When you are considering an estate plan, it’s advisable to do considerable research before landing on a plan that works for you. An estate plan has many moving parts, all of which are working toward the goal of leaving something behind for your loved ones. You may want to include a last will and testament, as well as a living trust, depending on your estate planning needs. Living trust vs. will in Illinois is a debate you may have to consider in your planning.
As you think about what you want in your estate plan, you may want to enlist the help of an Illinois trust lawyer or wills attorney who can walk you through your options. Illinois’s trust laws can be complicated if you’ve never had to navigate them before, and you don’t want your estate plan to be compromised in any way. Our firm can bring decades of focused experience and dedication to your case. You should hire a wills lawyer to help you develop a plan.
Living Trust vs. Will in Illinois
Both a living trust and a will offer substantial protection for your assets in the event of your death, as long as you set everything up correctly with a lawyer’s help. Generally, a living trust grants more protection if you want to avoid probate, but a will may be the only way you can appoint your own guardian for your minor children. There’s nothing wrong with having both to create a comprehensive plan. A recent poll showed that only 32% of Americans have a will.
The median household income in Illinois is $83,390 per year, while the median sale price of the average home is $327,918. These may be considered substantial assets when deciding what to include in your will or your trust. The primary difference between the two is how your estate is handled after your death. A will goes through probate, and a trust does not, among other differences. Here are some of the most important differences to consider:
- Probate. The most substantial difference between a will and a trust is the probate process. If your estate is worth a significant amount or includes real estate, it generally goes through probate, which can be a slow and expensive process. However, if your estate is in a living trust, it bypasses probate completely. Your trustee can distribute your assets almost immediately if they wish.
- Privacy. When a will goes through probate, it becomes part of the public record. Anyone can look up the details of your assets, the inheritance, and who benefited from your estate. A trust, however, is a private agreement that stays completely confidential outside of those involved. It never enters the public eye. Privacy may be very important to you and your assets, which is understandable. A lawyer can maintain that privacy.
- Incapacity planning. It is important to keep in mind that the provisions of a will only take effect after you pass away. It doesn’t provide any provisions for what should happen if you become mentally or physically incapacitated, unless you also have separate Power of Attorney documents. A living will does allow you to designate a successor who can manage your assets if you are incapacitated.
- Guardianship. In Illinois, a will is the only legal document where you can choose a guardian to look after your minor children if you pass away. A living trust is solely for asset management and cannot be used to name a guardian. If you die without a will, the state dictates what happens to your children, and they appoint a guardian.
- Cost. Generally, a will costs much less to draft than a living trust. Trusts are much more complex, but they can save your heirs time and money in the long run.
FAQs About Living Trust vs. Will in Illinois: Key Differences
Is It Better to Have a Will or a Trust in Illinois?
Both a will and a trust provide different needs for different people. Depending on how you want your assets distributed and what you need for your family, both options may be valid for you. A will is much more public than a trust, but a trust provides considerably more asset protection and lets your family avoid probate court. It’s up to you to decide which one to draft, but you may want to consider using both.
What Is a Revocable Living Trust?
A revocable living trust is a trust that you create during your lifetime that you can modify, amend, or even revoke at any time you want, provided you are alive and mentally competent. You remain in total control of a revocable living trust. Upon your death, a trustee that you name manages the assets and distributes them in accordance with your wishes, avoiding probate court in the process.
What Is the Downside of a Living Trust in Illinois?
The main downside of a living trust in Illinois is generally the cost. Setting up a trust tends to be much more expensive than drafting a will. Additionally, you need to make sure that you actively transfer your assets into the trust. Any asset you forget to retitle may still have to go through probate. A living trust does not offer much asset protection while you’re alive.
Is It Wise to Put Your House in a Living Trust?
Yes, putting your house in a living trust can be considered wise. It allows your family to avoid probate court, which can be expensive and lengthy. If your trust is revocable, you can maintain control over the property while you’re alive. You can refinance, modify the property, or even choose to sell it if you wish. Putting your house in a living trust simply gives your family more control over the asset upon your death.
Be Sure to Hire a Will Lawyer Soon
When you are establishing an estate plan, it’s important to weigh all of your options. Wills and trusts may both have elements that you want in your plan, and it’s perfectly fine to include both. At Nowling Law, LLC, we can help you decide what works for you and make sure you don’t get taken advantage of. Contact us to speak with a member of our team about what we can do for you.