An Overview of Revocable Living Trusts for Estate Planning in Illinois

 Posted on January 17, 2023 in Estate Planning

If you are looking for a way to provide for your family’s future, a revocable living trust may be the right choice for you. A revocable living trust is an arrangement that allows you to manage and transfer your assets during your lifetime and after your death. It is important to understand the advantages of creating such a trust, as well as the legal requirements in Illinois, and a qualified estate planning lawyer can help.

What is a Revocable Living Trust?

A revocable living trust (RLT) is an agreement between an individual (the grantor) and another person or institution (the trustee). The grantor transfers ownership of their property into the trust, which is then managed by the trustee according to the terms outlined in the RLT document. With a revocable living trust, the grantor is able to retain control over all aspects of the trust, including how it is funded and what happens when they pass away. This type of trust offers many advantages over traditional wills, including avoiding probate court proceedings and reducing estate taxes.

Advantages of Creating a Revocable Living Trust

One advantage of creating an RLT is that it typically allows you to avoid probate court proceedings, which can be lengthy and costly. By transferring ownership of your property into a trust, it can be passed directly to your beneficiaries without having to go through probate court. Additionally, if you have minor children, setting up an RLT allows you to provide for them in a way that ensure that they are well taken care of. Finally, RLTs offer tax benefits in some cases since they are not subject to federal estate taxes or state inheritance taxes like wills are.

Legal Requirements for Establishing an RLT in Illinois

In order for an RLT to be legally binding in Illinois, there are certain requirements that must be met. First, the grantor must create and sign the RLT document with two witnesses present who must also sign it attesting that they witnessed its signing. Additionally, each beneficiary must receive written notice informing them about their inclusion in the trust before it becomes effective. Finally, all assets placed into the trust must be clearly identified in writing along with instructions on how those assets should be distributed upon death or incapacitation of the grantor.

Contact a DuPage County Trusts Attorney

Revocable living trusts offer many advantages over traditional wills when it comes to estate planning in Illinois, and a Glen Ellyn wills and trusts lawyer can help you understand them all. Call 630-474-0925 for a free consultation and case review at NN Legal Group today.

Source:

https://www.ilga.gov/legislation/ilcs/ilcs5.asp?ActID=4001&ChapterID=61