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A living trust, unlike a will, can keep your assets out of probate proceedings. A trustor names a trustee to manage the assets of the trust indefinitely. Wills name an executor to manage the assets of the probate estate only until probate closes.

Once assets are placed in an irrevocable trust, you no longer have control over them, and they won't be included in your Medicaid eligibility determination after five years. It's important to plan well in advance, as the 5-year look-back rule still applies.

Trusts and estates are required to make estimated tax payments. However, an estate or a grantor trust to which the residue of the decedent's estate passes under the will is not required to make estimated tax payments for tax years ending before the second anniversary of the decedent's death (IRC § 6654(l)(2)).

Limited Asset Protection: While it provides privacy, a living trust may not shield assets from creditors or lawsuits as effectively as an irrevocable trust. Funding Challenges: Transferring assets into the trust can be overlooked or require constant updates as financial situations change.

To transfer real property into your Trust, a new deed reflecting the name of the Trust must be executed, notarized and recorded with the County Recorder in the County where the property is located. Care must be taken that the exact legal description in the existing deed appears on the new deed.

Trusts and estates are required to make estimated tax payments. However, an estate or a grantor trust to which the residue of the decedent's estate passes under the will is not required to make estimated tax payments for tax years ending before the second anniversary of the decedent's death (IRC § 6654(l)(2)).

Generally, a fiduciary of an estate or trust must make 2024 estimated tax payments if the estate or trust expects to owe at least $500 in tax for 2024 (after subtracting withholding and credits).

Because of their complexity, it's more common to use an attorney to draft the documents and handle the funding of a living trust. This will cost you anywhere from $1,000 to, in the case of a complex estate with lots of assets and many beneficiaries, as much as $10,000 or more.

The choice between a will and a trust in Illinois depends on your individual circumstances and goals. While wills are more straightforward, trusts offer benefits such as privacy, avoidance of probate and greater control. Then again, it's not an either-or proposition.