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Plano Illinois Estate Planning Lawyer: Protecting Your Assets & Bringing Peace of Mind to You

 Posted on January 10, 2023 in Estate Planning

Plano Illinois Estate Planning Attorney

Estate Planning is the process of planning one’s financial, retirement, and estate planning solutions to transfer one’s assets to their loved ones in a cost-effective and smooth manner. People often are concerned about their portfolio and how the market negatively effects their assets. 

Asset protection is a legal specialty, which combines diversifying one’s assets to maximize their protection from events that dissipate their assets. Asset protection involves advanced planning prior to lawsuits, taxes, and life events negatively impacting one’s economic security and wealth. Asset protection and estate planning together combine effective wealth management solutions to promote financial security.

 

Traits of Estate Planning

Trusts are part of the solution to effective estate planning. These legal documents compromise the key elements of a successful estate plan:

  • Revocable Living Trust or otherwise known as a “Living Trust’

  • Pour Over Will

  • Powers of Attorney for Finances

  • Powers of Attorney for Medical Decision-Making

The above documents help build a solid financial and legal structure. A solid financial and legal structure are important because your economic security is enhanced. A Living Trust is revocable and is like a will. A living trust and a will distribute your assets consistent with your wishes. 

Unlike a will, a Living Trust avoids probate court. Probate court is a court that oversees the distribution and facilitation of one’s assets to their heirs and family members. Probate court involves a court process where a will is administered and admitted into court. In contrasts, a living trust transfers one’s assets outside of the scrutiny and disclosure of the court system. A living trust passes assets and financial accounts according to a written agreement called a “trust agreement.”

 

Living Trust and Trust Agreement

A Trust Agreement is a written legal document, which outlines your wishes upon incapacity,

Trust Agreement consists of the following:

  • Appoints a Trustee and Successor Trustee(s) to govern and manage the assets of the Trust

  • Creates a contingency plan where a Successor Trustee is appointed in case of an emergency and incapacity to avoid guardianship court

  • Outlines the distribution of one’s assets and allows the creator of the trust to control and protect their family members, heirs, and friends in a manner that protects them

  • The spendthrift provision protects a beneficiary’s assets against creditor claims such as divorcing spouses and creditors of the beneficiaries

  • Enables the creators of the trust to amend or revoke their trust to modify it to honor their wishes and legacy

  • Avoids probate court and is a private document. Unlike a will, a living trust does not get filed at the local courthouse nor require court proceedings if the trust is properly funded

  • Outlines the powers and responsibilities of the trustees such as the power to refinance mortgages, sell property, and manage financial assets among other things

  • Provides financial flexibility to protect a beneficiary in case of a disability

  • Works with family members to set-up a special needs trust and provisions to protects disabled adults when appropriate

  • Outlines a process and sets up a children’s trust to govern and protect children’s assets and allow children to wreak the benefit of their inheritance at various stages of life. This protects the beneficiary’s inheritance from irresponsibility and youth when appropriate

A trust is created by a person or entity called a grantor. A grantor is a person that creates a written agreement called a trust and appoints a trustee to manage the property of the trust. There are several diverse types of trusts. These types of trusts consist of two major categories. The first category is revocable trust. A revocable trust is a trust that may be amended or revoked. An irrevocable trust is the second type of trust. An irrevocable trust is irrevocable and may not be amended or changed. The basic difference in the two is control. With an irrevocable trust, the person or entity that created the trust cannot have control over those assets any longer. Irrevocable trusts are used to maximize asset protection and protect one’s assets. An example of an irrevocable trust is a Medicaid Trust or Irrevocable Life Insurance Trust. The basic reason behind irrevocable trust is tax planning or protection on one’s assets.

 

Healthcare and Life Decision-Making

Estate planning involves non-financial decisions such as appointing a person to make healthcare decisions for themselves. In Illinois, advanced healthcare directives outline a person’s desire for how they want their end of life decision-making to go. A person appoints an “agent,” which is the person responsible for making health-related decisions for a person. It is a clever idea to appoint “successor agents” and “alternate successor agents.” Appointing successor agents is important as a contingency plan because well-placed plans have a back-up. Successor agents providing a back-up to insure against death, unavailability, or other reasons the agent or successor agent may not be available when an emergency arises.

 

A person should have an open and frank conversation about the risks and thoughts related to advanced healthcare directives. Here at Peace of Mind Asset Protection, LLC, we partner with individuals and couples to devise well-thought out and precise estate and asset protection plans.

 

Financial Plan Protection and Disability Planning

The second type of power of attorney is a power of attorney over finances. A power of attorney for finances appoints an agent to make financial-related decisions when a person is unavailable or needs assistance. The purpose behind a financial power of attorney is to give a person freedom and assistance when they need to without government involvement. An incapacity without a power of attorney for property often leads to guardianship court, which is a sub-section of probate court. Guardianship court is a court which supervises and determines who should make financial decisions when they are incapable of making their own-informed decisions. Guardianship court is intrusive and financial decisions often are not made without the consent and supervision of a judge. In summary, a financial power of attorney is a financial tool that protects one’s aspects and life from government intrusion and control over one’s life.

 

Plano Illinois Estate Planning Attorney: Building Wealth and Providing Financial Peace One Person at A Time

Legacy planning and estate planning lead one’s relatives to have peace of mind when one dies or becomes incapable of managing their own finances. Building a successful estate plan, which has a solid foundation is critical. Peace of Mind Asset Protection, LLC provides peace of mind and protection of one’s assets in case of a disability or incapacity. Call us at 630-882-2467.

 

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