Beyond Bending Tell You How
Setting up a living trust is an important step in estate planning. It allows you to manage your assets during your lifetime and ensure that they are distributed according to your wishes after your death. In Illinois, the process of setting up a living trust can be straightforward with the help of an experienced estate planning attorney. Here’s what you need to know.
What is a Living Trust?
A living trust is a legal document that holds your assets during your lifetime and distributes them to your beneficiaries after your death. Unlike a will, a living trust can provide more control over your assets and avoid probate. The trust can also provide for the management of your assets if you become incapacitated.
Choose a Trustee
The first step in setting up a living trust is to choose a trustee. The trustee is the person or institution responsible for managing the trust and distributing the assets according to your wishes. You can choose to be the trustee during your lifetime, and then name a successor trustee to take over after your death or incapacity.
Identify Your Assets
Next, you will need to identify the assets that you want to place in the trust. This can include real estate, bank accounts, investments, and personal property. You will need to transfer ownership of these assets to the trust, which can be done through a legal document called a trust transfer deed.
Create a Trust Agreement
The trust agreement is the legal document that outlines the terms of the trust. It will include instructions for the management and distribution of the assets, as well as the names of the beneficiaries. You will need to work with an attorney to draft the trust agreement and ensure that it complies with Illinois law.
Fund the Trust
Once the trust agreement is in place, you will need to fund the trust by transferring ownership of your assets to the trust. This can involve changing the title of real estate, opening new bank accounts, and transferring investment accounts to the trust.
Review and Update the Trust
It’s important to review and update your trust periodically to ensure that it still reflects your wishes. You may need to update the trust if your assets change, if your family situation changes, or if there are changes to Illinois law that affect trusts.
People Also Ask:
What is the Cost of Setting Up a Living Trust in Illinois?
The cost of setting up a living trust in Illinois can vary depending on the complexity of the trust and the fees charged by the attorney. You can expect to pay between $1,500 and $3,000 for a basic living trust.
Do I Need a Living Trust in Illinois?
A living trust is not required in Illinois, but it can provide benefits such as avoiding probate and providing for the management of your assets if you become incapacitated. It’s important to discuss your estate planning goals with an attorney to determine whether a living trust is right for you.
Can I Be the Trustee of My Own Living Trust?
Yes, you can be the trustee of your own living trust during your lifetime. However, you will need to name a successor trustee to take over after your death or incapacity.
