Are You Protected with a Living Trust?

“Our Mom Organized Everything...”

One day after their mother was murdered, three devastated daughters sat in my conference room. Their mother, a police officer, had told them that if anything happened to her, she wanted them to know she had organized all her affairs so everything would be in order. They had brought their mother’s red accordion folder that was perfectly organized. One of the daughters reached into the folder and said they were sure their mother had

WHAT IS A LIVING TRUST?

A Living Trust is a signed legal document allowing you to privately pass your assets to your family, friends, or charities after death. It also serves to protect you in the event of incapacitation.

Some important points to know:

• If you die or become incapacitated and have assets in your name, they are subject to Probate. These include bank accounts, investments, real estate, stocks and bonds, and minor beneficiary proceeds.

• The average time to complete the Probate process is 18 months to two years.

• The assets of minor children remain in Probate until age 18, with all assets released to them at that age.

• A fully funded Living Trust completely avoids Probate and is private.

• A Living Trust plan should contain Health Care and Financial Power of Attorney documents and a Pour-Over Will.

WHY DO YOU NEED A LIVING TRUST?

• To control and protect your estate, now and after your death.

• By law, no one can sign your name. Therefore if you acquire a disability, signing your name requires a previously executed Financial Power of Attorney, or you are subject to Guardianship Court. Your Financial Power of Attorney will be revoked by operation of law at your death.

• Accordingly, a Probate Estate must be opened if you have assets in your name after your death. A judge names an Executor to administer your estate.

• Last Will and Testaments do not avoid Probate. A Will is filed in court within 30 days after your death.

a Last Will and Testament. My heart sank.

I knew that if their mother had a Will, there would be a long, expensive, and painful road ahead. The Will would have to be filed, and a Probate estate would be required to be opened. The process would prolong the daughter’s grief and prevent closure for at least 18 months. It took 3.5 years.

Everything could have been completed in weeks if she had a fully funded Living Trust.

HOW DOES A LIVING TRUST AVOID PROBATE?

• You change the title of your assets to your Living Trust name. Consequently, they are not subject to Probate while you are living or at your death.

• Your Successor Trustee administers your estate privately and efficiently.

• Notably, the process could take only a matter of weeks.

DOES A LIVING TRUST PROTECT MY ASSETS?

• A Living Trust protects your assets from the time and expense, and family stress of Probate.

• A Living Trust does not protect against liability claims for as long as you are the Trustee. However, you can combine a Living Trust with sound asset protection strategies in numerous ways.

• A Living Trust provides complete asset protection for your children/beneficiaries if they are subject to a lawsuit or divorce.

WHAT ARE THE OTHER ADVANTAGES OF A LIVING TRUST?

• Protects you in the event of your disability

• Organizes lifetime management of your assets

• Contains specific instructions for inheritance

• Protects the wishes of the first spouse to die

• Provides for blended families from prior marriages

• Grandchildren included; children’s spouses excluded or included

• Excludes estranged children or other relatives

• Avoids the perils of joint tenancy

• Special Needs protections

• Protects against loss of Medicare and SSI benefits or government reimbursement if a beneficiary acquires a disability before your death

• Includes assets in all states and avoids multiple-state probate

• Contains a No-Contest Clause

• Provides creditor protection for beneficiaries

• Revocable

• Easily amended

• Readily adapted to the laws of another state if you move

Your Map Benefits

You and your family receive a 1/3 discount for a complete Living Trust Estate. Call my office today to lock in your MAP reduced rate for a complete Living Trust Estate Plan. Tom Tuohy has been a police lawyer for over three decades. His father was a CPD detective, and his grandfather was the CPD Chief of Major Investigations and Chief of Cook County Sheriffs Police. You can reach Tom at 312-559-8400, tom@tuohylawoffices. com, or visit his office in Oakbrook Terrace. www.tuohylawoffices.com