The Hoffman Estates trust attorneys practice in estate planning and drafting wills, trusts, and POA’s in Hoffman Estates and Schaumburg. What are some of the key terminology used by estate planners and trust attorneys?
What is a trust?
- in estate planning terms a trust in the most simple terms is the written agreement appointing a individual or entity to hold and control property pursuant to the terms of a written trust document
What is a grantor?
- a grantor or settlor is the person who creates the trust
What is a trustee?
- a trustee is the person or entity appointed to administer the terms of the trust and carry out its purpose for the beneficiaries of the trust
- a trustee is a fiduciary and has fiduciary obligations to the beneficiaries of the trust
What is a beneficiary?
- a beneficiary in estate planning terminology is the person or entity that receives income or distributions pursuant to the terms of the trust
In estate planning in Hoffman Estates and Schaumburg and throughout Illinois there are many different forms of trusts that can be created.
In Hoffman Estates and Schaumburg the most common trust that attorneys create is the revocable living trust. What is a revocable living trust?
- a revocable living trust is created when the settlor or grantor is alive
- the living trust or revocable trust is most often used to manage property during the grantor’s life
- the agreement sets forth the terms of property management and distribution and the powers and responsibilities that a trustee has
- can be amended and revoked by the grantor
- this is usually created by estate planning attorneys or trust attorneys
- the trust identifies the trustee and the beneficiaries of the trust
- most popular form of trust created in Hoffman Estates and Schaumburg estate planning
- an advantage to the living trust is the ease of utilizing the trust and comprehensiveness of a well planned trust agreement
- the ability to avoid the costs and expenses of probate
- the privacy that a trust agreement can provide the grantor and the beneficiaries
What are some other trust agreements that are used by attorneys in Hoffman Estates and Schaumburg?
Illinois Land Trust
- a land trust is not a trust like the living trust
- an Illinois Land Trust whether created in Hoffman Estates or Schaumburg is an entity that takes title to a piece of real property
- the entity controls the property pursuant to the terms of an agreement for the benefit of the beneficiary who is oftentimes the creator of the land trust.
- the main advantage to a land trust is anonymity and privacy and avoidance of probate
- in Schaumburg and Hoffman Estates irrevocable trusts are similar to revocable living trusts but as opposed to a revocable trust an irrevocable trust cannot be revoked
- the main advantage for an irrevocable trust is that assets are not treated for purpose of Medicaid and creditors in the same way as those in a revocable trust
- an irrevocable trust is most often used by Schaumburg and Hoffman Estates trust attorneys to shield assets from creditors and ensure that the assets are not included in an asset valuation for Medicaid purposes
- an irrevocable trust can be critical tool in Hoffman Estates and Schaumburg estate planning
Other Hoffman estates trusts and attorneys may use include life insurance trusts, self settled supplemental needs trust, third party supplemental needs trusts, testamentary trusts, and charitable trusts.
Contact the attorneys at Kelley, Kelley & Kelley to speak with an estate planning attorney who can set up a consultation to discuss how the Hoffman Estates and Schaumburg estate planning attorneys can help you achieve your goals and realize cost savings.