Irrevocable Living Trust Illinois

For any trusts that become irrevocable after january 1 2020 the itc expands the class of beneficiaries who receive accountings and adds notice.

Irrevocable living trust illinois.

The grantor of a revocable trust typically retains full control over the assets in the trust. Once an asset is transferred to a revocable living trust the grantor loses at least some rights with respect to the asset. It allows you as the grantor to have flexibility in how your property is distributed to your beneficiaries. Illinois has a simplified probate process for small estates under 100 000 excluding real estate.

The benefits of a revocable living trust typically occur after the grantor passes. The probate avoidance and asset distribution benefits of a revocable living trust kick in at the death of the grantor. An illinois living trust is a document that allows the recipient s of a deceased individual s assets to avoid the court supervised probate process implemented after a person dies the initial creator of the trust referred to as the grantor will transfer property and assets to the trust and outline specific instructions for what shall be done with said property and assets when they die. An irrevocable living trust works as an asset protection tool because once assets are transferred into the trust they become trust property.

Illinois does not use the uniform probate code which simplifies the probate process so it may be a good idea for you to make a living trust to avoid illinois s complex probate process. Aside from avoiding probate the grantor person who establishes the trust has continued access to their assets if they become incapacitated in any way. Illinois irrevocable living trust form. An irrevocable trust on the other hand cannot be modified or revoked by the grantor once it is executed.

Trusts come in two general flavors. The illinois revocable living trust is an entity into which a person places their assets to save the inheritors the long and costly probate process in illinois. Illinois revocable living trust form. Irrevocable trusts offer a level of creditor protection.

Consequently they are out of the reach of creditors divorcing spouses and even the irs because you no longer have any legal ownership interest in the assets. Revocable living trusts and irrevocable trusts. It allows you as the grantor to have flexibility in how adobe pdf. Some grantors put restrictions on distribution such as restricting how the funds are expended or when they are distributable.

The itc adopts the prior illinois statute on accountings for all trusts that were irrevocable before january 1 2020 and for a trustee of a revocable trust who began acting prior to january 1 2020. Revocable trusts can be modified or revoked by the grantor at any time.