Trusts Attorney in Chicago, Illinois

What types of trusts are commonly used in estate planning?

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the most common is revocable trusts

revocable trusts or trusts that are

created by you these are trusts that

could be amended at any time but they’re

designed to hold assets to avoid probate

to gain certain tax advantages to make

sure that assets go to children at a

defined age maybe not 18 maybe 30 35 or

later the most common type of trust is

what’s called a revocable trust the

revocable trust becomes irrevocable when

you pass away or become incompetent but

while you’re alive you can freely make

changes to it and nothing changes in

your life the only thing that you’re

going to notice that’s different is the

name on on your accounts might be

different but you’re allowed to buy and

sell assets freely you can move assets

freely there’s tremendous advantages to

doing and creating a revocable trust

other types of trusts

can get very complicated irrevocable

life insurance trusts

Grant or retained annuity trusts grats

for sure there’s a whole alphabet soup

of trusts out there that are very

complex and can definitely help our


but I’m a big fan of not over lawyering

files so if it’s something that’s not

appropriate we’re not going to do it for

you but understand that there is a

multitude of trusts out there that can

deal with the number of situations

another common trust would be a special

needs trust and so if you’re a parent

with a child with special needs or a

loved one that’s on some means-based

program such as Medicaid for example or

Social Security there are certain trusts

such as special needs trusts that can be

created to allow them to continue to

receive benefits under those government

programs but also receive certain

inheritances from family and loved ones

Chicago, IL estate planning & probate attorney John N. Bielski II discusses the types of trusts commonly used in estate planning. He explains that the most frequently used type of trust is a revocable trust. These trusts are created by the individual and can be altered at any time. Their purpose is to hold assets to avoid probate, gain tax advantages, and ensure that assets are distributed to children at a specific age. Revocable trusts become irrevocable upon the individual’s death or incompetence. While alive, the individual can freely make changes to the trust without any noticeable impact on their daily life. Other types of trusts, such as irrevocable life insurance trusts or Grantor Retained Annuity Trusts (GRATs), can be more complicated and specialized. Special Needs Trusts are another common type of trust, created specifically for individuals who require government assistance programs such as Medicaid or Social Security. While there are many different types of trusts, it’s important to consider the situation and avoid overcomplicating the process.

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