DGAA bLAWg

What Is the "Prudent Investor Rule" in the Illinois Trust Code?

Web Admin - Thursday, January 23, 2020
Inverness estate planning attorney Illinois Trust CodeThe Illinois Trust Code (ITC) went into effect on January 1, 2020, replacing the former Illinois Trusts and Trustees Act and implementing a number of changes that affect trust makers, trustees, and beneficiaries. One notable adjustment is known as the “prudent investor rule,” and it affects a trustee’s ability to make investment decisions regarding the assets in a trust. Before any investment actions are taken by a trustee, it is important to review and understand the rights and responsibilities defined in the ITC.

Understanding the Prudent Investor Rule


Trustees are responsible for investing and managing the assets of a trust, and they have the duty to act prudently when making investments. This includes considering the purpose and terms of the trust, the distribution requirements, and other relevant information. Under the ITC, a trustee may also consider the environmental and social impact of investment decisions, as well as the governance policies of entities where assets are invested. Before making an investment, a trustee should consider:

- The economic conditions that may affect the investment
- The possibility of inflation or deflation
- The anticipated tax costs and consequences of the investment
- How a specific investment can affect the overall portfolio
- The anticipated total return
- The duty to sustain only feasible and suitable costs
- The need for liquidity, regular income, and preservation of capital

The ITC does allow a trustee to examine whether a trust asset has a relationship to the purpose of the trust, or to one or more of the beneficiaries, in order to help determine what to do with the asset. For example, if a trustee believes that real estate property held in a trust is of no value to the trust itself or the beneficiaries, he or she may suggest that the property be sold. A trustee is not eligible to become a beneficiary for the purpose of protecting his or her good faith in connection to the trust.

Contact a Mount Prospect Trust Attorney


The ITC has put a wide variety of rule changes in place. For trustees who manage the assets of a trust, it is imperative to understand how the prudent investor rule affects the decisions they make. To protect against liability or any other legal issues, all trust makers and trustees should seek legal counsel to determine how the ITC will affect them. At  Drost, Gilbert, Andrew & Apicella, LLC, our knowledgeable South Barrington estate planning lawyers can help you understand your rights and responsibilities and address any concerns you may have as a trust maker, trustee, or beneficiary. 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 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

What Types of Charitable Trusts Can I Use in My Estate Plan?

Web Admin - Friday, May 31, 2019
Kenilworth charitable trusts attorneyA trust is a legal agreement created by the owner of assets or property that designates an individual (a trustee) to manage the assets and distribute them to the beneficiaries named in the trust. Assets can be distributed either during the life of the person who creates the trust (known as the grantor) or after their death. In many cases, a grantor chooses to pass their assets to relatives or close friends; however, some may also wish to support a cause they believe in by naming a charity as a beneficiary. In these cases, charitable trusts can be used, and they typically fall into one of two categories: charitable lead trusts and charitable remainder trusts.

Charitable Lead Trusts


This type of charitable trust has a time limit tied to the funding that is provided to one or more charities. Once the time period ends, the rest of the assets are given to non-charitable beneficiaries. The process begins with an initial donation to fund the trust. Charitable lead trusts do not require a minimum or maximum charitable payment amount, and a grantor may prefer to make a cash contribution to be eligible for immediate tax deductions. The payments will then be sent to at least one charity of the grantor’s choosing. This must be done at least once a year for a specific number of years or for the remainder of the lifespan of the grantor. Once the trust’s term has ended, the rest of the funds are given to the beneficiaries chosen by the grantor.

Charitable Remainder Trusts


Many will choose charitable remainder trusts because they can provide regular income for the grantor or their beneficiaries in addition to donating assets to charity. This type of trust is almost the exact opposite of a lead trust, with assets being distributed to beneficiaries during the term of the trust, and any remaining assets being donated to charity after the grantor’s death. 

The first step in creating a charitable remainder trust is making a partially tax-deductible donation. This can include cash, stocks, real estate, or private business interests. During the term of the trust or the remainder of the grantor’s life, assets held in the trust may be distributed to beneficiaries, such as the grantor’s loved ones or even the grantor themselves. Beneficiaries can receive income only once per year or as frequently as every month. After the grantor’s death, the selected charity or charities will receive the remainder of the assets. 

Contact an Arlington Heights Charitable Trusts Lawyer


Estate planning is an extremely complicated process that requires extensive attention to detail. While charitable trusts can provide a number of benefits, it is important to ensure that the correct steps are followed when creating this type of trust. At Drost, Gilbert, Andrew & Apicella, LLC, we can help you determine which trusts will be best for you and your beneficiaries. Contact a Long Grove estate planning attorney at 847-934-6000 for 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://www.fidelitycharitable.org/philanthropy/charitable-lead-trusts.shtml
https://www.fidelitycharitable.org/philanthropy/charitable-remainder-trusts.shtml 


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

Using a Special Needs Trust to Assist a Disabled Family Member

Web Admin - Friday, August 10, 2018
Inverness estate planning trust attorneyPeople who have saved money or accumulated assets over the course of their lifetime will often want to pass these assets on to their loved ones, either before or after their death. This is especially true when family members have disabilities or other special needs. However, when providing financial assistance to these family members, it is important to make sure that doing so will not make them ineligible for the public benefits they need to meet their needs. An experienced estate planning attorney can help you protect your loved ones’ interests by establishing a special needs trust.

Benefits of a Special Needs Trust

People with mental or physical disabilities are usually able to receive government benefits such as Supplemental Security Income (SSI) or Medicaid. However, eligibility for these benefits is based on the income earned and assets owned by the recipient; in most cases, a recipient must own no more than $2,000 in assets, and there are also limits on the amount of income they can earn. This means that if a well-meaning family member gives them money or other assets, either through a direct gift or an inheritance, it may make them ineligible for the benefits they need. 

To avoid jeopardizing a disabled person’s ability to receive public benefits, their family members can use a special needs trust (sometimes called a supplemental needs trust). This is a type of irrevocable trust in which the assets will be placed under the control of a trustee, which could be another family member or a financial institution. The trustee will then ensure that the assets are used to provide for the beneficiary’s needs.

There are specific rules that must be followed in special needs trusts. For instance, the trust can only be used to pay for certain expenses related to the beneficiary’s care, such as the costs of medical equipment, caretakers, transportation, or educational expenses. Using funds from a trust to pay for food or housing may make a beneficiary ineligible for public aid. 

Contact a Schaumburg Trust Attorney

Since a disabled person will often need assistance throughout their entire life, it is important to ensure that trusts are set up in a way that will provide them with the resources they need for many years to come. An Arlington Heights estate planning lawyer at Drost, Gilbert, Andrew & Apicella, LLC can help you create a special needs trust that meets your loved one’s needs, and we can help you address any other estate planning needs, ensuring that you can provide for your family both before and after your death. Contact us at 847-934-6000 to arrange 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.investopedia.com/terms/s/special-needs-trust.asp
https://money.usnews.com/money/personal-finance/articles/2015/11/04/how-to-draw-up-a-special-needs-trust-for-a-child-with-disabilities
https://www.cnbc.com/2017/10/25/how-to-set-up-a-special-needs-trust.html

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

When Can a Trustee Be Held Personally Liable for Acts Done While Acting As a Trustee?

Web Admin - Tuesday, February 23, 2016

trustee held personally liable, Illinois Trust AttorneysAs a trustee, you are responsible for managing the trust and working with the beneficiaries. You have a fiduciary duty, or a legal obligation, to act solely in the interest of the beneficiaries by fulfilling the instructions of the trust as the trustor has required. A trustee must be respectful and careful, loyal, and impartial when serving as the trustee, and cannot take advantage of his or her trusted position to self-deal or glean benefits for him or herself from the trust. Developing a full understanding of what the legal obligations are as a trustee can be confusing, especially if you have limited legal experience dealing with trusts. An experienced estate planning and trusts lawyer at can assist you. 

A Breach of Fiduciary Duty Opens Trustees Up To Personal Liability

Trustees can be held personally liable for acts, or failures to act, as a trustee when the trustee does not carefully and diligently adhere to the trustee’s duties. When a trustee commits a breach of his or her fiduciary duty, the trustee opens him or herself up to liability for his or her actions taken while acting as the trustee. Examples where a trustee can be held personally liable for acts done while acting as a trustee include the following:

- A trustee may be held personally liable if there is a conflict of interest biasing the trustee’s judgment when it comes to the interests of the trust. Self-dealing, or making decisions or investments using the trust’s funds that in some way benefit the trustee either directly or indirectly will expose the trustee to liability;

- A trustee can be held personally liable for any interest and/or penalties that accrue for taxes filings that are made late. Liability exists because filing the appropriate tax forms on behalf of the trust is a responsibility that lies with the trustee. 

- A trustee could be held financially liable for losses on stock diversifications on behalf of the trust, or a failure to diversify, if losses are substantial. The trustee has an obligation to serve in the best interests of the trust beneficiaries, and failing to diversify when stocks are concentrated in a single company can lead to a significant loss in value of the trust. 

- A trustee can be held liable for commingling personal finances and the trust finances, especially in situations where the trustee is a family member to the beneficiaries. A trustee can avoid the appearance of impropriety by maintaining clear and thorough accounting records of the finances of the trust, and clear documentation regarding his or her personal finances. 

Speak with an Illinois Estate Planning Lawyer Today

If you have concerns that your trustee is in breach of his or her fiduciary duties, or if you are a trustee with concerns about a course of action for the trust you manage, please feel free to contact one of our experienced Illinois estate planning attorneys today. Our firm 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/ilcs3.asp?ActID=2129&ChapterID=61





Recent Posts


Tags

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

Archive