• Troy, IL Legal: What is a trust? Why do I need one?

    October 1, 2018 | Blog | Cards17Cubs16
  • irrevocable trust Is a trust a smart idea for my financial plan?

    When you spend most of your adult life working in Troy, IL and saving for the future, you want to make sure that all of your assets are treated with the same respect by your heirs if something should happen to you. A trust is a relationship. You designate a person (the trustee) to take responsibility for your financial estate or assets and make sure they are used for your benefit (if you can no longer communicate your desires) or the benefit of a third-party (a child or mentally challenged adult).

    Why Do I Need a Trust?

    A trust is one way to ensure that your money is not squandered or lost at the hands of an irresponsible heir. For example, if you’re divorced and your spouse will have custody of your children but you want to make sure the money you leave them is being spent appropriately for their benefit, you would create a trust and assign a trustee to serve as liaison to provide the kids money when they need it.

    Don’t I Need to be Wealthy?

    No, you don’t have to be rich to reap the benefits of a trust. It is a relationship that ensures your financial inheritance is safeguarded for use by the people it’s intended for. No matter whether you’re the CEO of a company or a supermarket clerk in Troy, IL, you still have the same need to protect your hard-earned assets.

    If you have a disabled child or adult living with you, a trust can be set up to ensure that the money you have saved for his treatment or general care is used for that purpose.

    revocable trust

    Revocable or Irrevocable?

    Do you want the option to change your mind about details of the trust? Then you want to choose a revocable trust. An irrevocable trust cannot be changed, and once you transfer property or funds into the hands of the trustee, you can no longer claim them as your own. An irrevocable trust is best utilized when you are ready to transfer ownership rights to your heirs. By moving tangible assets to another account, you lower the value of your estate and reduce estate taxes due after you pass.

    A trust is more than a financial entity, it is a relationship that can help you find peace in knowing that your assets are going to be used to care for the next generation. For more information on setting up a trust, consult with an attorney who is knowledgeable in estate law, like the attorneys at Levo, Donohoo & Associates.