Establishing a Trust in Geneva

 Posted on July 11, 2022 in Estate Planning

Estate plans specify how assets are handled after a person’s death or during a person’s incapacitation. This preparation provides a family with peace of mind and can help eliminate the burden of possible lengthy probate proceedings and costly legal fees. A will not only outlines how an estate is allocated but also assigns the executor. If the dependents are children, estate planning can determine guardianship.

Without a valid will, the person who died is considered to have died intestate, designating the state as the executor. The state then determines the recipients and handles the estate distribution according to state law. A detailed, legitimate will is essential if you wish your assets to be distributed a certain way. A will has ilmitations, so establishing trusts further protects one’s wishes. An estate planning attorney can explain the different types of trusts and help select the ones suitable to a client’s needs.

Differences Between Trusts and Wills

Unlike a will, a trust takes effect immediately. In a trust, the trustor must transfer their property into the trusts, while a will only entails listing the estate and recipients. Transferring real estate property into a trust often necessitates retitling the property.

Another major difference is that probate is required to implement a will, whereas trusts do not need to pass through the courts. Probate court can sometimes be lengthy and costly, causing delays in the distribution of assets. Property from a trust is immediately distributed to the beneficiaries.

Five Types of Trusts

1. Testamentary trusts – These trusts are instructed from a last will and testament. A legally and ethically bound fiduciary is the third party who oversees the trust's assets on behalf of its beneficiaries.

2. Charitable trusts – These philanthropic trusts are established to donate funds to a charity.

3. Revocable living trusts – Also known as "inter vivos," these trusts can be changed and accessed at any time. Beneficiaries of living trusts can circumvent estate taxes and time-consuming and costly probate court.

4. Irrevocable trusts – Those who establish this trust cannot access the funds or revoke or modify them. Irrevocable trusts are more complex than revocable ones and include advantages like possible estate tax exemption and protection from creditors.

5. Special needs trusts – These trusts are imperative for dependents who are disabled. A special needs trust permits the beneficiary to receive social security benefits and government assistance.

Contact a Kane County Trust Attorney

At Loire Krajniak, LLC, family law and estate planning attorney Cherissa "Reese" Loire Krajniak is adept at creating trusts and wills. Reese and her team of professionals treat their clients with compassion and dignity and aggressively aim for favorable solutions. Whether you need to establish a trust or create a will, Loire Krajniak, LLC, is committed to customizing reliable estate plans for you and your family. For a free consultation, contact an Geneva estate planning attorney at 630-448-2406.

Sources:

https://www.investopedia.com/terms/t/testamentarytrust.asp

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