Declaration of Trust Attorney
DECLARATION OF TRUST ATTORNEY
Declaration of Trust
A Declaration of Trust is used when a person that creates a trust or called a “trustor”. A Trust is a legal document that gives rights to the Trustee that manages the trust over their property. A Trust is a legal entity that is separate from an individual person. A Trust or Declaration of Trust can hold legal property such as real estate, bank accounts, and other financial assets.
A Trust Agreement or Declaration of Trust Agreement is a legal agreement, which outlines how a person wants to distribute their assets upon a death or incapacity. In estate planning, a Trust is one of the legal strategies to avoid probate court. A Trust Agreement has several essential paragraphs typically dealing with the following key terms:
• Distribution of one’s personal and family assets
• Spendthrift Provision: Protects a beneficiary’s assets in case of a disability or death
• Incapacity provision: A provision where a successor Trustee is picked in case of an incapacity.
• Key Powers of Trustee: The Trust Agreement will outline the powers of the Trustee or Successor Trustee
Benefits of a Declaration of Trust
There are four (4) major benefits of a Declaration of Trust or otherwise known as a “Living Trust”. The first major benefit of a Declaration of Trust is avoidance of probate court. Probate court is a court, which supervises the distribution and appointments of executors that manage a deceased person’s estate. A properly prepared and funded Declaration of Trust will avoid probate court unlike a Last Will and Testament.
The second major benefit of a Declaration of Trust is privacy. A Last Will and Testament must be filed at the local Kendall County Courthouse. A Last Will and Testament is a public document where anybody has the right to view the contents of the Last Will and Testament. A Declaration of Trust is an agreement, which is private and does not have to be filed at the local courthouse. Furthermore, a Declaration of Trust is only eligible to be reviewed by its’ beneficiaries. In contrast, a Last Will and Testament may be viewed by neighbors, heirs, legatees, creditors, and anyone else.
The third major benefit of a Declaration of Trust is the spendthrift provision. A spendthrift provision provides creditor protection for a person’s beneficiaries that inherit under the terms of the Declaration of Trust. Creditor protection is not given to the creator of the Trust but their beneficiaries. This creditor protection protects one’s inheritance from a divorcing spouse, bankruptcy court, and other creditors. On the contrary, a Last Will and Testament does not provide creditor protect for its’ beneficiaries.
The fourth major benefit of a Declaration of Trust is the ability to control one’s assets upon their death or incapacity. In contrast to a Last Will and Testament, a Declaration of Trust is designed to address a person’s possibility of incapacity. A Declaration of Trust may be altered, amended or changed prior to their death or inability to make their own decisions. One of the major advantages of a Trust is the ability for the Trustor (creator of the Trust) to have strings attached to their inheritance (such as the children get their inheritance at age 25, 30 and 35 years of age) or the Trustor gives their beneficiaries incentives to work to obtain their inheritance.
Experienced Declaration of Trust Attorney in Yorkville and Kendall County
In conclusion, We are the Principal of Robertson Legal Group, LLC, which concentrates in estate planning, declaration of trust, special needs trust planning, and nursing home asset protection for the elderly and seniors. Sean has offices in Yorkville and serves surrounding communities such as Sandwich, Aurora, Montgomery, Oswego, Plano, Minooka, Morris, Shorewood, Bristol, Newark, Plattville, Plainfield, and Joliet. Sean may be reached at 630-780-1034 or via email at Sean@GatevilleLawFirm.com.