Illinois Living Trusts: What You Should Know About Them

 Posted on May 28, 2025 in Estate Planning

When it comes to estate planning, many people in Illinois opt for a living trust. This type of trust allows you to manage your property during your lifetime, and then it transfers ownership to your beneficiaries after you die. If you're thinking about creating a living trust, here are a few things you should know:

1. Control: The grantor of a living trust can remain in control of the trust assets during their lifetime.

2. Privacy: A living trust is a private document, unlike a will which is a public record.

3. Estate Taxes: A living trust can help reduce or avoid estate taxes.

4. Probate: A living trust avoids the time and expense of probate.

5. Management: A living trust may help you manage your property during your lifetime.

6. Supervision: A living trust provides some supervision of the trust assets after the grantor's death.

7. Beneficiaries: The beneficiaries of a living trust can be changed at any time.

8. Flexibility: A living trust can be amended or revoked at any time.

9. Creditors: A living trust can help you protect your assets from creditors.

10. Intestate: Illinois living trusts can remain in effect even if the trustor dies without a will.

Given the above, it’s easy to understand why living trusts are one of the most popular estate planning tools in Illinois. For more information about living trusts and other estate planning techniques, please connect with the Illinois trust attorney at The Livingston Law Office.

What Is a Living Trust?

A living trust is a legal document that allows you to manage your property during your lifetime and distribute it to your heirs after you die. A living trust is created by transferring assets, such as property or money, into a trust account. You can remain in control of the assets while they are in the trust account, and you can use them however you wish. After you die, the assets in the trust account will be distributed according to the terms of the trust agreement.

There are several steps involved in creating a living trust, including naming the trust, selecting a trustee, and transferring your property to the trust. You will need an attorney to help with outlining the terms of the agreement and ensuring that the living trust is legally valid and legally binding both now and in the future.

How To Fund a Living Trust

A living trust can be funded in a variety of ways. The most common way to fund a living trust is by transferring assets into the trust. This can be done by retitling assets into the name of the trust, or, by making a gift of assets to the trust. Another way to fund a living trust is to create a life insurance policy that names the trust as the beneficiary. The death benefit from the policy will be paid to the trust upon the death of the insured.

The grantor may also choose to name the trust as the beneficiary of passive earnings, such as a retirement or pension account.

Need To Get Started?

Illinois living trusts are a great way to protect your assets and provide for your loved ones after you expire. But, be sure to speak with an estate planning attorney at The Livingston Law Office to make sure it's the right fit for you.

You can contact one of our expert trust attorneys at 847-544-6657 if you are interested in creating a living trust. We will be happy to help you get started with creating the required documents and then transferring your assets into the trust.