Yorkville, Illinois Trust Funding Attorneys for Seniors

Lawyers Helping Seniors and Retirees Establish and Fund Trusts in Yorkville

During the estate planning process, different types of trusts may be used for a variety of purposes. Trusts can help to protect assets, cover certain types of expenses, and streamline the process of passing property to beneficiaries. While some people may believe that signing a trust document will protect their assets and provide for their family, a trust can only work as intended if it is properly funded. Assets will need to be retitled or transferred into a trust. Without the proper funding, a trust will be little more than a plan on paper.

At Gateville Law Firm, our attorneys help seniors and their families complete the essential step of funding trusts. We work with clients to make sure their trusts will function exactly as intended. This is an issue that is often overlooked during the estate planning process. Without proper funding, families may discover that assets will be subject to probate or that the trust will not provide the protection or benefits it was designed to address. With our help, families can avoid this issue and make sure they are fully prepared for the future.

The Dangers of Unfunded Trusts

A trust will only control assets that have been legally transferred into it. If bank accounts, real estate properties, investment accounts, or other assets are titled in a person's individual name rather than in the name of the trust, those assets will not be governed by a trust at all. After a person's death, these may need to pass through probate, and questions may arise about who will manage assets and how they will be distributed to beneficiaries.

This gap between a signed trust document and a properly funded trust can create serious consequences. Family members may be surprised to learn that probate will be required. Assets that were meant to be distributed quickly and privately may become tied up in probate court for months. In some cases, an unfunded trust can create confusion about a person's true intentions, including in situations where other estate planning documents do not align with the terms of the trust.

How Our Firm Assists With Trust Funding

Our attorneys will not only help clients create and sign trust documents, but we will make sure funding is completed correctly. We can work with clients to review a full list of their assets and determine the appropriate steps needed to transfer each one into a trust.

When addressing issues related to real estate property, new deeds may need to be prepared and recorded to transfer ownership from a person to a trust. Bank and investment accounts may need to be retitled, or beneficiary designations may need to be updated to align with a trust. Our lawyers can also review retirement accounts, life insurance policies, and other assets that may need to be handled differently. We can determine whether assets may be transferred directly into a trust or whether other steps may be taken to achieve a person's goals.

Beyond the initial funding process, our team will work to ensure that clients keep their trusts up to date. When a person acquires new property or opens new accounts, or when a family experiences a change in circumstances, additional steps may be needed to make sure different types of assets are addressed correctly in a trust. By helping clients make the proper updates as the years pass, we can make sure a trust will continue to reflect a person's wishes and provide for a family's needs.

Types of Trusts Used in Estate Planning

Depending on a senior's goals, several types of trusts may be appropriate as part of an estate plan, including:

• Revocable Living Trusts: This type of trust can be changed or revoked during a person's lifetime. It will allow assets to pass to beneficiaries without going through probate, and a person will typically retain control over their assets during their life. They may use their assets to address their own needs, and they can provide instructions for when and how assets will go to beneficiaries.
• Irrevocable Trusts: Once this type of trust has been established, it generally cannot be changed. Irrevocable trusts may be used for asset protection purposes, including planning for long-term care costs and Medicaid eligibility or reducing potential estate taxes.
• Special Needs Trusts: These trusts may allow a family to provide financial support for a loved one with a disability without affecting that person's eligibility for government benefits such as Medicaid or Supplemental Security Income.
• Testamentary Trust: Rather than being established during a person's lifetime, a trust may be created through a will, and it will only be funded after a person's death. These trusts may be used to manage assets for minor children or other beneficiaries. The terms of a will can ensure that a trust will be created and funded correctly.
• Charitable Trusts: A person or family can provide financial support to a charitable organization through a trust, and these arrangements can also provide tax benefits. Depending on a family's needs, a charitable lead trust or charitable remainder trust may be structured to provide distributions to family members along with donations to charity.

Each type of trust can serve a different purpose. Our attorneys can work with seniors and their families to determine which options will help them achieve their specific goals. We will make sure the right steps are taken to fund different types of trusts while providing ongoing guidance on how trusts may be updated to reflect a person and family's changing needs.

Frequently Asked Questions About Funding Trusts

Contact Our Yorkville, IL Trust Funding Lawyers

A trust will only be effective if it is funded correctly. Seniors who take the time to properly fund their trusts and keep that funding updated over time will provide themselves and their families with the protection and efficiency that trusts are designed to offer. To learn how Gateville Law Firm can help seniors create and fund trusts correctly, contact our Yorkville trust funding attorneys at 630-780-1034.