What You Should Know About Wills and Living Trusts

 Posted on January 21, 2021 in Living Trust

The process of estate planning can be challenging, depending on the size and complexity of your estate and what you want done with your assets upon your death. Proper estate planning requires a level of knowledge of the various tools, methods, and strategies that are often employed. For example, it is important to understand the differences between a will and a living trust and how those differences could affect your heirs. It is also a good idea to work closely with a qualified lawyer who can provide assistance in meeting your estate planning needs.

What Is a Will?

At its most basic, a will is a legal document that allows you to specify how your assets and possessions are to be distributed. A will can also name a legal guardian for any minor children. An important characteristic of a will is that it is a revocable and amendable document that you can control until your death. It can be updated, altered, or changed to accommodate changing situations, such as the death of an heir or divorce. Keep in mind, however, that there are some major limitations with a will—particularly when it comes to the amount of control you have over your estate after your death. The tax consequences for your heirs may also be significant if your estate plan consists only of a will.

What Is a Living Trust?

Living trusts are generally more complex than wills are, but they offer you more control over your estate after death. A living trust also gives you more control over how your estate is structured prior to your death. For example, you can be the trustee of your own estate and then plan for a successor after death or incapacitation, or you can simply name another individual as the trustee from the start. Like a will, a revocable living trust can be amended, updated, or revoked for as long as the creator of the trust is alive.

Compared to a will, a living trust also provides more privacy regarding the disbursement of your estate, and, in the case of larger estates, it can reduce the tax load for your heirs. Keep in mind, however, that living trusts must be properly funded, and they can be more expensive to set up initially. Still, for those with large, complex, or potentially problematic estates, the cost of a living trust may be well worth the peace of mind the trust can provide.

Contact a Wheaton Wills and Trusts Lawyer

If you have questions about wills, trusts, or any other estate planning tool, the team at Stock, Carlson & Duff LLC is ready and willing to help you. Call 630-665-2500 to schedule a confidential consultation with one of our experienced DuPage County estate planning attorneys today. We will work with you in finding the answers you need and the security you and your family deserve.

Source:

https://www.ilga.gov/legislation/ilcs/ilcs5.asp?ActID=2104&ChapterID=60

https://www.ilga.gov/legislation/ilcs/ilcs5.asp?ActID=4001&ChapterID=61