Protecting Your Legacy Through Trusts In Central Illinois

Our estate planning and trust attorneys at Kerley & Talken PC recognize that protecting your assets, loved ones and future stands as your top priority when creating your estate plan. Our Springfield attorneys commit themselves to preserving and safeguarding your estate for both current and future generations. We will work with you to develop a trust that secures the financial stability and well-being of your family members, particularly in cases of incapacity or death, and ensure your plan distributes assets according to your wishes.

Our trust lawyers have over 40 years of combined experience focusing on family law and estate planning for clients across central Illinois. We dedicate time to thoroughly address all your questions and create a plan that aligns with your objectives while safeguarding your interests. Whether you want to know more about establishing a trust or seeking advice on estate planning, our well-informed lawyers stand ready to support you.

The Role Of Trusts In Estate Planning

A trust is a legal entity that holds assets outside of your estate on behalf of your designated beneficiaries. Trusts can serve many purposes, including:

• Asset protection: Trusts can shield family wealth from creditors, lawsuits and other threats.
• Special needs planning: A special needs trust provides quality-of-life extras for disabled adult children while preserving their eligibility for Medicaid assistance.
• Charitable legacy: You could endow a charitable trust to support a favorite cause in your name.
• Controlled inheritance: A trust can dole out an “allowance” to an heir who is not responsible enough to possess the money themselves.
• Efficient estate administration: Assets held in trust bypass the months-long probate process and transfer directly to the beneficiaries.
• Privacy: Probate proceedings are public records, while trusts are private.

Our attorneys can explain the pros and cons of different types of trusts that match your estate planning objectives. We help you establish and properly fund the trust and choose an individual or a professional trustee to manage it.

Securing Your Legacy: Why And How To Create A Trust

Trusts are essential instruments in estate planning, crafted to ensure controlled inheritance, provide privacy and facilitate efficient state administration. Establishing a trust allows you, the grantor (settlor), to place assets under the management of a trustee for the benefit of your chosen beneficiaries. This arrangement ensures that your assets are protected and distributed according to the specific trust terms.

There are numerous types of trusts available depending on your needs and circumstances:

• Revocable living trust: This trust allows you to maintain control over your assets during your lifetime and specify their distribution after your death. It can be altered or revoked as long as you remain mentally competent.
• Irrevocable trust: Once established, this trust generally cannot be changed. It offers benefits like asset protection and tax advantages, as the assets placed within are no longer considered part of your estate.
• Testamentary trust: As part of your will, a testamentary trust comes into effect upon your death for the purpose of asset distribution.
• Spendthrift trust: A spendthrift trust serves beneficiaries who may not know how to handle large sums of money or have financial responsibility. In a spendthrift trust, you can decide how to distribute the funds.
• Special needs trust: This trust supports beneficiaries with disabilities, ensuring they receive necessary care without losing eligibility for public benefits.
• Charitable trust: You can establish this trust to leave a part of your estate to a charitable organization, providing tax benefits and supporting causes important to you.
• Asset protection trust: Often set up as as an irrevocable trust, it can protect your assets from creditors, lawsuits or other claims.
• Totten trust: Also known as a payable-on-death account, it allows for straightforward asset transfer to your beneficiary without going through the probate process.

Navigating the complexities of trust formation requires legal guidance to ensure accuracy and legality. A trust attorney can provide crucial insights and oversight, helping you understand the implications of each type of trust and ensuring that your estate planning goals are met effectively.

The Advantages Of A Living Trust In Illinois

A living trust offers several benefits for you and your heirs during and after your lifetime. It helps avoid the lengthy and public process of probate, maintains privacy about your estate affairs and provides a mechanism for managing your assets should you become incapacitated.

A significant benefit of a living trust is its ability to avoid probate. Probate can be expensive and time-consuming, potentially taking months or even years to settle an estate, depending on its complexity. By placing your assets in a living trust, you allow for direct transfer to your beneficiaries upon your passing, without the need for court intervention, streamlining the process and reducing court costs. If you own property in multiple states, a living trust simplifies the management of these assets. Without a trust, each property must typically go through probate in its respective state. A living trust allows for centralized management of all properties, regardless of their location, avoiding multiple probate proceedings.

Unlike a will, which becomes a public document once it enters the probate process, a living trust maintains privacy. The details of your estate do not become part of the public record. This privacy ensures that sensitive information about the value and distribution of your assets remains confidential, shared only among the trustee and your designated beneficiaries.

A living trust allows for continuous management of your assets. Should you become incapacitated, the trustee you have appointed will manage the trust’s assets on your behalf. This seamless transition avoids the potential for court-appointed guardianship, ensuring that your estate is managed according to your wishes without interruption. A revocable living trust provides flexibility during your lifetime. You retain the ability to alter or dissolve the trust as your circumstances or intentions change.

How Is A Trust Different From A Will?

While both vital estate planning documents, trusts and will serve different purposes. A will takes effect only after your death, detailing how your assets should be distributed and other important information and decisions. Conversely, a trust can take effect during your lifetime, offering immediate asset management benefits. Trusts provide privacy, a chance to avoid probate and can manage your assets if you become incapacitated.

What Is The 120-Day Rule For Trusts In Illinois?

In Illinois, the 120-day rule for trusts is an important part of the trust administration process. It grants beneficiaries and heirs 120 days to contest the validity of a trust after they receive notification of the trust and its terms. This timeframe ensures that all involved parties are informed about the trust and have a chance to voice any issues before the full implementation of the trust’s terms.

What Is The 5 Or 5000 Rule?

Under the 5 or 5000 Rule, a trustee can terminate a trust without court approval if the trust has a total asset value of under $5,000. This rule intends to simplify procedures and lessen administrative burdens, especially when the expenses of managing the trust outweigh the advantages.

Let Us Help You Secure Your Future

It is never too early or too late to think about your estate plan. At Kerley & Talken PC, we will provide you with personalized trust planning services tailored to suit your needs. Reach out to us today to schedule a consultation by calling 217-814-0148 or by filling out our online contact form.