Share Your Experience

five star review
X
Blog
Lombard Office
630-426-0196
Wheaton Office
630-426-0196
Text Us Now
630-426-0196
Subscribe to this list via RSS Blog posts tagged in Lombard trusts attorney

Lombard trusts attorneysA trust is an estate planning tool that can hold property for the benefit of beneficiaries. There are many different types of trusts that can serve a wide range of purposes. Trusts fall into two main categories: revocable trusts and irrevocable trusts. A revocable trust is created by a grantor during his or her lifetime and may then be modified or revoked at any time. Irrevocable trusts, on the other hand, cannot be charged or revoked after their creation. However, there are certain situations in which an irrevocable trust can be modified or terminated.

Benefits of an Irrevocable Trust

Many people choose to use a trust to transfer assets to a beneficiaries instead of a will. The person who makes the will, called the grantor, transfers property to the trust and designates a trustee to manage the trust. Once the grantor passes away, the assets held by the trust are distributed to beneficiaries. The beneficiaries of a trust may be family members, friends, or entities such as nonprofit organizations. When the grantor transfers assets to an irrevocable trust, he or she relinquishes control of these assets and the assets are now owned by the trust. Because the assets are no longer owned by the grantor, they no longer influence the grantor’s tax liability or the value of his or her estate. Irrevocable trusts also offer protection from creditors and lawsuits.

Modifying an Irrevocable Trust

There are only a few different ways that an irrevocable trust may be modified or revoked. The trustee or beneficiary of a trust may petition the court to request a trust modification or revocation. The Illinois Virtual Representation Statute allows certain trustees and beneficiaries to alter an irrevocable trust without having to go through the court. The easiest and most straightforward way to change or revoke a trust is for the grantor and all potential beneficiaries to agree to the change and sign a consent modification document. A grantor may also be able to petition the court to revoke a trust based on mistake. For example, if there is evidence that the grantor was told that the trust would be revocable, the court may allow the trust to be terminated.

...

DuPage County trusts attorneysWouldn’t it be nice if every individual was fiscally responsible and able to make good decisions about money? Of course it would be, but, sadly, that is the world we live in. In reality, countless people have a tough time with their finances and establishing healthy spending habits. For people like this, money tends to burn a hole in their pocket, so to speak, and is often spent in frivolous ways—at least according to their family members and friends.

This issue is frequently relevant in the realm of estate planning, as those who are creating an estate plan may have concerns about leaving a large inheritance to a child, grandchild, or another heir who has shown to be bad with money. They worry that the assets that they have worked hard to accumulate will be gone quickly, but they fear that potential family in-fighting that could result from cutting the would-be heir out of the estate plan entirely. If you are facing such a dilemma, you might consider using an incentive trust.

What Is an Incentive Trust?

By definition, an incentive trust is a trust arrangement through which you—the creator—can set conditions on how the assets of the trust will be distributed. Your conditions could be set to reward “good” behavior or to discourage behavior that you feel to be destructive or negative. For example, you could set up an incentive trust so that the trust’s assets will only be distributed to your named beneficiary after he or she graduates from high school and starts college. You could even increase the disbursement from the trust when the beneficiary completes his or her degree program.

...

DuPage County estate planning attorneyMore than half of Americans do not have any estate planning documents in place at all. Those that do most often have a will and nothing more. However, there are many estate planning instruments above and beyond a last will which can be greatly beneficial. One of these instruments is a trust.

Some people shy away from trusts because they do know exactly how trusts work or how a trust can benefit them and their family. Others assume that only the wealthy require trusts to handle the distribution of assets after their death. Neither of these estate planning myths is true. Read on to learn about the basics of trusts and how a trust may be able to work for you. 

How a Trust Works

In a last will and testament, an individual writes directions for how his or her property should be distributed to heirs upon his or her death. A trust can also address how property is passed down to beneficiaries, but in a different way. A trust establishes an agreement between a testator and a trustee. The testator is the person creating the trust and may also be referred to as a settlor or grantor. The trustee is tasked with managing the settlor’s assets and distributing those assets according to instructions contained in the trust. The trustee is a fiduciary with a legal obligation to follow the terms of the trust and avoid any self-dealing or conflicts of interest in managing assets contained in a trust.

...
Illinois State Bar Association DuPage County Bar Association Northwest Suburban Bar Association American Inns of Court DuPage Association of Woman Lawyers National Association of Woman Business Owners Illinois Association Criminal Defense Lawyers DuPage County Criminal Defense Lawyers Association
Back to Top