A trust, referred to as a “revocable living trust” or “living trust”, allows your beneficiaries to avoid the probate process that is required for property distribution under a will but still allow you the ability to designate who should receive your property and personal possessions at the appropriate time. Probate in Illinois can be a costly, lengthy process, generally lasting more than a year and sometimes several years.
Certain trusts also allow you and/or your beneficiaries to receive income during your lifetime. People often automatically equate trusts with tax minimization, which is incorrect. Preventing adverse tax consequences can be accomplished through trusts that are specific wealth preservation mechanisms. However, the main purpose of a living trust is probate avoidance.