Irrevocable Trusts Lawyer Serving Naperville, Joliet and Plainfield, Illinois
Trusts are an important element of an estate plan for many people. Similar to wills, trusts are legal documents that allow individuals to transfer assets to beneficiaries after death. There are several key differences between wills and trusts, however. At Gateville Law Firm, we are experienced in working with all types of estate planning trusts especially living trusts and irrevocable trusts. We will work with you to identify and implement the best strategy to protect and transfer your assets according to your wishes.
Living Trusts for Asset Distribution
A living trust, also known as a revocable trust, is a legal document that puts your assets into a trust during your lifetime. While you are alive, you are in control of the trust. Upon your death, your chosen representative, or trustee, assumes control of the trust. In order for a living trust to be an effective vehicle for asset distribution, you must transfer all of your assets into the trust including bank accounts, stocks, and other assets. You must also change the beneficiary on your life insurance and retirement plans to the trust.
In most cases, a “pour-over will” is also necessary to deal with any assets that are acquired after the establishment of the trust as well as any assets that are accidentally left outside of the trust. “Pour-over wills” will need to go through the probate process.
Irrevocable Trusts for Wealth Preservation
Unlike a revocable trust that you continue to control during your lifetime, once you put assets into an irrevocable trust, you no longer own them. Assets in an irrevocable trust are no longer considered part of an estate and are therefore exempted from calculations to determine tax liability. The threshold for estate tax liability is high, but if your estate exceeds it, it may be in your best interests to hold a portion of your estate in an irrevocable trust to avoid losing a significant percentage to taxes. Attorney Sean Robertson will work with you to determine if an irrevocable trust or any other type of trust would benefit your estate.
Advantages of Estate Planning Trusts
At our firm, we tailor each estate plan to the specific objectives and needs of our clients. We will carefully examine your financial circumstances and discuss your desires for your estate prior to recommending a course of action. For many of our clients, trusts are a useful tool for asset distribution and wealth preservation. There are several key advantages to using a trust in an estate plan including:
- Avoiding probate – Trusts transfer assets immediately without having to go through the sometimes lengthy and costly probate process.
- Privacy – Private financial information remains private when it is kept out of the public probate process.
- Minimize Estate Tax – If the value of your estate is greater than the threshold for estate tax liability, an irrevocable trust can minimize or eliminate the tax debt your beneficiaries will face.
For more information about estate planning trusts and if a trust should be included in your comprehensive estate plan contact our firm at 630-780-1034 to schedule a consultation. Our firm works with clients throughout Will County, DuPage County, Kendall County and Kane County.