MODERN CONVENIENCES & FLEXIBLE OPTIONS
Hinsdale Trust Lawyer
What is a trust?
Trusts allow a third party, or trustee, to hold assets on behalf of a beneficiary or multiple beneficiaries. There are many ways in which trusts can be structured. The beneficiaries of a trust usually gain access to the assets faster than they would if the assets were transferred through a will since trusts are usually exempt from probate. Because trust assets can pass outside of probate, it reduces both estate taxes and time costs. In addition, it may not be taxable if it is an irrevocable trust, so you may pay fewer taxes upon death.
What Types of Trusts Are There in Illinois?
Common types of trusts include:
- Revocable trusts
- Irrevocable trusts
- Insurance trust (ILITs)
- Special needs trusts
- Charitable trusts
- Gift trusts for your children or grandchildren
A revocable trust is the cornerstone of a well-developed estate plan. The trust is a fiduciary arrangement in which the trustee holds assets on behalf of the beneficiaries. Revocable living trusts are useful for several reasons, including ensuring that assets are distributed according to your wishes, avoiding or limiting probate, maintaining the privacy of your distribution plan, and allowing a successor trustee to manage your assets for your benefit in the event you become incapacitated. While you are living, you can amend or terminate your revocable trust to reflect your intentions. Russo Law Offices can assist you with this process.
What Parties Are Involved in a Trust?
To properly function, trusts involve three distinct parties. You may serve as grantor, trustee, and beneficiary while you are living in order to update and maintain control of your revocable trust.
The roles of these three parties are:
- Grantor: The grantor establishes the trust by signing the declaration of trust and funds the trust by transferring property to the trust.
- Beneficiary: The assets of the trust are held on behalf of the beneficiaries of the trust. The trust document dictates the standards upon which the trustee can make distributions of the trust assets to the beneficiaries.
- Trustee: The trustee manages the assets of the trust for the benefit of the beneficiaries. You can act as trustee of your revocable trust while you are living so that you have control over the assets and terms of the trust. Upon your incapacity or death, a successor trustee will manage your assets according to the provisions of the trust document. Both individuals and corporate entities, such as banks, commonly serve as trustees.
The trust attorneys at Russo Law Offices have extensive experience in assisting clients with estate planning. While tomorrow is never guaranteed, what happens to your property can be. We serve clients throughout Illinois with all estate planning needs.
“My experience with Russo Law Offices, LLC was exceptionally supportive. Attorney Allyson B. Russo assisted me with legal advice that made clear the legalities of my parent's property and how I needed to respond to a related summons.” - Caprice W.
“Allyson is very knowledgeable about estate matters and shares her experience in a clear and forthright manner. She was very pleasant and patient with our questions and prompt with written and oral responses.” - Rita H.
“We enjoyed working with Russo Law Offices for our estate planning. They took their time to explain the details of this process and walk us through all of the steps. They helped us navigate this journey even during the pandemic.” - Mark M.