What is a Living Trust in an Estate Plan? 

 Posted on July 16, 2026 in Wills and Trusts

There are several options for people in Illinois who want to ensure their assets are protected and their wishes are fulfilled after their death. Among these is something called a "living trust," and it is one of the most valuable asset protection instruments someone can have. Living trusts are versatile estate planning tools that offer flexibility when transferring assets to loved ones. Even better, they save your estate from having to go through a time-consuming and expensive probate process.

At A. Traub & Associates, our Lombard, IL estate planning attorneys have helped clients with many different financial concerns, drawing on over 100 years of experience. We can discuss your wealth planning goals with you one-on-one, making sure your concerns are heard and addressed.

What Is the Purpose of a Living Trust in 2026?

A trust is a legal arrangement in which one person – the trustee – holds assets on behalf of another person, known as the beneficiary. A living trust has the advantage of remaining under the control of the trustee for as long as they live, giving the trustee great flexibility over how the assets in the trust are handled (760 ILCS 3/602). A trustee of a living trust can sell, mortgage, or give away assets held in the trust at any time. Once the trustee passes away, a successor trustee appointed by the original trustee distributes the assets to the trust’s beneficiaries.

The primary benefit of a living trust is that the grantor – the person who gives the assets to the trust – can also be the trustee. A grantor who sets up a living trust and serves as its trustee retains control over the ability to modify the terms of the trust and control the use of their property however they see fit.

Why Would Someone Use a Living Trust in Illinois?

A living trust is particularly helpful for those with high net worth estates who cannot use Illinois’ simplified probate process. Many states use a Uniform Probate Code, but Illinois does not, potentially making the probate process long and complex if an estate has a value of over $150,000 or includes real estate property that will be passed down through a will or via intestacy laws. Probate court can be expensive and time-consuming, and delay the passage of valuable assets to loved ones. 

Is a Living Trust Protected From Creditors?

A revocable living trust does not protect assets from creditors. Since you keep control over the trust, and you can change or cancel it at any time, the law treats the assets as still belonging to you. If a creditor gets a judgment against you, they can go after the property inside a revocable trust just as they could go after property in your own name.

An irrevocable trust works differently. Once you place assets into an irrevocable trust, you give up control over them. You cannot change the terms or take the assets back without the consent of the beneficiaries. Because you no longer legally own the property, creditors usually cannot reach it to satisfy a debt. This added protection is one reason some people choose an irrevocable trust instead of, or in addition to, a revocable one.

Does a Living Trust Need to Be Notarized? 

Illinois law does not require a living trust to be notarized or witnessed to make it valid. As long as the trust document is properly signed and clearly states your intentions, it can hold up on its own.

That said, having your trust notarized and witnessed is still a smart idea. Notarization and witnesses can help prove that you signed the document willingly and that you were of sound mind at the time. This extra step can make it harder for someone to challenge the trust later, whether they claim it was forged, signed under pressure, or created while you lacked the capacity to understand what you were doing. A properly documented signing process gives your loved ones one less thing to argue about after you are gone.

What Kind of Assets Can You Put in a Living Trust in Illinois?

One of the biggest advantages of a living trust is its flexibility. Illinois law allows you to place many types of property into a trust, giving you control over how those assets are managed and distributed. Common assets people include in a living trust include:

• Real estate, including your home, rental property, or vacation property

• Bank accounts and certificates of deposit

• Investment accounts, stocks, and bonds

• Business interests

• Valuable personal property, such as jewelry, art, or collectibles

• Life insurance policies

A trust also lets you set specific instructions for how and when your beneficiaries receive their inheritance. Whether you want to protect a young beneficiary, plan around a family business, or simply keep your affairs private, a living trust can be shaped to match your goals.

What Are the Limitations of a Living Trust?

A living trust cannot do everything. It does not let you name a guardian for your minor children if something happens to you. A living trust also cannot express your wishes for your funeral or burial arrangements. Those instructions belong in a will or a separate document, not a trust.

This is why a living trust should not stand alone. Most estate plans pair a living trust with a pour-over will. The will catches any assets you forgot to place in the trust and directs them there after your death. It also lets you name a guardian and share your final wishes. Together, a living trust and a will create a well-rounded, comprehensive estate plan that protects your assets and your family.

Contact a DuPage County, IL Living Trust Attorney

Planning for the future is one of the best ways to protect those you love. Those who create a living trust may avoid the expense and hassle of the probate process, saving their loved ones time and money. The experienced Lombard, IL estate planning lawyers with A. Traub & Associates can help you explore your options for ensuring your wishes are protected. Call us today at 630-426-0196 to schedule a confidential consultation with our firm.