What Is a Lifetime Trust?Share this post
What Is a Lifetime Trust?
Des Plaines estate planning attorneys Anthony J. Madonia & Associates, Ltd. share the basics of a lifetime trust and what it does. Learn the benefits of having a lifetime trust and why you should always have a lawyer present during the creation.
What Is a Lifetime Trust?
A trust that is created within a person’s lifetime rather than having a will is a lifetime trust. It is primarily used to govern a person’s distribution of property. It may be constructed during the grantor’s lifetime and become applicable after their demise. According to Chicago IL estate planning attorney, Anthony J. Madonia & Associates, the main purpose of a lifetime trust is to protect your loved ones from creditors. This is why you need an attorney present.
What Are Some Benefits of a Lifetime Trust?
One key benefit is that it allows for the beneficiary to specify who receives their assets upon their death. With a lifetime trust, the transfer of these assets will occur without court probate. They also are not part of the beneficiary’s estate when it comes to estate taxes.
Why Set Up a Trust?
The idea behind a lifetime trust is to transfer assets to a specific person from another person. A trust is comprised of different elements such as property, possessions, and monetary assets. Having a lifetime trust is beneficial to your long term wealth management and robust estate planning.
In most cases, when there is a trust created, heirs will be able to avoid going through probate after you pass away. A lifetime trust’s primary purpose is the protection of your heirs from having your assets taken away from them.
Why Do You Need a Special Attorney?
Does creating a lifetime trust sound quite complicated? That is precisely why the creation of one needs the assistance of someone like Chicago estate planning attorneys, Anthony J. Madonia & Associates. Understanding the local and state regulations and the many options available in wealth management make an estate planning attorney critical as your plan for your future. This firm has solid experience in all manner of estate planning including lifetime trusts. Not only will they explain everything to you but see that you receive everything you are due.
How Can a Lawyer Help with Lifetime Trusts?
A living trust is a legal entity. It is advised to have a legal expert standing by to ensure nothing goes wrong. He or she should be present when you are creating the trust in the first place. That is to make certain you do everything correctly and there are no loopholes where someone can take assets away from your heirs.
Protection from Divorce Settlements
Your creditors are not the only ones who can rob your heirs of your lifetime trust if you are not careful. There are some states where inheritance is considered fair game in divorce proceedings.
If you want your designated heirs to avoid this kind of situation, the way to do it is with a skilled and experienced lawyer. Chicago IL estate planning attorneys Anthony J. Madonia & Associates will protect your designated beneficiaries from this kind of action.
While in theory a living trust can be prepared by you on your own accord, it is best to have an experienced lawyer on your side. You want someone who knows the laws in the state you reside in. The last thing you want is for the state to legally take away your trust from your heirs. A knowledgeable lawyer will prevent that from happening to your loved ones at all.
The professionals at Anthony J. Madonia & Associates know exactly what to do and can help you. It is okay if you don’t live in Chicago. They will work with you on a remote basis. If a situation calls for a personal appearance, your representative will be at your side and ready to go. Do you want to be prepared when your time of passing comes? Do you want them to respond to questions like what’s a lifetime trust? Call today!