Chicago, IL asked in Estate Planning for Illinois

Q: At what size Net Worth should I consider a Trust instead of a Will?

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4 Lawyer Answers
Stephanie Sexauer
Stephanie Sexauer
Answered
  • Estate Planning Lawyer
  • Chicago, IL
  • Licensed in Illinois

A: Hi there,

Congratulations for considering an estate plan! It's so important to do this as soon as you're able, but we know most people don't (which makes their estates ultimately much messier and more expensive when they become disabled or die). I'm assuming you're referencing what's called a "revocable" living trust (as opposed to "irrevocable").

In Illinois, we generally know an estate will be subject to probate if:

1) you own real estate (even with a mortgage)

2) you have assets over $100,000

(both assuming these assets are not jointly owned, in trust, or name a beneficiary)

We also know a minor or adult guardianship estate may be needed, depending on various factors (if a beneficiary is a minor or disabled adult, if the grantor becomes disabled during life due to accident or incapacity, etc.).

I think you should consult an attorney you're comfortable with to discuss your specific needs to see if you might benefit from a trust-based estate plan. Please note, this is not legal advice and we have not established an attorney/client relationship.

Please do reach out to me directly at (312)300-4743 or sms@sexauerlaw.com if you'd like to schedule a consultation with me. Thank you!

Charles E. Hutchinson
Charles E. Hutchinson
Answered
  • Estate Planning Lawyer
  • Wilmette, IL
  • Licensed in Illinois

A: For the vast majority of my clients the decision between a trust and a will is not about net worth. With the Death tax threshold being so high right now ($11,700,000 federally, and $4,000,000 in Illinois) most of the time this is not about avoiding paying taxes. The 2 big differences between having a will and a trust are

Charles E. Hutchinson
Charles E. Hutchinson
Answered
  • Estate Planning Lawyer
  • Wilmette, IL
  • Licensed in Illinois

A: For the vast majority of my clients the decision between a trust and a will is not about net worth. With the Death tax threshold being so high right now ($11,700,000 federally, and $4,000,000 in Illinois) most of the time this is not about avoiding paying taxes. The 2 big differences between having a will and a trust are

Charles E. Hutchinson
Charles E. Hutchinson
Answered
  • Estate Planning Lawyer
  • Wilmette, IL
  • Licensed in Illinois

A: For the vast majority of my clients the decision between a trust and a will is not about net worth. With the Death tax threshold being so high right now ($11,700,000 federally, and $4,000,000 in Illinois) most of the time this is not about avoiding paying taxes. The 2 big differences between having a will and a trust are #1- Probate, and #2 - Control.

Wills are wonderful tools where people can transfer assets and provide for friends and family after their death. They make the probate process go much smoother, and as a result much more cost friendly, than going through probate without a will (knows as dying intestate).

The ability to avoid probate is a cost and time saver to your heirs and beneficiaries. Having a trust will allow your assets to avoid probate after you die.

The ability to control the distribution of your assets is also a strong motivator. For example, if you have young children you may consider wanting to have your assets managed for them until they reach an age where they will be more responsible with an inheritance. Maybe you want the money to be used for exclusive events such as education, the purchase of a home, or health care needs. These can be accomplished with a trust much easer and more effectively than with a will.

Regardless of if you choose to have a will, or if you want to move forward with a trust - having something is much better than having nothing. I suggest speaking to an estate planning attorney to walk through what you want and how you want it done.

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