Money Management Schaumburg, IL
When many residents of Illinois hear the words “estate planning,” they think of a person dying and the reading of their last will and testament. The reality is, however, there is much more to estate planning than just the person’s death. There are many tools in place that can help protect the assets and property a person has so that when they do pass, those funds are there to provide for the loved ones they leave behind. An estate planning attorney from Bott & Associates can help you with many aspects of money management in Schaumburg, IL.
There are many tools that an attorney can utilize to help clients protect their assets, including wills and trusts. One of the most common tools is a living trust. A living trust can provide a person with much more control over transferring assets to a beneficiary while providing a way to avoid the whole lengthy and often costly probate process. Unlike some other types of trust, the person setting up a living trust still maintains complete control over it, maintaining money management in Schaumburg, IL over their own finances.
While a will only becomes effective when a person dies, a living trust goes into effect as soon as it is legally created. The person who sets the trust up is referred to as the grantor. The person who will receive the contents of the trust is referred to as the beneficiary. The grantor maintains control over the trust until their death. In essence, they are the trustee of the living trust. They may also choose a trustee who will oversee the trust until the contents are turned over to the beneficiary under the terms that the grantor has specified. In some cases, the beneficiary may receive the funds immediately following the grantor’s death. In other cases, such as when a beneficiary is a minor child, the trustee will maintain control over the funds per the directions of the grantor.
Some people may be concerned that if they set up a living trust, they will lose control over whatever assets or property they place in the trust. One of the benefits of a living trust is that the grantor can add or remove assets whenever they choose. They can change the terms of the trust or even completely revoke the trust at any time.
Avoiding probate process
A living trust can serve as an excellent alternative to probate, because the successor trustee distributes assets according to written instructions of the trust creator, without court intervention. An attorney from our firm can help determine if a living trust may be a viable money management tool for your unique situation.
As a court-supervised process of distributing a deceased person’s estate, probate can sometimes become a lengthy process. The probate process may also diminish what beneficiaries can inherit and delay distribution assets to them.
Which in many cases can mean less time spent distributing assets to heirs from months or years, to only weeks – without any additional estate expenses.
Also, if property is owned in another state, that property may be passed directly to your beneficiary, they may not be subject to probate in that state.
A living trust may save time and money
As described above, a living trust can save money by avoiding probate expenses at your death.
However, the initial cost of setting up a living trust may be more costly than creating a will. A living trust is a more specific legal document that requires more energy and action, as the trustor must also fund the trust with assets. A money management professional will be able to help decide what the best option is.
The value of privacy
As mentioned above, one of the benefits of a trust is the avoidance of the probate process.
By avoiding the probate process, a living trust helps maintain privacy by avoidance of court. In a living trust, the interactions between the involved parties will not become part of public record. No one can later search public records to learn about the distribution of an estate by means of living trust. A money management professional will be able to provide information that will aid in making the decision to create a living trust.
A specific plan documented in the event of incapacitation
In the event that a living trust holder becomes ill or incapacitated, the successor trustee may step in to oversee related affairs without court oversight. In this capacity, one can avoid court-appointed conservatorship of your estate related affairs. The revocable nature of a living trust implies that the trust holder can dispute implications of incapacitation, thus retaining control of your estate affairs. Our team is experienced in consulting clients who are planning an estate, and are ready to provide advice for your unique situation.
Certainty and peace of mind for loved ones and trusters
Other aspects of a living trust seen as beneficial are derived from the detailed nature of the documentation of intentions. By having a detailed plan of action, one can help prevent unintentional disinheritance, and help provide specific instructions for care of a loved one who may have special needs. Additionally, a living trust can help protect specific assets from certain people.
Each of these points contribute to having greater peace of mind, knowing that the estate will be handled exactly as documented. Loved ones may also benefit from greater peace of mind, knowing exactly what has been documented as it pertains to them.
Let Our Firm Help
If you would like to learn more about how estate planning tools can help you with money management in Schaumburg, IL, our firm is here to help. Please contact our office today to schedule a free and confidential consultation with one of our estate planning attorneys and let us help you put together a solid plan that will protect your family when the day comes when you are no longer here. Call Bott & Associates today.