws Rolling Meadows boating crash lawyer South Barrington real estate lawyer consent to a search Illinois trusts attorney civil litigation attorney Schaumburg car accident attorney texting and driving Fair Labor Standards Act employee rights paid sick leave golf accidents pay when paid contract distracted driving accident victims Illinois Sales Representative Act rumble strips Buffalo Grove traffic attorney Mt Prospect Attorney Rolling Meadows car accident lawyers digital evidence Inverness traffic law firm special needs trust Arlington Heights criminal lawyer product liability Barrington real estate lawyer Buffalo Grove car accident lawyer real estate leasing murder employment law, Illinois employment laws Crystal Lake law firm Rolling Meadows employment attorney Home Sale Contingencies Palatine personal injury lawyer Arlington Heights car accident lawyer irrevocable trust personal injury law firm Barrington personal injury lawyer Illinois Probate Act of 1975 Illinois workers compensation attorney rollover car crashes Illinois business law atorneys real estate attorney Deer Park criminal attorney reckless homicide Arlington Heights accident attorney Schaumburg civil litigation attorney murder defense boating DUI Illinois lawyer Arlington Heights estate planning attorney advance healthcare directive personal injury Arlington Heights injury attorney owner responsibility Chicago lawyer underage DUI foreclosure Chicago biking tips construction contracts Forcible Entry Affordable Care Act new real estate form Crystal Lake employment law attorney Inverness DUI lawyer probate insurance disputes Palatine corporate law attorneys murder charges insurance dispute attorney criminal defense Illinois estate planning attorney Palatine business attorney digital assets, digital fiduciary, estate planning, digital content, Long Grove estate planning lawyers trucking accidents Long Grove estate planning attorneys Crystal Lake medical malpractice attorneys life insurance claim denial, denial of life insurance claim Illinois mortgages Barrington attorney pedestrian-automobile accident underinsured motorist no contest clauses Illinois workplace discrimination attorney Rolling Meadows personal injury lawyer Barrington drug crime attorney Barrington medical malpractice lawyers breathalyzer test wrongful termination, employment law, whistleblower protections, Illinois employment laws, discrimination in the workplace Barrington life insurance lawyer privacy preventing accidents Whistleblower Claims Illinois law Rolling Meadows litigation lawyer cause-of-death exclusions GM ignition switches wage theft vacation home Super Mario residential real estate Des Plaines criminal attorney defective products institutional trustee Palatine employment lawyer bicycle dooring accidents Illinois Smoke Detector Act Crystal Lake personal injury lawyer cell phone accidents estate planning, digital assets, Revised Uniform Fiduciary Access to Digital Assets Act, Illinois digital assets, Illinois estate planning, probate claims Illinois motorcycle accident lawyer job lawyers automated cars Schaumburg criminal attorney Barrington employment law firm Illinois corporate lawyer criminal Rolling Meadows corporate lawyer independent contractor Chicago will attorney, social media platforms, Illinois estate planning lawyer, insurance claim dispute tax attorney car accidents Des Plaines drug lawyer Schaumburg Illinois insurance attorney Deer Park employment law attorney Chicago insurance law firm Illinois Human Rights Act power of attorney BAIID unpaid assessment personal injury claims trustee Crystal Lake personal injury attorney pet bites DUI liability claims Illinois business lawyer speeding pedestrian accident Des Plaines claims law firm Joliet general practice lawyers pregnant women employment lawyer traumatic brain injuries car accident Illinois estate planning subcontractor disability benefits blended families Deer Park personal injury lawyer Arlington Heights wills and trusts attorneys insufficient documentation Long Grove estate planning attorney Crystal Lake insurance lawyer Kenilworth estate planning lawyer FMLA home inspection lawyer Des Plaines real estate lawyer loopholes insurance claim car crashes Rolling Meadows employment law attorney Illinois personal injury lawyer Crystal Lake bike accident lawyer Illinois home inspection Crystal Lake employment lawyer filing a medical malpractice claim products liability Des Plaines insurance attorney child safety minimum wage deadly crashes estate planning lawyer first degree murder Chicago employment attorney Crystal Lake medical malpractice law firm uninsured motorist bike accident Arlington Heights Attorney Barrington civil litigation attorney DMV living trust benefits Illinois injury lawyer Rolling Meadows insurance dispute lawyers, insurance dispute employment contract, employment law, employment at-will, Deer Park employment law attorneys, contract, real estate attorneys medical malpractice claims natural gas explosion Schaumburg employment law attorneys PTSD suspended license estate plan Food and Drug Administration's Food Safety Modernization Act Palatine civil attorney crossover accidents manufacturing life insurance workers compensation benefits Illinois insurance claim dispute lawyers compensatory time employment attorney preventable medical errors DUI penalities Long Grove real estate attorney Illinois driving without license Policy Cancellation Buffalo Grove employment lawyer Schaumburg insurance lawyers Thanksgiving elder law drug crimes lawyer employee misclassification license revocation driving federal crimes Des Plaines real estate attorney revenge porn Buffalo Grove probate lawyer underfunded trust commercial real estate deed transfer Illinois wills and trusts attorneys estate planning, death tax, succession plans, business estate plans, Barrington estate planning lawyers Crystal Lake employment attorney rest breaks estate planning Illinois registered agent Illinois personal injury lawyers Illinois wills and trusts Crystal Lake will lawyer homestead rights car accident lawyers Palatine criminal defense lawyer Rolling Meadows DUI lawyer Illinois insurance dispute lawyers Long Grove wills and trusts attorneys small business Illinois trucking safety Des Plaines Rolling Meadows insurance lawyer marijuana Home Remodeling Repair Act spinal cord injury Buffalo Grove insurance claim dispute lawyers workers comp senior citizens traffic violations defense trust payments Schaumburg real estate lawyer Transfer on Death Instrument beneficiary complications medical research

Archive