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Trust vs. Will or How a Trust Works
A trust is an estate planning tool that can be used to protect assets and control distribution. Trusts can be beneficial in a variety of situations and assets that are held in a trust are not subject to probate upon a person’s death. To learn more about trusts and how a trust can benefit your estate, contact the Chicago estate plan attorneys at Anthony J. Madonia & Associates.
How a trust works
A trust is a legal instrument that holds assets and income for the benefit of another. The person(s) who create the trust are called the grantors. The grantors transfer certain property and assets to a trustee, who holds the property in the trust for the benefit of others (the beneficiaries).
A trust can be created during a person’s lifetime and control what happens with the property held in trust during your life and upon your death. A trust may also be created at the time of your death to distribute or otherwise hold assets according to your wishes.
When property is held in a trust, it is protected against personal creditors. Trust property is held in accordance with the terms of the trust agreement. The trustee is required to manage the assets as directed by the language of the trust agreement.
A trust can be a useful way to protect assets and delay distribution to your heirs. Trusts may also have certain financial and tax benefits. If property is held in trust, then probate is not necessary for this property. This protects your privacy and can be less costly.
How can an attorney help?
Chicago estate plan attorneys can help you understand how a trust can benefit your situation. We will discuss with you the different options and help you develop a comprehensive estate plan. Contact Anthony J. Madonia & Associates to learn more about how we can help.