Trusts (Revocable, Irrevocable and Special Needs Trusts)

1700 North Farnsworth Avenue, Suite 28, Aurora, IL 60505

 Patankar Law P.C.

Aurora IL Lawyers for Estate Trusts

Geneva, IL special needs trust lawyer

Kane County Estate Planning Attorneys Assisting Clients with Revocable, Irrevocable, Special Needs Trusts and Irrevocable Life Insurance Trusts

Trusts are often part of a comprehensive estate planning package, used in conjunction with other estate planning documents. A trust can give you greater control over the distribution of your assets when you die, and it can accomplish several other objectives including reducing taxes and protecting assets.

Common types of trusts are revocable trusts, irrevocable trusts, special needs trusts, and life insurance trusts. If you are considering setting up a trust, it is important to work with an experienced estate planning lawyer, so you create the right legal documents to address your unique needs.

At Patankar Law P.C., we have over five decades of combined experience assisting clients with trusts, wills, living wills, and all other estate planning needs. Our attorneys have extensive knowledge of the various types of trusts and what each is used for. We also practice several related areas of law, such as real estate law, business law, family law, and tax law. Our in-depth knowledge of these areas allows us to provide comprehensive and innovative solutions designed to accomplish your goals and fully address all known eventualities.

How Does a Trust Work?

Trusts are legal documents that hold ownership of assets. The trust is created by the grantor, the person who owns the assets being transferred into the trust. The grantor then designates himself/herself or another individual to oversee the assets and property of the trust, and manage their distribution. This person is known as the trustee. The recipients of the assets and property from the trust are known as the beneficiaries. The beneficiaries receive distributions according to the terms and conditions spelled out in the document.

Living Trusts

A living trust becomes effective during the lifetime of the grantor. This is the most common type of trust, and it can be revocable or irrevocable.

  • Revocable Living Trusts: This type of trust can be revoked during the lifetime of the grantor, but becomes irrevocable upon his or her death. Revocable living trusts are commonly used to avoid probate, maintain the privacy of the estate, and allow for immediate distribution of property and assets upon the grantor's death.
  • Irrevocable Living Trusts: Irrevocable trusts are permanent and cannot be altered once they are set up. They are commonly used to protect assets from abusive family members, transfer wealth to the correct beneficiaries, and reduce estate taxes.

Special Needs Trusts

For families with minor or adult children with disabilities, a special needs trust can be a useful tool to allow the beneficiary to receive property and assets while ensuring that they will continue to qualify for essential government benefits. Special needs trusts can be revocable or irrevocable, and certain rules must be followed to ensure that the trust is valid.

Irrevocable Life Insurance Trust

For individuals with life insurance policies who would like to reduce their exposure to estate taxes, protection from creditors, while also taking care of their loved ones, can choose to do a Irrevocable Life Insurance Trust. Once completed, the trust will own the insurance policy and be the beneficiary of the policy. Once the insured passes, the trust will hold the proceeds, and the trustee will preserve and administer the trust assets to make sure beneficiaries of the trust receive their share. Make sure to establish an Irrevocable Life Insurance Trust least three years before the insured's date of death, otherwise, the transfer of the life insurance policy will not be recognized by the Internal Revenue Service as timely for tax purposes, but would still protect the insurance proceeds from the insureds general creditors.

Speak with an Experienced Aurora Trusts Attorney

Trusts are complicated estate planning instruments that can accomplish many important objectives. However, they must be worded carefully to ensure that the needs and goals of the grantor are fully addressed. At Patankar Law P.C., we take the time to listen and get to know each client, so we can thoroughly understand what they are trying to accomplish and formulate the most effective estate planning strategies to get them there. For skilled guidance with revocable, irrevocable, special needs, or any other type of trust, contact our office today at 630-820-8877. From our office in Aurora, Illinois we serve clients throughout Kane County including Batavia, Geneva, St. Charles, Elgin, Warrenville, West Chicago, Naperville, Lisle, Oswego, Yorkville, and Montgomery.

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