There are two main ways you can choose to distribute your assets after your passing: a will or a trust. While the former is useful and most common, a trust offers numerous advantages for both you and your beneficiaries. Here's a closer look at why it deserves your consideration during the estate planning process. 

3 Useful Benefits of a Trust

1. Skip Probate

When a person passes, their estate may have to enter the probate process in which the court can put a hold on the assets being distributed. This is due in large part to a six-month waiting period that is in place to allow creditors and anyone contesting the will to come forward. This can result in a lengthier administration process. 

The probate process is challenging and comes with many legal fees. However, only assets that you own at death are required to enter it. If you've set up a trust, the assets are technically transferred to a separate entity. As such, it allows your beneficiaries to bypass the process altogether. 

2. Maintain Privacy

All court processes become public record. By skipping probate, the details of your estate distribution aren't automatically made public since they don't go through the court system. As a result, it allows you and your loved ones to keep the arrangements private. 

While the contents of a trust must still be disclosed to certain interested individuals, choosing this path during estate planning is helpful if you've chosen not to include certain relatives as beneficiaries, preventing hurt feelings or even potential lawsuits. It's also useful when distributions among beneficiaries aren't equal. Without public access to the process, there's less risk of jealousy and dissension within the family. 

3. Set Parameters

With a will, your only legal control is outlining which assets go to who. It's a single-use document that only comes into play at death and is finished as soon as the distributions are made. While you can make suggestions or requests, the beneficiaries aren't legally bound to your wishes once the distributions have been made.  

A trust, on the other hand, provides far more control as you can set stipulations as to when and how the assets are distributed far after your passing. The separate entity exists outside yourself and is set up so that it can remain intact and operational long after the original trust maker’s passing. 

For example, you can require individuals to reach a certain age before receiving their inheritance or dictate that certain amounts must be used for education only. As such, it's an important option for anyone with young children and financially dependent adults. 

While many trusts are created as separate documents, wills can also be created with trust language, known as a testamentary trust, which are often utilized by parents with young children. 

Estate planning is not a one size fits all process and it is important to speak with an experienced estate planning attorney so that you can craft the plan that is right for you.

If you're ready to begin the estate planning process, contact Hayes & Sarff, P.C. for dependable guidance. Illinois residents across Mason, Peoria, and Tazewell counties rely on the local probate lawyers for knowledgeable legal assistance. From revocable trusts to wills, the team is committed to a personalized approach. Find out how they can assist you today online or by calling (309) 347-2101 for a consultation.