Why Seniors and Retirees Need a Living Trust, Not Just a Will

 Posted on June 14, 2025 in Estate Planning

As a firm with a trusted Oswego estate planning attorney for seniors, retirees, and their families, we often meet people who think a will is all they need to protect their assets. But for older adults, a will may not be enough, especially when it comes to planning for long-term care, avoiding probate, and making sure your family is taken care of.

A Living Trust offers more control, more privacy, and better protection than a basic will. In this article, we will explain how a Living Trust works and why it is a smart choice for seniors and families in Plainfield and Will County.

What is the Difference Between a Will and Living Trust?

A Last Will and Testament is a legal document that outlines who should receive your assets after you pass away. But a will:

• Must go through probate, which is a public and potentially expensive court process.

• Offers no protection if you become incapacitated.

• Distributes assets outright, which may not be ideal for financially immature or vulnerable beneficiaries.

In contrast, a Revocable Living Trust allows you to:

• Avoid probate court, saving your family time, money, and stress.

• Plan for incapacity by naming a successor trustee.

• Protect your beneficiaries by holding assets in trust rather than distributing them outright.

Protecting Against Long-Term Care Costs with a Living Trust

One of the greatest financial threats retirees and seniors face is the cost of long-term care, which can easily exceed $80,000 per year in Illinois. This is where a Living Trust, combined with proper legal planning, can make a significant difference. It can be used to structure assets in a way that supports future Medicaid eligibility, as long as the planning is done in advance.

A trust can also offer important spousal protections, helping to avoid financial hardship if one spouse requires long-term care. Additionally, it can reduce the likelihood of disruption to the lives of adult children or other caregivers who may otherwise need to step in unexpectedly.

Outright Distribution vs. Legacy Protection

Distributing assets directly to a child or grandchild through a will might seem straightforward, but it can lead to serious unintended consequences. For example, an inheritance may be lost in a divorce or bankruptcy, or it could jeopardize government benefits for a disabled or special needs heir. Beneficiaries might also mismanage or quickly spend the funds.

A Living Trust helps address these risks by including sub-trusts or "continuing trusts" that delay or stagger distributions based on age or life milestones, provide oversight to protect assets from creditors or former spouses, and ensure the funds are used for meaningful purposes such as education, healthcare, or long-term support.

The Importance of Powers of Attorney and Advanced Healthcare Directives

In addition to your Living Trust, a comprehensive estate plan should include Powers of Attorney for Property and Healthcare, along with a Living Will.
These documents are essential for planning during your lifetime, not just after your death.

• A Power of Attorney for Property lets someone you trust handle financial matters if you become incapacitated.

• A Power of Attorney for Healthcare allows someone to make medical decisions on your behalf when you cannot.

• A Living Will states your preferences regarding life-sustaining treatments and end-of-life care.

Together, these documents ensure your wishes are respected and your loved ones are empowered to act on your behalf without court involvement or confusion.

Call a Yorkville, IL Estate Planning Lawyer Now

At Gateville Law Firm, we believe estate planning is more than just transferring property. It is about protecting the people you love and creating a lasting legacy. Our Oswego, IL estate planning attorney for seniors, retirees, and their families crafts living trusts that meet our clients’ needs, avoid probate, and protect loved ones from risk.

Call us today at 630-780-1034 or check out our website for additional blogs explaining estate planning law.