What You Need to Know About Trusts
If you are going through the estate planning process, you might be thinking about having a revocable trust drafted. You might also wonder if a revocable trust is right for you— perhaps there could be an alternative option that is more suitable? Before you initiate the process, you and an estate planning lawyer should carefully analyze your goals, applicable taxes, and assets to determine whether a revocable trust is a good choice. At Bott & Associates, Ltd., we understand that this can be a confusing matter. It’s our goal to help our clients create estate plans that best suit their needs.
Is a Revocable Trust a Good Choice?
An experienced estate planning lawyer Rolling Meadows, IL relies on will have likely drafted both revocable and irrevocable trusts. If you’re considering either option, you’ll want to speak with a lawyer in Rolling Meadows, IL to ensure that it will be beneficial for your estate planning needs.
Without a close analysis of your financial situation and objectives, it is difficult for any estate planning lawyer to tell if you’re a good candidate. The best way to determine if it is the right option for you is to schedule a consultation with an estate planning lawyer.
That being said, revocable trusts can be very beneficial for some; however, this is typically not the majority.
Claim: A revocable trust helps people to avoid estate and inheritance taxes.
Reality: This type of trust does not reduce any taxes because it can be revoked.
Claim: Creditors cannot put a lien on a revocable trust.
Reality: If you take back any asset, creditors can place a lien on that asset. If you’re interested in a trust that prevents creditors from claiming assets, you should consider an irrevocable trust.
Claim: Probate is automatically avoided with a revocable trust.
Reality: In order to avoid probate, your assets need to be carefully arranged in the revocable trust. This includes, but is not limited to, bank accounts, deeds, annuities, life insurance policies, etc.
Understanding Revocable Trusts
A revocable trust must be drafted and signed by you in order for it to legally exist. Once this is complete, you can add assets as you please; however, these can be revoked at anytime. Furthermore, most revocable trusts state that all the assets held within are to be used for your care. You will be the Grantor and the sole Trustee.
A revocable trust can hold various assets for your beneficiaries. After your death, your appointed trustee can manage and distribute your assets as described in the trust. When a lawyer structures a trust correctly, it can replace a will. The cost to set up a revocable trust can vary significantly and it often depends upon the circumstances of your own case. In general, if you’re only trying to avoid probate, a revocable trust may not be cost efficient unless you are in certain states. You can talk with an estate planning lawyer from Bott & Associates, Ltd. for more information about your options.
Additional Reasons to Draft a Revocable Trust
- Reduce the possibility of a contested will
- Avoid probate, especially when you have property or bank accounts in multiple states
- Manage your assets and expenditures
Count on Bott & Associates, Ltd. for Your Estate Planning Needs
If you would like to know more about revocable and irrevocable trusts, please call Bott & Associates, Ltd. today to arrange a free consultation with an estate planning lawyer Rolling Meadows, IL families trust.
What is asset protection?
Many people may not think they need an asset protection plan. However, it’s important to protect the things you own as well as the hard-earned money you’ve saved or invested over the years. You never know when you’ll be in a situation where a creditor is threatening to sue you. It can happen to anyone, and if you aren’t protected, you could lose a lot of money. If you have not yet considered speaking with a Rolling Hills, Illinois estate planning lawyer about asset protection, now is the time.
Asset protection is the process of guarding one’s wealth. It involves protecting your property, money, retirement plan, estate plans, and any other assets you have from someone trying to sue you or sue your estate.
Asset protection is important for both businesses and individuals – and not just for super-wealthy individuals. Anyone can be sued and from a variety of places – credit card companies, foreclosures, car accidents, unhappy customers, etc. By protecting your assets, you are protecting your livelihood and the integrity of your estate. It is for this reason that you should be thinking ahead and meeting with an experienced Rolling Hills, IL estate planning lawyer at Bott & Associates, Ltd. If someone tries to sue your estate, it will be too late for you to do anything to protect your assets. Being proactive now can save your heirs headaches down the road.
What does an asset protection lawyer do?
Asset protection lawyers specialize in creating what’s known as “asset protection plans”. There are very specific regulations around protecting your assets so you’ll want to make sure you work with someone who is an expert in this field.
Everyone’s situation is unique and there are a wide variety of ways you can protect your assets. But a Rolling Hills, IL estate planning lawyer can work with you to help you find the plan that is best for you.
A good lawyer won’t make you hide your assets (unless the resources used to do so are completely legal and you are comfortable with this strategy). By having a solid plan, it makes it harder for the creditors or people suing you to get access to your assets. Having a custom and complex system means that you have a unique shield, or armour, protecting you. If you use a “do it yourself” kind of tool, big creditors who are trying to sue you (and have sued many people in the past) will know exactly how to pierce through your armour.
With a custom plan, set up by an asset protection lawyer, your armour is tough and difficult to penetrate. Creditors will have to go through long, expensive trials in order to get to your assets. So, more often than not they will decide to settle, and generally, the settlement will be way less than the amount they are trying to take.
By having a professional take control of your asset protection plan, you can have peace of mind knowing that your wealth is protected.
You’ll want to protect your assets before a lawsuit happens. It will be harder to protect your assets – or block those trying to sue you, from having access to your assets, in the midst of a claim. In this type of situation, it’s better to be safe than sorry. By spending a little money now on getting your assets protected, you could save a lot of money in the long run. Reach out to a Rolling Hills, IL estate planning lawyer today for a consultation.