Illinois Trust Administration Attorneys

Skilled Advanced Estate Planning Lawyers Serving Elmhurst, Naperville, DuPage County, and Across Illinois

Individuals and families with high net worth estates are exposed to significantly tax liability when they pass away. To minimize tax exposure and ensure a smooth transfer of wealth to the next generation, advanced estate planning is necessary. Trusts are sophisticated financial vehicles that can provide several advantages for affluent families. There are numerous types of trusts, however, and selecting the right one for your needs requires the assistance of an experienced trust administration attorney.

At Cisar & Mrofka, Ltd., we have five decades of combined experience helping clients develop advanced asset protection strategies to keep their hard-earned wealth out of the hands of the government and ensure smooth and seamless wealth transfers to future generations. Our lawyers have extensive experience setting up all types of trusts, and we understand what each trust is used for and its practical effect on individuals and families. We put our in-depth knowledge of trusts, charitable trusts and foundations and trust administration to work to give clients a comprehensive plan that fully addresses their needs and effectively accounts for all known eventualities.

Trusts vs. Wills

Wills and living trusts can both be used to distribute property to your heirs when you pass away. There are significant differences between the two, however, and affluent individuals are often better off setting up a trust. Though creating a trust is more complicated than a will, once it is set up and property is transferred into it, trusts can offer several benefits, including:

  • Avoiding costly and protracted probate proceedings;
  • Immediate transfer of property management authority should you become physically or mentally incapacitated;
  • Privacy protection -- unlike a will, trust administration is confidential and not a matter of public record;
  • If someone challenges your estate, it is typically far more difficult to bring a successful court challenge against a trust; and
  • Certain types of trusts can help families reduce the amount of estate tax owed.

Trusts are not for everyone, but for those with a significant amount of assets, they can offer strong asset protection and the ability to minimize tax exposure.

Revocable vs. Irrevocable Trusts

There are two basic types of trusts; living trusts and testamentary trusts. A testamentary trust is typically made as part of a will and does not take effect until the death of the grantor. The majority of trusts are living trusts that go into effect during the lifetime of the grantor and are usually set up in place of a will. Living trusts fall into two basic categories:

  • Revocable Trusts: Trusts that can be altered during the lifetime of the grantor.
  • Irrevocable Trusts: Trusts that cannot be altered once they are set up.

Revocable trusts are set up primarily to avoid probate, ensure confidentiality, and preserve flexibility. This instrument allows the grantor to retain control and make changes to it during his/her lifetime. The main disadvantage of a revocable trust is it does not do anything to reduce the estate tax. Since individuals with a net worth of roughly $5 million or less and couples with a net worth of roughly $10 million or less are exempt from the estate tax, those that fall into this category may see the most benefit from a revocable living trust. With irrevocable living trusts, the grantor no longer controls the trust once it is set up. The assets in the trust are controlled by the beneficiary, and changes cannot be made without their consent. Assets within an irrevocable trust can grow tax-free, however, and appreciated assets are not subject to the estate tax.

There are numerous other types of trusts that are more complex and can be set up for specific purposes. These include:

  • Credit Shelter Trusts
  • Charitable Lead Trusts
  • Charitable Remainder Trusts
  • Grantor-Retained Annuities
  • Irrevocable Life Insurance Trusts
  • Generation Skipping (Dynasty) Trusts
  • Qualified Personal Residence Trusts
  • Qualified Terminable Interest Property Trusts
  • Pooled Income Trusts
  • Intentionally Defective Grantor Trusts

Skilled Trust Administration Assistance, Call 630-530-0000630-530-0000

Although the judicial system is not involved with trust administration, the trustee has similar duties to the executor of a will. In addition to helping clients create the right trust for their specific needs, we can also work hand in hand with trustees to help them successfully carry out their administration duties. For experienced guidance with advanced estate planning and trust administration, contact our office today at 630-530-0000630-530-0000 for a personalized consultation with one of our attorneys. From our offices in Oakbrook Terrace, we provide skilled counsel, advice and legal representation for clients in DuPage County, Cook County, Kane County, Will County, Kendall County, and the state of Illinois.

Practice Areas

  • IAWA
  • Water Environment Federation
  • Illinois State Bar Association
  • DuPage County Bar Association
  • American Bar Association