Protecting Assets
Protecting your financial future from medical bills that result from a serious illness or injury can help you prevent bankruptcy and other catastrophic debt. While surgery, physical therapy, and other medical costs can skyrocket out of control quickly, establishing a living trust before they occur may help you protect your savings and other assets.
Consider Your Medical Risks
Before you can set up a living trust to protect your finances, it is important that you consider your risk connected with the likelihood that you will incur large medical bills. To do so, you can review several different factors that may include:
- Pre-existing medical conditions
- Your current health/recent medical procedures
- Your risk for stroke or heart attack
If you are unsure about your current medical status, you may want to have a complete medical checkup and ask your doctor to check for any issues that could cause your health to decline over time, such as type II diabetes.
Review Your Current Assets
Before you hire a lawyer to help you draft a living trust, you may want to gather and review your assets so you understand what your belongings are worth. Include cash, checking and savings accounts, cars, and real estate. You may want to keep in mind that vehicles and real estate may depreciate in value over time, so occasional adjustments of the total worth may be necessary.
Create an Irrevocable Trust
You may be able to protect your assets with more certainty if you create an irrevocable trust. Unlike a revocable trust, this type of document cannot be changed or amended in any way once it is set up. This can help guard the contents of the trust from creditors, including hospitals and other medical facilities. This can be especially helpful if you want to protect assets for your children or grandchildren and ensure the money is there for the future, even if you do incur significant medical costs due to a sudden illness or disability.
Speak to an Attorney
While it is possible to set up a living trust on your own, doing so with the assistance of an attorney can give you peace of mind that the documents are valid and correct. An estate planning lawyer may also be able to advise you about how to organize your assets, how much to add to the trust, and what kind of taxes you may have to pay on it.
A trust can protect your assets from medical expenses, especially when an illness or accident causes catastrophic debt. Contact a lawyer today for additional information and assistance.
Schaumburg Trust Lawyer FAQs
Our Schaumburg, IL trust lawyer helps individuals and families make informed decisions about their estate planning. When setting up a trust, it’s important to work with a lawyer who understands your specific goals and helps you put the right legal protections in place. Whether you’re creating a new trust or updating an existing one, knowing what to expect can make the process more straightforward. Below, we answer common questions about working with a trust lawyer.
How Do I Prepare For My First Meeting?
Before your initial consultation, gather any documents related to your assets, including property deeds, financial statements, and business interests. Consider your goals for the trust—whether it’s to provide for family members, support a cause, or protect assets for future generations. Our Schaumburg trust lawyer will review your information, discuss different trust options, and guide you toward a structure that aligns with your wishes.
What Types Of Trusts Can I Set Up?
There are several trust options, each serving different purposes. Revocable trusts allow you to retain control of your assets and make changes as needed, while irrevocable trusts provide stronger asset protection but limit your ability to modify terms. Other options, such as special needs trusts or charitable trusts, serve specific beneficiaries or purposes. We will explain the benefits of each and help you determine what best fits your situation.
How Long Does It Take To Create A Trust?
The timeframe depends on the details of your estate and the type of trust you choose. A simple trust may be completed within a few weeks, while more complex arrangements involving multiple assets, tax considerations, or business succession may take longer. Our skilled team efficiently drafts and finalizes documents so that your trust is legally sound and ready to serve its purpose.
Will I Need To Update My Trust Over Time?
Yes, it’s a good idea to review your trust regularly, especially after major life events such as marriage, the birth of a child, or significant financial changes. Laws affecting estate planning may also change, making periodic updates important. We help clients keep their trust documents current so their estate plans reflect their latest wishes and circumstances.
What Happens After My Trust Is Created?
Once your trust is in place, you will need to transfer assets into it, a process called funding. This step is essential for the trust to function properly. We guide clients through funding their trust and making any necessary adjustments over time. If you appoint a trustee, we can also provide guidance on their responsibilities to help keep everything running smoothly.
Moving Foward
Working with our trust lawyer gives you confidence that your estate is structured the way you want. For over twenty years, our team at Bott & Associates, Ltd. has provided clear guidance and personalized solutions for individuals and families. If you’re ready to start planning or need to update an existing trust, contact our Schaumburg trust lawyer today to schedule a free consultation.
