Contrary to popular belief, setting up a trust account isn't just for the rich. Trusts can also be utilized by Illinois residents who have a little money set aside and who want to put them to work for the future benefit of their beneficiaries. Those who have accumulated a little nest egg may benefit from looking into trusts.
Some family members may not be great with finances and setting up a trust will ensure they will be able to manage what they're left by getting a little at a time, rather than getting everything in one lump sum. By the same token, a living irrevocable trust can continue giving for generations if set up properly. Assets in this type of trust can come from cash, stocks or real estate and once assets are in the trust, they are managed by a trustee.
Since these assets now belong to the trust, the trustor who placed them there won't have to pay income tax on them. With the proper know-how these assets can also be tax free for beneficiaries. Relinquishing control of these assets may also allow the trustor to move to a lower income bracket and thus pay less taxes.
There are all kinds options when it comes to trusts. A savvy Illinois estate planning lawyer will be able to enlighten his or her clients as to what those are and how they can benefit him or her in their estate planning endeavors. Trusts are ways for trustors to continue giving long after they have passed on.