Estate Planning Attorney in Chicago, Illinois
Helping Clients Preserve Their Estate
Estate planning goes beyond current financial goals to include future ones, creating a comprehensive strategy to safeguard your wealth and assets. With multiple tools and processes involved, an effective estate plan can protect your legacy for future generations. One key tool in estate planning is a trust. By establishing a trust, you can reduce tax liabilities and bypass the probate process, ensuring that more of your assets are transferred to your family more efficiently and quickly.
What is a Trust?
A trust is a legal arrangement in which a designated third party, known as the trustee, manages assets placed in the trust. Created by the grantor, this structure allows for organized control and distribution of assets to named beneficiaries, who typically receive benefits through regular disbursements. Trusts come in various types to accommodate diverse objectives, such as reducing tax liabilities or preserving wealth, and in some cases, grantors can serve as trustees to maintain management control.
The Estate Planning, Probate, and Real Estate Clinic at Chicago-Kent College of Law provides legal services under the guidance of Attorney Deadra Woods Stokes, who works closely with law students to offer clients informed and customized estate planning solutions. Through this collaboration, Attorney Stokes and the law students analyze each client's unique goals and financial needs, recommending the most appropriate trust options to safeguard their estate. Contact the clinic to consult with experienced professionals dedicated to securing your legacy.
What Are the Main Benefits of a Trust?
Creating a trust offers several key advantages, with the most significant being the ability to bypass the probate process after death. Probate is a legal procedure that all wills must undergo after the will-maker's passing. During probate, the court reviews the will for validity and addresses any family disputes, a process that can extend for months or even years, delaying asset distribution. Trusts, however, are not subject to probate, allowing your loved ones to receive their inheritance much more quickly than if assets were distributed through a will.
Additional benefits of a trust include:
- Minimizing estate tax liability
- Shielding assets from creditors and lawsuits
- Maintaining privacy by keeping your estate plan off public records
- Allowing greater control over how and when your wealth is distributed
What is the Difference Between a Revocable and Irrevocable Trust?
With various types of trusts available, some may align better with your estate planning goals than others. If you're considering creating a trust, our team will guide you in selecting the option that best suits your financial needs.
Here are some of the most common types of trusts:
- Testamentary Trust
- Marital Trust
- Irrevocable Life Insurance Trust
- Charitable Remainder Trust
- Bypass Trust
- Special Needs Trust
- Generation-Skipping Trust
Each trust type serves specific purposes, from tax benefits to protecting assets for future generations. Contact us to explore which trust best fits your goals.
Revocable Living Trusts vs. Wills
Revocable Living Trusts
A revocable living trust, or simply a living trust, has become a popular estate planning tool due to its ability to bypass probate after the grantor's death. Probate can be costly—typically 3-10% of the estate's value—and may take two to three years to fully resolve. By setting up a living trust, you serve as the trustee, maintaining control over your assets during your lifetime. You also designate a successor trustee who will assume responsibility upon your passing, ensuring that the assets are transferred directly to beneficiaries according to the trust's terms. This direct transfer allows your beneficiaries to avoid delays and expenses associated with probate court.
Wills
One of the key advantages of having a will is that it allows you to maintain control over your estate throughout your life. Unlike a living trust, where assets are transferred to the trust, a will governs the distribution of your assets upon your passing. However, it's important to note that a will must go through probate court after your death, which can be a lengthy process, especially for larger estates that may take years to settle.
Deciding how to structure your estate is a significant matter that requires careful consideration. It's essential to seek legal counsel to guide you through the process and provide you with accurate information to inform your decisions.
Helping You Create a Customized, Detailed, & Legally Sound Document
Clearly, revocable trusts offer an excellent way to create an estate plan that is highly adaptable to changing circumstances and desires in your life. With this option, you can be assured to have great control over how your assets are managed. Our Chicago Area estate planning lawyers are able to sit down with you, better understand your unique needs and goals, and help you create a legally sound and detailed document that perfectly matches them.
We represent clients in both Cook and Will County, Illinois.
Contact us now in our office and schedule your initial consultation! WE OFFER BOTH VIRTUAL AND IN-PERSON CONSULTATIONS!!!