Which is Better in Illinois, a Will or a Trust - YouTube

Hi everyone, this is Matt with Learn About Law and in this video, I’m going to discuss

Which is Better, a Will or a Trust?

The choice between a revocable trust and a will is based on your personal feelings and

the goals you intend to accomplish in your estate plan.

Revocable and irrevocable trusts are the two main forms of trusts.  Special needs trusts

and spendthrift trusts are two examples, but trusts can be configured to do almost whatever

you want, and they all fall into one of these two groups.

For most people, an irrevocable trust isn’t a viable choice because it entails permanently

transferring control of your property to the trust and its trustee—no there’s going

back.

If you change your mind, a revocable living trust may be “undone.” If you form a revocable

living trust instead of writing a will, you can always change your mind later if you’d

like to do so.

Compared to a last will and testament, this form of trust has several distinct advantages.

Getting Around Probate

The court-supervised method of shifting properties from a decedent’s possession to his heirs

is known as probate. Since the property has no other means of transferring to a living

person, it is expected when someone dies leaving a will—or even if they don’t leave a will.

Since the trust retains the properties and the trust hasn’t died, a revocable living

trust does not require probate. It’s a private arrangement between you and the trust party

as the “trustmaker” or “grantor.” In most instances, the grantor acts as the

trustee of his own revocable living trust during his lifetime, controlling the property

placed within it.

When the grantor dies, a successor trustee will be designated to take over control of

the trust, settling it and distributing its assets to the beneficiaries named in the trust

documents.

Keeping Your Personal Information Private

When a will is sent to the court to open probate, it becomes public record. Anyone can read

it if they come to the courthouse. They’ll be able to tell what you owned and who you

left it to.

Only the beneficiaries—and, in some states, the heirs, whether or not they are beneficiaries

of the trust—have access to the trust records. They won’t become public record until a

beneficiary or successor files a lawsuit challenging the trust’s validity.

Making Provisions for Mental Illness

A revocable living trust has a huge benefit over a will in that you will prepare your

estate if you become mentally incapacitated, not only when you die.

If you become mentally unstable to the extent that you can no longer manage your affairs,

your successor trustee can step in.

Your trust documents may indicate how you will be determined to be mentally incompetent,

such as by your own physician’s certification or by a team of physicians who must agree.

When this occurs, your property would not be transferred to your heirs as it would be

if you died. If you are unable to handle your assets and property, your successor trustee

will do so for you.

This is something that a will cannot provide for. If you don’t have a revocable living

trust, your loved ones will have to petition the court to name a guardian or conservator

to handle your affairs.

You may also need a will.

When a trust is formed, it is an empty vessel, a legal entity with no property ownership

until you pass your property into it. If you’ve made no other plans for it to transfer to

living beneficiaries, property that’s left out may still require probate.

To deal with excluded property, some people build “pour-over” wills. This form of

will clearly directs that when you die, everything you own under your own name should be transferred

to the trust. A pour-over also necessitates probate.

In most states, you may also use a will to appoint a guardian for your minor children

if you die. This is something that a trust cannot do.

A Cautionary Note

Some revocable trusts don’t consider mental incapacity, while others have only basic preparation.

If you decide to create a trust, make sure it has a detailed disability plan.

Thanks for watching. To learn more, check out our article linked below. Be sure to leave

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