What Are the Estate Plan Benefits of Establishing a Trust?  

A widely held belief says that including a trust in your estate plan is only for the super-rich. Many even believe that having an estate plan at all holds no benefit for the “average” person and that a will is all that is necessary. In truth, trusts provide a wide variety of benefits for virtually every family, and including a trust in your estate plan can be a sensible choice regardless of your financial status.

A trust offers benefits that cannot be achieved with only a will, thanks to the combination of avoiding the lengthy, often expensive process of probate, as well as protecting assets and affording privacy. When you choose a knowledgeable Naperville, IL trust attorney from Gierach Law Firm, LLC, you have taken an important first step toward a comprehensive estate plan with multiple benefits. Further, our extensive knowledge of Illinois trust law gives you an added advantage. 

What Are the Basic Tenets of a Trust?

A trust creates a legal relationship between the trust itself, the trustee, and the trust’s beneficiaries. The person who creates the trust may be known as the settlor, the grantor, or the trustor. The settlor often names themselves as trustee, so they retain complete control over the trust assets until their death, at which time the named successor trustee takes over the responsibility for the trust.

The beneficiaries are those who will receive benefits from the trust, usually after the trustee dies, although in some cases it can happen before then. The trust holds title to all the assets within the trust. Not only do trusts provide a “road map” of sorts to a family that clearly details the trustee’s wishes, but they also offer estate planning and asset protection benefits that wills do not.

What Are the Most Common Benefits of Trusts in an Estate Plan?

The benefits derived from a trust will depend on the specific types of trusts in an estate plan, but in general, a trust has these advantages over a will:

•  The inclusion of comprehensive instructions that allow beneficiaries to inherit responsibly
• Avoidance of probate
• A structure that helps protect assets from creditors, legal actions, and divorce
• A level of privacy that wills and probate do not offer  
• The ability to remain in control of assets during the trustee’s lifetime  
• Preservation of wealth by reducing estate and income tax for beneficiaries  
• The ability to achieve philanthropic goals   

How Can Specific Trusts Help You Achieve Your Goals?

There are differences between different types of trusts; choosing one over another can ensure you reach your estate planning goals. Consider the following:

• A living trust is created in your lifetime, allowing you to retain full access to the assets during your lifetime, while a testamentary trust is created by your will when you die.
• A funded trust re-titles your personal assets in the name of the trust, while an unfunded trust usually has $1 during your life and then is funded by your will after your death. 
• A revocable living trust can be changed while you are alive, while an irrevocable trust cannot be changed or altered but offers significant tax benefits.     

Under the umbrella of these basic trust categories are many specific trusts that can benefit your precise situation.

Contact an Experienced Naperville, IL Trust Attorney

Attorney Denice Gierach combines her education as a lawyer, a certified public accountant, and a master’s degree in management to create a unique approach to estate planning and client service. Choosing an experienced Naperville, IL estate planning lawyer from Gierach Estate Planning, LLC can help you structure your estate plan so that all your goals are fully achieved. Our firm provides highly customized estate planning for complex estates and will take the time to fully understand your needs. Contact Gierach Estate Planning, LLC at 630-228-9413 to schedule an appointment to discuss how a trust can benefit your estate plan.