Many Chicago-area families choose to create a revocable living trust thanks to several notable benefits. Chief among them is the potential to avoid the probate process and streamline estate administration for their family.
But creating a revocable living trust isn’t a set-it-and-forget-it process. Once the grantor passes away, someone still must administer the trust.
That person is the designated successor trustee, and there is no shortage of responsibilities that land on their plate. Assets must be identified, the estate’s debts and taxes must be settled, and inheritances distributed.
For many who have never handled these responsibilities before, the process can feel overwhelming.
That’s why many trustees seek help from an attorney to administer a living trust.
But is a trust administration attorney really necessary for a revocable living trust in Illinois? The answer often depends on each individual situation, but hiring a living trust lawyer can facilitate a smooth process that avoids the potential for mistakes.
What is a Revocable Living Trust?
A revocable living trust is a common estate planning tool, one whose benefits make it a popular choice among Chicago-area families.
Creating a revocable living trust allows the grantor, the person who creates the trust, to retitle their assets into the trust while they are still alive. This technically transfers ownership of the assets to the trust, instead of the individual. However, as the initial trustee often, the grantor remains in full control of the trust and its assets while they are alive.
This is why it is called a living trust. The grantor can still update the trust, add or remove assets, change beneficiaries, and even revoke the trust entirely as long as they remain of sound mind. That gives grantors a great deal of flexibility in how they structure their estate plan.
A successor trustee is named in the trust documents. Once the grantor passes away or becomes incapacitated, the successor steps in and begins trust administration duties.
Instead of the estate passing through probate, as with a will, the successor trustee will follow the instructions left in the trust, settle the estate’s debts, and administer trust distributions to beneficiaries.
A living trust attorney in Chicago can work with your family to properly create and fund the trust, and streamline the process.
Why Many Chicago Families Choose a Revocable Living Trust
In Illinois, most estates that rely on a will instead of a trust typically pass through probate, especially when real estate like homes, condos, or rental properties are involved.
Probate in Illinois is a slow process, often taking six months or longer. The more complex the estate’s assets are, the longer probate can take. The most intricate probate cases can exceed a year.
Creating a revocable living trust is an attractive option for many families precisely because it bypasses probate in most cases. Transferring these assets to beneficiaries is much quicker when the assets have already been placed in a trust.
Another reason that Chicago families choose to establish a trust is privacy. Unlike probate, which is a public process, trust administration is generally private. It does not require public court filings, and keeps information about your assets, beneficiaries, and distributions out of the public eye. This is preferred by many Chicago-area families.
What Happens When the Trust Grantor Passes Away?
When the grantor of a trust passes away, the named successor trustee immediately takes over managing the trust.
The trust now becomes irrevocable, and no changes or additions can be made to it.
The new trustee now has a fiduciary duty to manage the trust and its assets in the best interest of the beneficiaries. The beneficiaries themselves also have rights, such as the right to be informed throughout the process and the right to an accounting of the assets.
At this point, the trust administration begins and the trustee must begin exercising their duties.
What Does Trust Administration Actually Involve in Illinois?
A trustee’s duties begin immediately once the grantor passes away.
Their first responsibility is to locate and review the trust documents. Next, they must take inventory of all assets placed within the trust. They’re also responsible for notifying all named beneficiaries of their interests in the trust.
Trustees are also responsible for settling the estate’s debts and taxes from the estate’s funds. This is a crucial duty, as debts must be paid before inheritances can be distributed. Additionally, any properties owned by the trust must be managed by the trustee until they are passed on to beneficiaries. That means the trustee is responsible for transferring ownership, or selling the properties, as dictated by the trust documents.
While trust administration happens outside of probate, there is still a great deal of legal and financial responsibility placed on the trustee. These obligations can feel overwhelming, especially when a trustee has never handled these duties before.
This is when working with an attorney to administer a living trust can be a smart move. They can help shoulder the load and provide legal guidance throughout the trust administration process.
Do You Really Need Legal Help from a Trust Administration Attorney?
Strictly speaking, there is no legal requirement for a trustee to hire a living trust lawyer for legal guidance with trust administration. But depending on the complexity of the estate and the assets involved, hiring an attorney to administer a living trust can be extremely helpful.
Small estates with only one beneficiary and no major assets like real estate may be straightforward enough for a trustee to handle on their own. In the Chicago area, where property values are soaring, having even a single property to administer becomes much more difficult without legal guidance.
When there are multiple beneficiaries, or when they disagree with each other over the distribution of the assets, things become even more complicated.
Trustees have real legal responsibilities. Making errors can have serious implications for both the trustee and the beneficiaries. Working with a trust administration attorney provides the trust administration legal guidance to ensure that a trustee is able to complete all their duties accurately and efficiently.
They will make sure that debts are paid, tax obligations are fulfilled, and see that trust distributions to beneficiaries are handled properly.
How a Trust Administration Attorney Can Help
A trust administration attorney does more than simply handle paperwork. They act as a resource for the trustee, helping them understand their duties and the specific terms of the trust.
They also ensure that the trust is administered according to Illinois legal requirements. That means notifying beneficiaries in a timely manner, handling the sale or transfer of properties, and ensuring that taxes are paid.
Illinois is one of the few states that still has a state-level estate tax. Its exemption level is far lower than the federal estate tax exemption. Because the value of Chicago-area properties has increased significantly, even owning a single property may contribute to potential estate tax obligations.
A living trust attorney helps families organize their assets in a way that makes it easier for a trustee and attorney to handle potential tax responsibilities. Creating a revocable living trust doesn’t remove the obligation to pay estate taxes, but it can make the process more manageable for the family and trustee.
Trust administration attorneys also ensure trust distribution to beneficiaries is handled correctly according to the trust terms. They can also act as an impartial third party when disputes or misunderstandings around inheritances occur.
In short, trust administration legal helps makes life much easier for a trustee, and gives them a reliable resource to guide them through the entire trust administration process.
Looking for Trust Administration Legal Guidance? Contact Staza Law
Revocable living trusts simplify estate planning for many Chicago-area families by bypassing the need for the lengthy probate process.
However, the successor trustee still has significant fiduciary duties that they must take seriously. A trust administration attorney helps ensure that the process goes smoothly and that a trustee fulfills their legal obligations.
If you or someone in your family is in need of trust administration legal guidance, contact Staza Law. Our team can help you understand your obligations and make sure that everything is handled correctly throughout the entire trust administration process.
Contact Staza Law today for an initial consultation to discuss your situation and see how we can help.
**Disclaimer**
The content of this blog is for general informational purposes only, and does not constitute legal advice. Please consult with a qualified attorney for advice specific to your situation.