Irrevocable Living Trust-What is it?

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irrevocable living trust

Learn more about types of trusts

When it comes to estate planning in Chicago IL, as with other cities and states, there are tons of complex laws, paperwork, and other regulations to follow. This sentiment is true when it comes to creating irrevocable living trusts.

Working with a reputable Chicago estate planning lawyer is the key to handling all paperwork and legalities as you design your estate plan. An estate planning attorney will save you lots of money in the long run as well as eliminate possible trust contesting.

What is an Irrevocable Living Trust?

An irrevocable living trust is a trust that is made and becomes effective during the lifetime of the trust grantor. With a few exceptions, it can’t be terminated or altered. These exceptions include rare situations as well as, the trust beneficiary’s permission.

There are various kinds of irrevocable trusts that are used for different purposes. The main reasons why an irrevocable living trust is created include reducing taxes and protecting assets. You can also establish an irrevocable trust to ensure full protection of funds and no misuse of the funds.

What Does Irrevocable Living Trust Cover?

The individual who creates the trust is called the grantor, settlor, or trustee. This person uses a document called a trust agreement that establishes the trust. The grantor chooses the beneficiaries, and a trustee to manage the trust. Additionally, any property that is used to fund the trust, and the trust assets will eventually be distributed as the trust document states. The trustee may be a spouse, children, friends, or family member, but not the grantor. Life insurance is also part of a strong estate plan

Irrevocable living trusts are intended for the peace of mind of the grantor. Benefits of the trust are awarded to the grantor’s loved ones as he/she chooses as beneficiaries and/or entities. An entity could be a beloved non-profit organization of the grantor that he/she may choose.

What are the Benefits?

There are several benefits of irrevocable living trusts. The main benefits include the following:

  • Being a high-net-worth individual, you can minimize your taxes, such as income tax, and estate and gift tax.
  • If you have a dependent or child who has a disability, you may help them qualify for government assistance.
  • If you work in a profession where you are liable to get sued, you can gain asset protection through this.

 How An Attorney Can Help

Chicago IL estate planning can be complex and overwhelming. There are several advantages to an irrevocable living trust setup. However, it requires an experienced attorney’s assistance who fully comprehends Chicago Illinois estate planning law and may ensure that your wishes are legally and officially made. An attorney may assist you with understanding the benefits and consequences of an irrevocable living trust setup.

By working with highly skilled and experienced legal representation for your estate planning needs, you can avoid costly mistakes for you and your family. Working with such a caliber of legal representation will ensure you’ll have all the benefits of your living trust. You will also limit the risks of a possible, contested trust.

For more information about irrevocable living trusts, contact Anthony J. Madonia & Associates today. Since 1995, these Chicago estate planning attorneys have been providing legal services. As a result, they have been recognized by several prestigious organizations for their outstanding legal representation.

This said, why trust any random estate planning attorney in Chicago? It will behoove you to ensure you work with only the best to ensure your irrevocable living trust is intact So, contact them today!