As estate attorneys in Lincolnshire, we often meet families who want peace of mind when planning for the future. One of the most effective estate planning tools available in Illinois is the revocable living trust. Many people believe that a will alone is sufficient, but a trust can provide benefits that a will cannot. A trust not only helps avoid the lengthy probate process but also offers privacy, flexibility, and greater control over how assets are managed during life and after death. By understanding how a revocable living trust works under Illinois law, families can make informed decisions that protect both their assets and their loved ones.
A revocable living trust is a legal arrangement created during your lifetime that allows you to transfer ownership of your assets into the trust. Under 760 ILCS 3/103 of the Illinois Trust Code, the creator of the trust, known as the grantor, retains the right to amend, revoke, or terminate the trust at any time while they are living and competent. You can serve as the trustee and continue managing your assets, or you may appoint another trusted individual. After your death, the trust becomes irrevocable, and the successor trustee distributes the assets according to your instructions.
One of the main reasons Illinois families choose a revocable living trust is to avoid probate. Probate is the court-supervised process of validating a will and distributing assets. In Illinois, probate is required if the estate is worth more than $100,000 or includes real estate titled solely in the decedent’s name (755 ILCS 5/Probate Act of 1975). This process can take months or even years, and it often results in additional costs and public disclosure of estate details. Assets held in a revocable living trust, however, bypass probate and are distributed directly by the trustee. This saves time, reduces expenses, and keeps family matters private.
Because the trust is revocable, you can change or dissolve it at any time while you are alive. This flexibility means you can adjust your trust as your family, financial, or personal circumstances change. For example, if you acquire a new property, you can transfer it into the trust. If family relationships change, you can modify the beneficiaries. This control allows you to maintain authority over your estate while planning for a smooth transition later.
A revocable living trust also provides protection if you become incapacitated. If you are no longer able to manage your affairs due to illness or disability, the successor trustee you appoint can step in and manage your assets without the need for a court-appointed guardian. Under Illinois law, this can provide a smoother transition than relying solely on a power of attorney, ensuring that your bills are paid, investments are managed, and your family’s financial needs are met.
Unlike wills, which are filed with the court and become part of the public record, a trust remains private. This means that the details of your assets, debts, and beneficiaries are not disclosed publicly. Many families in Illinois prefer this confidentiality to protect their privacy and prevent potential disputes.
When an estate goes through probate, disagreements often arise over how assets should be distributed. A trust provides clear instructions and gives authority to the successor trustee to manage and distribute assets. This clarity reduces the likelihood of family disputes and ensures your wishes are followed.
No. Even if you create a revocable living trust, you should also have a “pour-over” will. This type of will ensures that any assets not placed into the trust during your lifetime are transferred into the trust after your death. It acts as a safeguard to complete your estate plan.
Probate applies to assets titled solely in your name that exceed $100,000 or include real estate. By transferring assets into a trust, they are legally owned by the trust, not you personally. Because the trust owns the property, it is not subject to probate, allowing for faster and more private distribution.
Yes. As the grantor, you can modify or revoke your trust at any time while you are competent. This means you can change trustees, add or remove beneficiaries, or transfer additional assets. Once you pass away, however, the trust becomes irrevocable.
If you become incapacitated, the successor trustee you appointed will step in to manage your assets on your behalf. This avoids the need for court intervention and ensures your financial matters are handled smoothly.
A revocable living trust does not provide protection from creditors during your lifetime because you still control the assets. It also does not offer tax benefits beyond those available under federal and Illinois law. However, it does provide efficiency, privacy, and protection in case of incapacity.
The cost varies depending on the complexity of your estate, but creating a trust is often less expensive than the costs associated with probate. The long-term savings in time, money, and stress for your family usually outweigh the upfront expense.
Not necessarily. Some assets, such as retirement accounts, may be better handled through beneficiary designations. We review each client’s assets to determine which should be transferred into the trust to maximize the benefits.
At Orlowsky & Wilson, we help families throughout Illinois protect their futures with effective estate planning strategies. A revocable living trust can provide peace of mind, save your loved ones time and money, and ensure your wishes are respected.
Contact our Lincolnshire estate planning lawyers at Orlowsky & Wilson (847) 325-5559 to schedule a consultation. We proudly represent clients throughout Lincolnshire, Chicago, and across Illinois. Together, we can create a plan that secures your legacy and protects your family.
