Most Wilmette homeowners don't realize their estate may go through probate unless they take specific steps to avoid it.
Revocable living trusts are the most effective way to keep your estate out of probate court. When properly funded, they allow your assets to pass directly to your beneficiaries without court involvement, delays, or public records.
At Kravets Law Group, we've been creating revocable trusts for Illinois families since 2016. We draft the trust document, handle all the funding paperwork, and make sure your estate plan actually works when your family needs it.
What Is a Revocable Living Trust?
A revocable living trust is a legal entity you create during your lifetime to hold your assets. You transfer ownership of your property into the trust's name. You serve as trustee, maintaining complete control. You can buy, sell, or mortgage property. You can change or revoke the trust anytime.
When you die, your named successor trustee distributes assets according to your instructions. No probate. No court oversight. No public record.
Why Revocable Trusts Matter in Wilmette
Illinois probate takes time and money. The probate process in Cook County typically runs six to twelve months. Your family can't access assets during that time without court permission. Everything becomes public record. Legal fees accumulate throughout.
Revocable trusts avoid all of this, and a good Wilmette estate planning lawyer can help. Assets pass immediately to beneficiaries. Private. Efficient. No court involvement.
Trusts also provide control that wills can't match. You can specify exactly when beneficiaries receive their inheritance. At certain ages. After completing education. In installments over time. You can protect a beneficiary with substance abuse issues by giving the trustee discretion over distributions.
For blended families, trusts offer precision. You can ensure your spouse is provided for during their lifetime, then have remaining assets pass to your children from a previous marriage.
If you own property in multiple states, trusts prevent multiple probate proceedings. One trust can hold real estate in Illinois, Wisconsin, and Florida. The successor trustee handles everything without filing separate probate cases in each state.
Funding Your Revocable Trust
Creating the trust document is only half the work. The trust must be funded to be effective. Funding means transferring asset ownership from your name to the trust's name.
Real Estate
We prepare new deeds transferring your property to the trust. The deed gets recorded with the county recorder's office. Your mortgage doesn't change. Federal law prohibits lenders from calling a loan due when you transfer your residence to a revocable trust. Property taxes don't change either.
Financial Accounts
Banks and investment firms have procedures for retitling accounts into trust names. We provide letters explaining what's needed. Most institutions are familiar with the process.
Business Interests
If you own a business, transferring ownership to your trust requires careful consideration. For sole proprietorships, it's straightforward. For partnerships, LLCs, or corporations, we review operating agreements and bylaws to ensure transfers are permitted.
Personal Property
Vehicles, boats, and other titled property get retitled in the trust's name. For personal items like jewelry, art, and household goods, the trust document includes a schedule or assignment that transfers these items without separate title documents.
Wilmette Revocable Trusts vs. Wills
A properly funded trust avoids probate entirely. Assets pass directly to beneficiaries according to your instructions. Private. Immediate. No court required.
Wills also provide less control. They distribute assets outright to beneficiaries at death. Trusts can include detailed distribution schedules, conditions, and protections that continue after your death.
However, you still need a will even with a trust. The will serves as a backup, catching any assets that weren't transferred to the trust. This "pour-over will" directs those assets into your trust through probate.
Trust Administration After Death
When you die in Wilmette, your successor trustee has specific responsibilities under the Illinois Trust Code.
They must notify beneficiaries about the trust. They must inventory trust assets and determine values. They must pay final debts, expenses, and taxes. They must distribute assets according to the trust's terms.
If your estate exceeds Illinois's $4 million threshold, the trustee must file an Illinois estate tax return within nine months of death.
Trust administration is simpler than probate administration, but it still requires attention to legal and fiduciary duties.
Common Questions About Wilmette, IL Revocable Trusts
Can I still refinance my house?
Yes. When you refinance, most lenders require you to temporarily transfer the property out of the trust, complete the refinancing, then transfer it back. We handle this paperwork routinely.
Does a trust affect my taxes while I'm alive?
No. For tax purposes, revocable trusts are ignored during your lifetime. You report all income and deductions on your personal tax return. No separate trust tax return is required.
Can creditors still reach my assets?
Yes. Revocable trusts don't provide asset protection during your lifetime. Since you maintain complete control, creditors can reach trust assets to satisfy your debts. If you need asset protection, you need an irrevocable trust.
What if I move to another state?
Most revocable trusts remain valid when you move. However, you should have an attorney in your new state review the trust to ensure it complies with local law. Sometimes amendments are necessary.
How often should I update my trust?
Review your trust every three to five years, or whenever you experience major life changes. Marriage, divorce, births, deaths, significant asset changes, moves to other states.
Revocable Trusts vs. Irrevocable Trusts
Revocable trusts and irrevocable trusts serve different purposes. Revocable trusts provide probate avoidance and control. Irrevocable trusts provide asset protection and tax benefits.
With a revocable trust, you maintain control but assets remain in your taxable estate and accessible to creditors. With an irrevocable trust, you give up control but assets are removed from your taxable estate and generally protected from creditors.
Most people start with revocable trusts. They provide the flexibility and control most families need. Irrevocable trusts make sense for specific situations: significant wealth requiring estate tax planning, asset protection concerns, or special needs planning.
Working With Kravets Law Group
We've been drafting revocable trusts for Wilmette families for years – we understand how they work under Illinois law and how to structure them properly for different situations.
When you work with us, we draft your trust document specifically for your situation. Not a template. We explain each provision and why it's included. We handle all the funding paperwork: deeds for real estate, letters for financial institutions, assignments for personal property.
We also prepare your pour-over will, powers of attorney, and healthcare directives. Everything works together as a complete estate plan.
We charge flat fees for most revocable trust planning, quoted upfront based on your situation's complexity. Many people find that creating a trust costs less than what their family would pay in probate fees and legal costs without one.
If you own a home in Wilmette, have substantial assets, or want to avoid putting your family through probate, call us. We offer free consultations. We'll review your situation, explain whether a revocable trust makes sense for you, and quote our fees. Creating a trust is one of the most important steps you can take to protect your family.
