Planning your estate may seem scary, but it’s really just about making sure your wishes and assets are handled the way you want them to be. The truth is that most families haven’t planned as carefully as they should have. Only approximately one-third of Americans have even the most basic estate documents. This implies that in Illinois, many estates may have to undergo a lengthy probate process or have their assets distributed in ways they didn’t expect. You might be wondering, “What is a trust lawyer, and do I need one?”
A trust lawyer, also called a trust attorney, is someone who helps people manage their estates. Under Illinois law, a trust is a legal arrangement in which you (the grantor) give property to a trustee, who then manages it for the beneficiaries. The person who makes the trust is often also the trustee, which means they are in charge of it while they are alive. A trust lawyer can assist you in picking the right sort of trust and make sure all the legal papers are clear and correct. Here are some common forms of trusts:
- Revocable (Living) Trust: You can change or cancel it during your lifetime. It offers flexibility and avoids probate when you die.
- Irrevocable Trust: Once set up, you generally cannot alter it. This provides strong asset protection (often from creditors) and can reduce estate taxes.
- Special Needs Trust: Designed to benefit a disabled loved one while preserving their eligibility for government aid.
- Charitable Trust: Directs assets to charity (often with tax advantages) and may provide you or others with income during life.
Each type serves different goals (asset protection, tax savings, control, etc.), so a trust lawyer will explain which fits your situation.
The main role of a trust lawyer is to give advice and write documents. They ask you questions to learn about your family, your money, and your aspirations (for example, taking care of young children or disabled relatives). Then, they write the trust document in clear legal language that fits what you want. They also assist in paying for the trust, which means that you put your assets (bank accounts, real estate titles, and investment accounts) in the name of the trust. This step is very important: only property that is actually put into the trust will not have to go through probate later. The lawyer will help you sign (typically in front of a notary and witnesses) and make sure that all of your deeds and account paperwork are up to date.
If you’re wondering, “Do I need a lawyer for a trust?”, the answer is: in Illinois, yes. The Illinois State Bar says that only lawyers with a license can form trusts. A trust lawyer makes sure that all legal criteria are met and can even do things like write a will that “pours over” any assets that were missing into your trust.
For instance, putting money into a trust entails going through a lot of paperwork and titles. A trust lawyer helps you make a list of all your assets, write the trust instrument, then sign and notarize it. This thorough process makes sure that your wishes can be legally enforced.
It’s also about making sure things are clear and safe for the future when you work with a trust lawyer. After you die or become unable to manage your affairs, the trustee you choose (maybe you at first and then someone else) will take care of your trust. This means that you have to do legally binding things. A trustee has a fiduciary duty to act in the best interests of the beneficiaries, invest trust assets wisely, and follow the trust’s regulations exactly. They need to keep track of every dollar that comes in and goes out so that the accounts always balance. A trust lawyer can clarify these tasks and even help the trustee file taxes and follow the law, which lowers the risk of mistakes or disagreements.
Trusts have several substantial benefits in Illinois. A properly funded revocable living trust, for example, doesn’t go through probate at all. In Illinois, probate can be slow and expensive. It is the process of certifying a will and dividing up assets under the supervision of the court. You might be able to use a simplified small-estate affidavit instead of full probate if your estate is worth less than $100,000 and doesn’t include any real estate. The Illinois State Bar says that even a simple estate will take at least nine months and cost several thousand dollars to manage. If you have assets in your living trust, you don’t have to worry about that. The trustee can provide them to the beneficiaries straight away after you die. This keeps things private and speeds things up. A will, on the other hand, is made public in the local probate court.
A living trust normally goes together with a will, though, not instead of one. A trust lawyer will often write a “pour-over” will that says that any property that isn’t already in the trust goes to the trust. This makes sure that everything goes according to plan. Your lawyer will also write healthcare directives and powers of attorney in case you become unable to make decisions. In summary, an estate plan can incorporate wills and trusts to cover all the bases. The trust takes care of most assets secretly, while the will (with the lawyer’s help) catches anything that gets through.
Key Steps to Establishing a Trust
- List Your Assets. List everything you possess, such as your Chicago house, bank and brokerage accounts, retirement assets, business interests, personal treasures, and so on.
- Initial Consultation. Talk to a trust lawyer about what you want to do. They’ll tell you how revocable and irrevocable trusts are different, as well as how special-needs trusts work in Illinois.
- Choose the Trust Type. With the help of your lawyer, choose the trust that is best for you. For instance, a revocable living trust lets you have control while you’re alive, and an irrevocable trust can protect your assets from creditors or lower your estate taxes.
- Draft and Review. Your lawyer writes the trust document. Pay close attention to it. Be careful to include the right names (you as grantor, successor trustees, and beneficiaries) and explain how and when distributions will happen. Your lawyer will add whatever terms you wish, such as reserving money for kids until they reach a specific age.
- Sign and Notarize. You and a witness, if necessary, sign the trust in front of a notary public. In Illinois, many estate documents must be notarized in order to be legal. The trust is legally active once it is signed.
- Fund the Trust. This is an important step: put the assets in the name of the trust. That entails updating the names on deeds, titles, and account registrations. You could record a deed transfer into the trust for real estate. You alter the account owner to “[Your Name] as Trustee of [Your Trust Name]” for bank accounts. Your lawyer will help you avoid mistakes. It may still need probate if a major asset is left out.
- Regular Reviews. You should update your trust as things happen in your life, such as getting married, getting divorced, having a baby, or moving. A trust lawyer will tell you to examine and update your plan regularly to make sure everything is up to date.
There are legal differences in each of these procedures, so having a lawyer you can trust by your side makes the process go more smoothly and lawfully.
Illinois law says that trusts stay private, while wills become public records. A lawyer can assist your heirs in avoiding probate by putting your assets in trust. Illinois courts say that if all of your assets are in a trust before you die, “the trustee can start making distributions shortly after your death” and skip the arduous probate court process.
Trust Administration and Duties
The trustee, whoever you choose, takes care of the assets once your trust is set up and funded. Trustees have important jobs to do. They need to do what’s best for the beneficiaries, make smart investments, and never mix trust assets with their own money. It is important to keep track of every penny that goes in and out of the trust, including interest earned and bills paid. The law says that these fiduciary duties must be followed. Even if the trustee is also a beneficiary, they must nonetheless follow the provisions of the trust correctly. This is another way that a trust lawyer may help: they tell trustees how to properly handle distributions, paperwork, and tax returns. If there are conflicts, as when beneficiaries disagree with a choice, the lawyer can help settle the matter or represent the trust in court.
Integrating Wills and Other Tools
A trust is a really useful instrument, but it’s usually only one aspect of a bigger plan. Your trust lawyer will usually also write a will that goes along with it. A will can “pour” any little assets that aren’t put into the trust when you die. Your lawyer will also prepare powers of attorney for your finances and health care so that someone you trust can take care of things for you if you can’t. The lawyer can write guardianship clauses into the will if you have young children. In brief, the lawyer makes sure that everything is taken care of: trusts take care of most of your estate, and wills and powers of attorney take care of the remainder. They make up a complete plan.
Ready to Move Forward? Talk to 23 Legal About Your Trust Plan
It shouldn’t be hard to get the correct trust lawyer. If you’re considering setting up a trust or just want to know what your alternatives are, it makes a big difference to work with someone who knows Illinois law and really cares. That’s exactly what you’ll get at 23 Legal.
Ben Weaver at 23 Legal treats each client as an individual, with a down-to-earth approach. He listens, gives advice, and makes things easy instead of hard. Ben is available to help you with your estate planning, setting up a trust to safeguard your family, or answering questions regarding your assets. Call 23 Legal if you’re ready to chat about your estate goals. We’ll work with you to build a strategy that works for you.
FAQs
In Illinois, yes. State law generally requires that trusts be prepared by attorneys. Even if it weren’t mandatory, a lawyer’s expertise is invaluable. They help avoid mistakes in paperwork, ensure assets are properly titled, and tailor the trust to your specific goals (like protecting a child’s inheritance).
A trust lawyer knows all the legal requirements: how to phrase the trust document, how to avoid tax pitfalls, and how to fund the trust correctly. For example, failing to retitle a house into the trust could mean it still goes through probate. Your attorney will handle these details.
Yes. If your assets are in the trust when you die, probate isn’t needed for those assets. The trustee can distribute them immediately to beneficiaries. This saves time, money, and keeps your affairs private.
Absolutely. In fact, most estate plans use both. The trust covers assets titled in it; the will covers anything you missed and names guardians for minors. Your lawyer will coordinate both documents so they work together seamlessly.
Look for attorneys or law firms with experience in estate planning and trusts. Check if they mention Illinois or Chicago on their site, and read reviews. Many offer an initial consultation. You can also ask friends or financial advisors for recommendations. The right attorney will listen to your concerns and explain things clearly.
Why Choose 23 Legal
23 Legal offers Real Estate and Estate Planning legal services to individuals, families, community associations and small business owners throughout Chicagoland. We know how intimidating “the law” can be. In fact, when most people think of law offices, they think of stuffy leather chairs, huge wooden desks and pompous lawyers who charge outrageous fees. That’s not us! We believe in 1-to-1; the same lawyer should work with you all the way through. Whether you have an estate planning issue, family trust concern, or you have a legal problem in regard to a new home, business, real estate or remodel, you need a lawyer who cares. That’s where Ben comes in! We are great listeners; more than that, we are lawyers who believe that our clients always come first.
