Your Family Matters

How could a trust be an effective part of your estate plan?

On Behalf of | May 28, 2024 | Estate Planning

Illinois residents who are beginning to think about estate planning have probably considered that perhaps a “trust” could be part of their comprehensive plan. So, what is a trust, and could a trust be an effective part of your estate plan?

An overview of trusts

First and foremost, a trust is a separate legal construction – it stands on its own. A person can establish a trust by transferring ownership of assets so that, when that occurs, the trust is actually the owner of the assets in question.

There will be a “trustee” – the person or entity that has a fiduciary duty to administer the trust and to do so in the best interests of the named “beneficiary,” who is the person – or more than one person – who will benefit from the assets held by the trust.

People use trusts as part of estate plans for a variety of reasons. Mostly, however, a trust can help avoid certain tax implications and can also help make the transfer of assets easier, usually avoiding the probate process altogether.

But, the reality is that there are many different types of trusts these days and, depending on your own unique family and financial situation, a trust may or may not be something that would be beneficial to include in your estate plan.

Trust as part of your estate plan

If you are thinking about getting your estate plan together, there will likely be quite a few decisions to make before you put pen to paper to finalize the details of the plan.

Considering all potential options, including trusts, is just part of a good approach to making sure you have the best, most comprehensive estate plan in place for your needs and the needs of your family.