Trusts are popular estate planning tools, and different kinds of trusts have different purposes and benefits. The following is a brief overview of types of trusts – to discuss the best kind for your specific situation, you should consult with an experienced estate planning lawyer in Illinois.
Revocable Living Trust – This is a trust that you can manage while you are living and mentally capable of doing so. You can access your trust property at any time and also make changes to the terms of the trust or revoke the trust entirely at any point. This is the most common type of trust.
Irrevocable Trust – This type of trust cannot be changed or revoked once it is created, and you cannot access or use the trust property once it is transferred. This is commonly used to hold life insurance or for other rarer circumstances.
Special Needs Trust – This trust arrangement allows you to leave funds to support an adult with special needs without jeopardizing their eligibility for public benefits, such as Medicare or disability benefits. The trustee must use the funds for specific purposes to benefit the disabled adult.
Spendthrift Trust – This type of trust allows you to shield the assets and property from any creditors of your beneficiaries.
Charitable Trust – These trusts benefit a charitable organization of your choice and can work to limit estate tax liability. Another form is called the charitable remainder trust.
Contact a Trust and Estates Lawyer in Illinois Today
There are additional types of trusts available than those mentioned above, and an experienced Illinois estate planning attorney can advise you if creating a trust is right for your situation. To consult with attorney Charles T. Newland about your estate plan, please do not wait to call 847.797.9300 or contact us online to set up your appointment.