Eastview Legacy - Basic Tools

Basic Tools

Regardless of age, life-stage, or family circumstances, there are two primary instruments used for estate planning: a will and a revocable trust.

The Will

A will is the fundamental element of every estate plan. It is the legal declaration of a person’s wishes regarding the disposal and distribution of his or her estate after death. The will is the legal document drafted during a person’s lifetime that can address various matters:

Final testimony of your Christian faith

Naming a legal guardian for minor children

Property and asset distribution

Naming an executor (personal representative)

Estate tax liability

In the absence of a will, the State will resort to a process prescribed by law. A judge will be named executor and, in the event of the loss of the parent(s), the court will name a guardian for minors. Finally, all assets and property will ultimately be distributed pursuant to the law and in a manner the court believes to be in the best interests of all parties.

Probate laws vary from state to state when it comes to the execution and validity of a will or, in the absence of any estate documents, administration of an individual’s estate upon death. For that reason, it is important to have a competent attorney, familiar with the laws of the State of Illinois, draft your will or review any wills established outside the State of Illinois.

The Revocable Living Trust (RLT)

Just as a will, the RLT contains language to distribute your assets at death. With the RLT, however, you establish the trust during your lifetime and transfer virtually all assets into it. Those assets are then controlled and managed by you, the trustee. The RLT can also include language to set up additional trusts should it become necessary. The single greatest advantage of the RLT over a will is that the RLT allows you to avoid probate.

The RLT is private. None of the contents of the trust are public record. Moreover, an RLT is much more difficult to successfully contest. The disadvantage of the RLT is that it is more expensive to draft and more difficult to maintain than the will. As assets are accumulated, it is important that every effort be made to ensure they are included in the RLT.

Both spouses may serve as trustee of the RLT. At the death of the first spouse, the surviving spouse normally serves as sole trustee of the surviving RLT and can also serve as personal representative of the estate under will.

Will versus the Revocable Living Trust

Assess the advantages/disadvantages of each relative to your personal circumstances. In many instances, individuals are attracted to the RLT because it avoids probate and is private.

[ Back ]