While a majority of our clients choose to utilize a living trust, the decision is very individualized. A living trust is not for everyone. The best decision comes from carefully weighing the pros and cons based on your personal situation in consultation with an estate planning attorney.
If it is a revocable living trust, then yes. As long as you are alive and competent, you may change the terms of the trust in any way you wish or may revoke it altogether. You remain in control.
Yes. This is commonly referred to as a “joint trust”. Joint trusts work well in some situations, but not so well in others. There are significant income and estate tax consequences. Additionally, the surviving spouse will generally be able to change the terms of the trust.
No. A revocable living trust is income tax-neutral during your life. The trust (known as a “grantor” trust) is essentially ignored for income tax purposes during your life while you are beneficiary. After your death, the trust becomes it’s own taxpayer and will have income tax consequences based on how it is structured and administered, which can create opportunities for trusts that are thoughtfully drafted and administered.
An irrevocable (gift) trust may provide some asset protection. A revocable living trust will not. Property held in a revocable living trust is reachable by creditors just as the property would have been in your sole name or in joint tenancy.
No. All assets in a typical revocable living trust are treated as owned by the grantor. If medicaid qualification is your goal, you should contact an attorney that concentrates in elder and medicaid law.
Not in Illinois. Some other states may have different requirements, but one of the principal advantages of a living trust is privacy. Unlike a Will, which must be made public record after you die, a trust remains private and is not filed or recorded.
Yes. Trusts are well recognized and respected all over the country. Nonetheless, if you move to a new state it is wise to have your Trust, your Will and your Powers of Attorney reviewed by a local attorney, and amended as needed based on your current situation.
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