What Is a Living Trust, and Why Would I Need One?

 Posted on February 26, 2025 in Estate Planning

Planning for your death is uncomfortable for most people, but estate planning has multiple benefits for you and your beneficiaries. Regardless of your age and income level, it is never too early to start planning, especially if you have young children. A living trust, also called an Inter Vivos Trust, is a legal document that can give you better control of how your assets will be distributed after you die. It is not a substitute for a will, but living trusts are often created in conjunction with wills.

If you want to help your beneficiaries avoid probate, a living trust may be a good option. To ensure that your living trust is properly drafted, you should work with an experienced Barrington, IL estate planning attorney.

What Is Probate?

If you have a will, it needs to be validated and administered after your death through probate. The process should distribute your assets according to the terms of your will after your debts are paid. The probate process can be lengthy and costly for your beneficiaries, and probate files are available for public viewing. You can plan ahead to help your heirs avoid the various frustrations of probate, and one useful tool for doing so is a living trust.

How Does a Living Trust Work?

When you create a living trust, you can designate it as revocable or irrevocable. You will appoint a trustee, and you can choose yourself for this role. If you prefer, you can choose any other legal adult as your trustee, or you can specify someone else to act as your trustee if you become incapacitated.

Once your trust is created, you will transfer ownership of your assets to it. Your assets could be bank accounts, real estate, jewelry, other valuables, and investments. For assets that cannot be transferred to your trust, such as life insurance policies, you can designate the trust as your beneficiary. After you die, your trust should receive the proceeds. Your attorney can help you decide which assets to include and assist you with transferring ownership.

You can still retain total control of your assets and use them as you wish while you are living. You may wonder why you should go to the trouble of forming a living trust, but there are a few good reasons to consider it, including:

• Simplifying inheritances for your heirs who are minor children

• Making your assets exempt from the probate process, which saves your heirs time and keeps them from owing probate fees

• Designating someone to oversee your estate if you become incapacitated, avoiding a court-appointed conservatorship

If you wish, you can establish stipulations for when and how your beneficiaries can receive assets after your death. For instance, the trust may retain control of your children’s inheritance until they reach specific ages.

Speak With a Knowledgeable Barrington, IL Living Trust Attorney

To learn more about living wills and how one could benefit you, call Lucas Law at 847-381-8700. One of our skilled Barrington, IL estate planning lawyers will happily answer your questions during a free consultation.