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Estate planning often brings up tough questions. How do you protect your loved ones? What happens to your assets after you pass? In Illinois, one tool that many families consider is the revocable living trust. While this type of trust offers some clear advantages, it’s not the right fit for everyone. If you’re considering a revocable living trust as part of your estate plan, here’s what you should know about the pros and cons, especially under Illinois law.
What Is a Revocable Living Trust?
A revocable living trust is a legal document you create during your lifetime to manage your assets. You, as the grantor, place your property into the trust and typically serve as your own trustee. That means you stay in full control of your assets while you’re alive. And because the trust is revocable, you can amend or revoke it at any time.
When you pass away, the person you named as successor trustee takes over and distributes the assets according to your instructions,without going through probate.
But is that benefit alone enough to make it worth it? That depends.
The Pros of a Revocable Living Trust in Illinois
1. Avoiding Probate
This is one of the biggest advantages of a revocable trust. In Illinois, probate can take six months or longer,even for relatively straightforward estates. When assets are held in a properly funded trust, they bypass the court process entirely. That means faster distributions and fewer headaches for your family.
2. Privacy
Probate is a public process. That means anyone could access the details of your estate through court records. A revocable living trust, on the other hand, keeps things private. Your assets, your beneficiaries, and your instructions remain confidential.
3. Continuity During Incapacity
If you become incapacitated and unable to manage your finances, your successor trustee can step in and manage the trust on your behalf. This avoids the need for a court,appointed guardian and can help ensure your affairs stay in order.
4. More Control Over Distribution
With a trust, you can get specific about how and when assets are distributed. Want to stagger distributions to a young adult child over several years? Want to hold funds in trust for a loved one with special needs? A living trust gives you more flexibility than a basic will.
The Cons of a Revocable Living Trust in Illinois
1. It Requires Upfront Work
Creating a trust isn’t just about signing documents. You have to fund the trust, meaning you must retitle your assets (like bank accounts, real estate, and investment accounts) into the trust’s name. That takes time, attention, and often some legal guidance to do it correctly.
2. It Costs More Than a Simple Will
While a trust can save money on the back end by avoiding probate, the upfront cost is higher than drafting a will. That said, for many families, the long-term benefits outweigh the initial investment.
3. It Doesn’t Eliminate All Probate
If any assets are left out of the trust,or not properly retitled,they may still need to go through probate. That’s why even with a trust, it’s important to have a “pourover will” as a backup to catch anything not placed into the trust.
4. No Asset Protection from Creditors (While You’re Alive)
Unlike some irrevocable trusts, a revocable living trust offers no protection from your own creditors while you’re living. Since you control the assets, they’re still legally considered yours
Is a Revocable Living Trust Right for You?
A revocable living trust can be a powerful estate planning tool in Illinois,but it’s not one-size-fits-all. The right plan depends on your goals, the complexity of your estate, and your family dynamics. For many people, combining a trust with a will and powers of attorney provides the best of both worlds.
If you’re considering a revocable trust and want help deciding whether it’s the right move, we’re here to help.
Speak With an Illinois Estate Planning Attorney Today
At Bielski Chapman, LTD, we help individuals and families across Illinois build smart, personalized estate plans that make life easier,now and in the future. If you’re thinking about a revocable living trust, we’d be happy to walk you through your options.Call our office at (312) 583,9430 or fill out our contact form to schedule a complimentary 15, minute consultation.