Trusts aren't just for the wealthy anymore. If you own a home in Wilmette, have retirement accounts, or want to avoid putting your family through probate, a trust is probably the right tool.
A Wilmette, IL estate planning lawyer can help.
The problem is that most people don't understand how trusts actually work. They've heard the term. Maybe a friend mentioned setting one up. But when it comes to the details, what type you need, how to fund it properly, they're lost.
That's where we come in. At Kravets Law Group, we handle everything from basic revocable living trusts that keep estates out of probate to complex irrevocable trusts designed for asset protection and tax planning. Every trust gets drafted specifically for your situation, not pulled from a generic template.
Why Trusts Matter in Wilmette, Illinois
Trusts provide control. You can specify exactly when and how your beneficiaries receive their inheritance. You can protect assets from creditors. You can minimize estate taxes if your estate is large enough to trigger Illinois's $4 million threshold. You can ensure a special needs child maintains government benefits while still receiving financial support.
Different goals require different types of trusts, and choosing the wrong one creates problems.
Types of Trusts We Draft As Trust Lawyers in Wilmette
Revocable Living Trusts
This is what most people mean when they say "trust." You create it while you're alive. You maintain complete control. You can change it, modify it, or revoke it entirely anytime you want. You're typically the trustee while you're alive and competent, which means you manage everything exactly as you do now.
When you die, the successor trustee you named takes over and distributes assets according to your instructions. No probate. No court involvement. For Wilmette families with real estate, investment accounts, or any substantial assets, revocable living trusts are usually the foundation of a good estate plan.
The key is funding the trust properly. That means transferring ownership of your assets into the trust's name. Your house, your accounts, your investments. We handle all the funding paperwork as part of the process.
Irrevocable Trusts
Once you create an irrevocable trust and transfer assets into it, you generally can't change your mind. That sounds restrictive, and it is. But that's also what gives irrevocable trusts their power.
Because you've permanently given up control, the assets are no longer considered part of your estate for tax purposes. They're protected from most creditors. If you're concerned about asset protection or reducing estate taxes, irrevocable trusts are often the right tool.
Common types include irrevocable life insurance trusts, which keep life insurance proceeds out of your taxable estate, and grantor retained annuity trusts, which let you transfer appreciating assets to beneficiaries while minimizing gift taxes. These are more complex instruments, and you need to understand exactly what you're doing before you set one up.
Special Needs Trusts
If you have a disabled child or dependent who receives government benefits like SSI or Medicaid, a regular inheritance could disqualify them from those programs. Special needs trusts solve this problem.
The trust provides supplemental support without affecting benefit eligibility. It can pay for things government programs don't cover: therapy, education, recreation, quality of life improvements. But the trust has to be drafted carefully and administered correctly, or you risk jeopardizing benefits anyway.
We draft both third-party special needs trusts, funded by parents or other family members, and first-party special needs trusts, funded with the disabled person's own assets. The rules are different for each type, and choosing the wrong structure creates problems.
Dynasty Trusts
If you want to provide for multiple generations while minimizing estate taxes, dynasty trusts let you do that. Assets stay in the trust for your children, then your grandchildren, then your great-grandchildren. Properly structured, the trust can last for generations without triggering estate taxes at each generation.
Illinois law allows dynasty trusts to continue for a long time under the Illinois Trust Code, though there are limits. These are sophisticated planning tools that make sense primarily for families with substantial wealth who are concerned about multi-generational tax planning.
Charitable Trusts
If you want to benefit charity while also providing income for yourself or your family, charitable trusts offer tax advantages that regular gifts don't. Charitable remainder trusts pay income to you or your beneficiaries for a period of time, then the remainder goes to charity. You get a current tax deduction, the assets are removed from your taxable estate, and you avoid capital gains tax on appreciated assets you contribute.
Charitable lead trusts work in reverse. The charity receives income for a set period, then the remainder goes to your beneficiaries. These are useful for transferring assets to the next generation while reducing gift and estate taxes.
How We Draft Trusts
Every trust starts with understanding what you're trying to accomplish. Are you just trying to avoid probate? Do you have asset protection concerns? Are you worried about estate taxes? Do you have a special needs child? The answers determine what type of trust makes sense.
We draft every trust document specifically for your situation. We explain what each provision does and why it's there. We make sure you understand how the trust works, what your responsibilities are as trustee, and what happens when you die or become incapacitated.
Then we handle the funding. For real estate, that means preparing and recording new deeds. For financial accounts, that means working with your banks and investment firms to retitle accounts in the trust's name. For business interests, that means transferring ownership appropriately. If the trust isn't funded properly, it doesn't work.
We also coordinate the trust with your other estate planning documents. You still need a pour-over will to catch any assets that weren't transferred to the trust. You need powers of attorney and healthcare directives. Everything has to work together.
Illinois Trust Law
Illinois trust law is codified in the Illinois Trust Code. It governs how trusts are created, administered, and terminated. It specifies trustee duties and beneficiary rights. It determines what happens when problems arise.
For a trust to be valid in Illinois, you need a settlor (the person creating the trust), a trustee (the person managing it), and a beneficiary (the person who benefits from it). You need a clear intent to create a trust. And you need trust property - you can't have an empty trust.
Trustees have significant responsibilities under Illinois law. They have a fiduciary duty to act in the beneficiaries' best interests. They must invest trust assets prudently. They must keep accurate records and provide accountings. They can be held personally liable if they breach these duties.
The Illinois estate tax applies to estates over $4 million. Properly structured trusts can help reduce or eliminate that tax burden, though the planning has to be done while you're alive. Once you're gone, the options are limited.
Common Questions About Trusts
Do I really need a trust?
If you own real estate, have investment accounts, or have an estate worth more than a few hundred thousand dollars, a trust usually makes sense. It avoids probate, provides privacy, and gives you more control over how and when your beneficiaries inherit. For most Wilmette families, the benefits outweigh the cost.
How much does a trust cost?
We quote flat rates based on the complexity of your situation. A basic revocable living trust costs less than a complex irrevocable trust structure. At the consultation, we'll give you an exact price. Most people find that the cost of creating a trust is less than what their family would pay in probate fees and legal costs without one.
What's the difference between revocable and irrevocable?
Revocable trusts can be changed or canceled anytime. You maintain control. But the assets are still considered part of your estate for tax purposes, and they're not protected from creditors. Irrevocable trusts can't be easily changed. You give up control. But the assets are generally protected from creditors and removed from your taxable estate. Which one you need depends on your goals.
Can I be the trustee of my own trust?
For a revocable living trust, yes. Most people serve as their own trustee while they're alive and competent. You name a successor trustee who takes over when you die or become incapacitated. For irrevocable trusts, you typically can't serve as trustee because that would give you too much control and defeat the purpose of making it irrevocable.
What happens if I move to another state?
Most trusts remain valid when you move, but different states have different trust laws. If you move, you should have an attorney in your new state review your trust to make sure it still accomplishes what you want and complies with local law. Sometimes amendments are necessary.
How do I fund the trust?
We handle most of the funding as part of creating the trust. For real estate, we prepare new deeds. For financial accounts, we provide letters to your banks and investment firms. For some assets, you'll need to work directly with the institution to retitle accounts. We guide you through the entire process.
Can a trust be contested?
Yes, though it's generally harder to contest a trust than a will. Someone might claim you weren't mentally competent when you created it, that you were unduly influenced, or that the trust wasn't properly executed. Good drafting and proper execution reduce these risks significantly. If you have concerns about potential challenges, we can build additional protections into the trust.
When to Update Your Trust
Trusts aren't "set it and forget it" documents. Life changes, and your trust should change with it.
Marriage or divorce. The birth or adoption of children. The death of a beneficiary or trustee. Significant changes in your assets. Moving to another state. Changes in tax laws. These are all reasons to review and potentially amend your trust.
For revocable trusts, amendments are straightforward. For irrevocable trusts, modifications are more difficult but sometimes possible under Illinois law, depending on the circumstances and whether all interested parties agree.
We recommend reviewing your trust every three to five years, or whenever you experience a major life change.
Working With Kravets Law Group
Daniel Kravets handles every trust case personally. He's been drafting trusts for Illinois families since 2016, and he's licensed in Illinois, Pennsylvania, and New Jersey. He understands how trusts work under Illinois law and how to structure them properly for different situations.
When you work with us, you're not getting a template document. You're getting a trust drafted specifically for your assets, your family, and your goals. We explain everything in plain language. We handle all the funding paperwork. And we're available to answer questions or make updates as your circumstances change.
We offer free consultations for trust planning. We'll review your situation, explain your options, and quote exact pricing for the work. Most people find that trust planning is more straightforward and affordable than they expected.
Call today. We respond to inquiries within one business day and schedule meetings at times that work for you. If you want to avoid probate, protect your assets, or maintain control over how your beneficiaries inherit, a properly drafted trust is usually the right solution. Our Wilmette trust and estate planning lawyers can help.
