What Happens When You Create A Trust?
Creating a trust is an important step in planning for the future, but you’ll need a Chicago, IL revocable trust lawyer to walk you through the process. At Kravets Law Group, we have over a decade of experience. We’ve assisted our clients with wills, trusts, and estate planning, and we’re ready to use this experience to help you, next. Here’s what happens when you create a trust. Read on, and contact us today to get started.
Setting Up The Trust
The first part of creating a trust involves meeting with an attorney who focuses on estate planning. During this stage, you will discuss your goals with your fiduciary lawyer, including the people you want to benefit, and the property you want to include in the trust. This might involve real estate, bank accounts, investments, or other valuable assets. You will also need to choose a trustee, which is the person or organization responsible for managing the trust.
Transferring Assets To The Trust
Once the trust is created, you must transfer ownership of your chosen assets into it. This is often called “funding” the trust. For example, you might retitle a house so that it is owned by the trust rather than by you personally. Bank accounts, investment accounts, and other property can also be moved into the trust.
During your lifetime, you will usually maintain control over the assets in a revocable trust. You can add or remove property, change instructions, or even dissolve the trust entirely if your situation changes. Your trust planner can guide you through this process and help make sure everything is handled properly.
Managing The Trust While You Are Alive
While you are living, the trust operates much like your personal accounts. You can use the assets as you normally would, whether that means living in a home owned by the trust or drawing from accounts for daily expenses. You should still contact a Chicago revocable trust lawyer to make sure you’re maintaining the trust properly, though.
What Happens After You Pass Away
After your death, the trust becomes irrevocable, which means it can no longer be changed. The trustee then follows the instructions you provided to distribute the assets to your chosen beneficiaries. This process usually avoids probate, which is the court-supervised process that happens when someone dies with only a will or no estate plan at all.
Why A Trust Can Bring Peace Of Mind
A trust provides a clear plan for how your property will be managed both during your lifetime and after you are gone. It gives you control over who receives what, when they receive it, and how it is handled. This can help prevent disputes and reduce stress for loved ones during an already difficult time. Your Chicago revocable trust lawyer can help you find your next steps.
Taking The Next Step
At Kravets Law Group, we work closely with our clients to understand their goals and develop plans that fit their needs. We can also help you protect your multi-generational wealth with dynasty trusts, and establish special needs trusts for disabled beneficiaries. Contact us today, and see how a trust administration lawyer from our team can make a difference.