Joliet, Illinois Estate Planning Lawyers

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Some people may feel like they are not ready to embark on the estate planning journey because they do not expect to die for many years. However, an estate plan can address much more than what will happen after a person's death. A person can take steps to ensure that their family's needs will be met in the future, including in unexpected situations like serious illnesses, as well as in a person's later years. Without proper planning, a family may not have the tools in place to make decisions about medical care and manage assets, and money could be lost because of taxes or other issues.

At Newland & Newland, LLP, our lawyers can help families address all of these issues and understand what goes into a comprehensive estate plan. We take time to learn about our clients' families, their assets, and their priorities to ensure that we can recommend the best strategies. We will make sure to explain the available options in plain language so our clients can make informed decisions and address specific concerns that may affect their families. Our goal is to provide the assurance and security our clients need.

Living Trusts

One of the most powerful tools that can be used in an estate plan is a living trust. A person and family can create legal documentation that will transfer ownership of certain assets to a trust, while providing instructions for how these assets will be distributed to different beneficiaries in the future. A trust is managed by a trustee, and with a living trust, the creator will usually be able to serve as the trustee, ensuring that they will maintain control over how the assets will be used.

When you create a living trust and serve as the trustee, you continue to manage your assets just as you did before. You can buy and sell property, manage financial accounts, and make changes to the trust at any time. After your death or in any other situation where you cannot manage your financial affairs due to incapacitation, a successor trustee that you have selected will take over control of the trust, and they will be required to follow your instructions when distributing assets.

Funding a Living Trust

A trust must be properly funded to ensure that assets can be protected, managed, and distributed by the trustee. When funding a living trust, you will retitle assets such as real estate, bank accounts, and other property, listing the trust as the owner. Our lawyers can guide you through this process, including preparing deeds for real estate property, working with financial institutions to update account ownership, and assigning business interests or other assets to the trust.

Avoiding Probate

One of the primary reasons to use a living trust is to keep your estate out of probate. The probate process is followed after a person's death, and it will involve a complete inventory of the person's assets, the payment of debts and taxes, and the distribution of assets to beneficiaries. When assets are held in a living trust, they will not be part of your estate, so they can be distributed to beneficiaries outside of the probate process. This can help save time, avoid expenses, and keep information about assets and asset distribution private.

Planning for Incapacity

A living trust can also provide numerous benefits during your lifetime. You may be a beneficiary of the trust, allowing you to use assets as needed, such as to pay for the expenses of long-term care as you get older. If incapacitation occurs because of an illness or injury, or simply because of aging, the successor trustee that you have named can take control of the trust and its assets. They will be able to handle financial issues and continue paying expenses, without the need to go through the process of establishing guardianship in court.

Special Needs Trusts

In cases where a person has a physical disability or cognitive impairments, some of the standard steps taken during estate planning and inheritance planning can create serious problems. The government benefits a person receives through programs like Medicaid and Supplemental Security Income (SSI) will usually only be available if they own limited assets. If a disabled person receives an inheritance or gift, they may lose eligibility for these programs.

Special needs trusts can prevent the loss of benefits by holding assets on behalf of a person with a disability. Since the assets will be owned by the trust, they will not be considered when determining whether a person is eligible for benefits. The assets in the trust can be used for specific purposes that are not addressed by government benefits, including to pay for transportation, recreational activities, and technology like computers or cell phones.

Using Trusts for Asset Protection

One of the most important aspects of an estate plan is the steps that may be taken to protect against the loss of assets due to issues such as creditor claims and lawsuits. A revocable living trust may not protect assets from creditors, because a person will continue to have control over their assets. However, other types of trusts can provide protection.

When assets are transferred to an irrevocable trust, a person will give up direct control of those assets. In exchange, assets may be placed out of the reach of creditors and protectid from other issues that could result in losses. Our attorneys can provide guidance on when and how irrevocable trusts and other methods can be used to shield assets and make sure as much as possible can be passed on to future generations.

Wills

Even when a living trust is the centerpiece of an estate plan, it is important to create a will. Some assets may not be transferred into a trust, so instructions will need to be left for how these assets will be handled after a person's death. A will can also designate a person who should serve as the guardian of minor children after parents pass away.

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Contact Our Joliet, IL Estate Planning Attorneys

At Newland & Newland, LLP, we work with clients to put thoughtful estate plans in place, making sure their needs will be addressed and helping them take the right steps to achieve their goals for their families. Do not wait for a crisis to start planning. Contact our Joliet estate planning lawyers today at 815-620-0546 to arrange a free consultation.