Practice Areas
Trusts
Establishing a trust is one of the most effective ways to protect your family, preserve your assets, and avoid the time-consuming probate process.
GET A FREE 30-MINUTE CONSULTATIONWhat a Living Trust Does
A living trust is an arrangement made while you are alive that holds ownership of property and other assets on behalf of someone else. Property can be added or removed from the trust at any time, presuming the correct paperwork is filed.
The biggest benefit of a living trust is that it allows you to avoid probate — a process that is both lengthy and very public, and can consume up to 5% of the estate in fees. Unlike a will, your trust actively survives your death, guided by the successor trustee so that all trust property is delivered as laid out.
A living trust can hold a wide range of property, including:
- Real estate
- Stocks, bonds, and brokerage accounts not held in TOD
- Precious metals, antiques, and heirlooms
- Special collections and works of art
- Small business interests and shares
- Patents, copyrights, and digital property
Benefits of a Living Trust
- Maintaining control of trust property and assets while you are alive
- Avoiding interference on incapacity
- Improving privacy, since a trust is not made public
- Protection from court challenges
- Set up long-term care for beneficiaries with special needs (may require specialty trust)
- Ensure firearms are passed down without violating federal and state regulations (may require specialty trust)
FREE GUIDE: Will vs. a Trust — What is Best for You?
Estate planning is full of choices. This guide will help you decide whether a will or trust is right for you.
CLICK HERE TO DOWNLOAD FREETypes of Trusts
We Draft All Types of Trusts
Schottler & Associates has the skills and expertise to develop a declaration of trust for a wide range of trust types, tailored to your specific needs.
Revocable Living Trust
The most common type of trust. You retain full control during your lifetime and can modify or revoke it at any time. Upon your death, assets pass directly to beneficiaries without going through probate.
Irrevocable Living Trust
Once established, this trust generally cannot be changed. In exchange for giving up control, assets may be protected from creditors and removed from your taxable estate.
Special Needs Trust
Designed to provide for a beneficiary with disabilities without disqualifying them from government benefits such as Medicaid or SSI. Includes Medicaid special treatment trusts.
Gun Trust
Allows firearms — including NFA-regulated items — to be transferred to beneficiaries in compliance with federal and state regulations, avoiding legal complications for your heirs.
What a Living Trust Does Not Do
If a trust sounds like a perfect solution, it is important to remember that there are a few significant limitations. A living trust does not protect your assets from creditors collecting on lawful debts, even after your death.
It does not help you qualify for Medicaid, and can even incur transfer penalties. Assuming they are suited to your needs, you will need to set up one of three different special needs trusts to avoid these penalties.
Living trusts also have no bearing on how your income tax or estate tax is determined, and should not be confused for a living will — a trust does not define power of attorney. An experienced estate attorney can help you understand which tools are right for your situation.
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Contact Information
Phone
(708) 442-5599
[email protected]
Office
7222 W. Cermak Rd. #701
Riverside, IL 60546