What Factors You Should Know About Living Trusts
Creating a living trust can be intimidating for many people, to say the least. When it comes to making decisions for how you want your belongings handled after your passing, people can become understandably emotional. Thinking about a time when you are no longer with your loved ones can be very stressful. While this task may seem scary at first, do keep in mind that the overall intention is to help ensure your legacy is carried on to those you cherish the most in life.
Whether you are just starting to create a living trust or need a refresher, you may find the following tips offered by a Schaumburg, IL trust lawyer useful. For more detailed information, contact Bott & Associates, Ltd.
How do I know what type of living trust is right for me?
There are two types of living trusts, revocable or irrevocable trust. Depending on your life circumstances, one may be more suitable than the other. With revocable trusts, the trustor is able to make changes to the document throughout the course of his or her lifetime. This includes being able to change beneficiaries, deleting the trust altogether or adding more assets. However, the creator of the trust is considered the owner by law and the estate shall be taxed while the person is still alive.
An irrevocable trust cannot be changed once it has been created. The trustor is essentially giving up his or her rights to the trust contents by writing this kind of trust. The appointed successor trustee is the person who shall manage the creator’s trust, instead. The benefit of this type of trust is that since the creator is no longer viewed as the owner, the estate can avoid taxation.
What is a special needs trust?
Individuals who want to provide funds for a beneficiary that is currently getting funding from the government can benefit from establishing a special needs trust. In general, a person who receives inheritance of a monetary value may be disqualified from getting support from the government. By creating a special needs trust, the beneficiary can still be eligible for government aid.
What qualities should I look for in my successor trustee?
Your successor trustee can be a family member, close friend, business partner, independent party, or another individual you trust to handle your assets in the event of your passing. While this person does not necessarily have to be knowledgeable about trust legalities, you may want to appoint someone who is responsible and cares deeply for you. Do keep in mind that the successor trustee may have to deal with grieving, emotional, and agitated family members after your passing, too.
What if I have questions while writing my living trust?
If you have questions or concerns while writing your living trust, you can contact a trust lawyer Schaumburg, IL clients recommend for advice. Call the legal team from Bott & Associates, Ltd. today to set up a consultation to discuss what your estate planning needs may be.