Do I Need a Living Trust in Illinois
Do I Need a Living Trust in Illinois
Never say you know a man until you have divided an inheritance with him.
- Johann Kaspar Lavater
A
Living Trust refers simply to a property-owning legal entity you create while alive.
A Trust is an agreement whereby one person called the trustee can hold legal title to property for another person called the beneficiary. Having your own living trust and be the trustee of the same is possible. You will be responsible of keeping control over all property held in trust.
Does a living trust go through probate?
No, a revocable living trust does not go through probate after you die. The successor trustee you have appointed will just transfer ownership to the beneficiaries you have mentioned in the trust. The whole process usually takes only a few weeks with no court fees or lawyers to pay. If the transferring of property is done to the beneficiaries, the living trust will no longer exist.
No, a revocable living trust is not that complicated to make and you will find that it is fast, easy and affordable at 12Law.
Is it a hassle to hold property in a living trust?
No, you won't need a lot of paperwork and administrative hassle to create a living trust, unlike the experience when you transfer a property directly to a beneficiary.
Is a living trust document ever made public like that of a will?
No, the terms of living trust are not divulged to the public, which is a benefit when compared to a will.
Does Living Trust provide protection from creditors?
No. A creditor who wins a lawsuit against you can go after the trust property and claim it as payment for what you owe.
Does a living trust protect property from creditors after I die?
Generally, after you die, all property you owned including assets held in a living trust is subject to your lawful debts. A creditor who wins a lawsuit against you can go after all the properties under your name and claim it in behalf of what you owe. However, since the living trust is not a public document, creditors will have a difficult time identifying who has inherited your properties.
If I make a Living Trust, do I also need to make a will?
Yes. Your will serve as an essential back-up document for the properties you were not able to transfer to yourself as a trustee. If you have a will, it will clearly state where those properties will go. In the absence of a will, your properties will go to the closest relative in an order determined by the state law.
Can a living trust reduce estate taxes?
A simple probate-avoidance living trust has no effect on state or federal estate taxes. Deaths occurred in 2014 with estates valued at more than $5.34 million will pay federal estate tax. This amount is indexed for inflation and will go up in the future. Most estates in the US are less than the $5.34 million personal exemption.