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Estate Planning

Wednesday, February 19, 2014

Plain English Living Trust

Frank M. Greenfield urges you to never sign a legal document, especially one as important as a will or a living trust designed to protect your assets and your family unless you truly understand what you are signing.

What Is a Living Trust in the Context of Estate Planning? 

In the context of estate planning, a living trust is an entity which you create, in the form of a written document.  The document is referred to as a trust agreement or a declaration of trust.  The trust agreement serves the purpose of a will, but avoids a probate court proceeding upon death.  The person who creates a living trust is referred to as the Grantor.  The person who is charged with carrying out the terms of the trust is referred to as the Trustee.  Most often, when the trust is created, the Grantor and the Trustee will be the same person.  If the trust agreement designates you as Trustee, then you are the person who has complete control of all assets, in the exact same manner as you presently control your assets.  You have the option of designating two persons to act as co-trustees.       

Once the trust document is signed, it is deemed to exist as a legal entity.  For illustration purposes, a corporation is also an entity.  A corporation is owned by shareholders and is operated by its President.  A corporation, like a trust, is a "thing", an entity that has a legal existence.  A corporation owns assets, has employees, pays taxes, etc., but people own and operate the entity.  A living trust owns assets, but the power to control those trust assets resides solely in the Trustee during the lifetime of the Grantor.  Just as a corporation has a name, we give the trust a name, for example, the "John Smith Trust".   

After the trust agreement is signed, we proceed to transfer legal title, which is to say, ownership, of various assets to the trust.  In other words, the title to your real estate and various investment accounts will be transferred and conveyed to the "John Smith Trust".  The trust agreement provides that during your lifetime, all assets owned by your trust are to be used for your benefit.  Since you are the Trustee, you decide what is for your benefit.  During your lifetime you continue to have 100% control over your assets.  Nothing changes until death.  At that point, the Trustee designated in the trust agreement as the successor trustee (or surviving co-trustee, as the case may be) has specific instructions as to how to administer and distribute the assets that are owned by your trust.  The instructions read like a will, in that after paying debts, such as income tax, funeral expense, etc., the Trustee is instructed to distribute the trust assets to the beneficiaries you named in the trust agreement.   

Why do you need a living trust?  The answer is that a living trust avoids a probate court proceeding upon death.  When a person dies leaving property titled in his or her name, the court proceeding is necessary so that ownership of the decedent's assets are transferred to the proper beneficiaries in a manner that each beneficiary will have clear title and all rights of ownership to their inheritance.  Probate is required even if the decedent left a will.  By law and definition, a deceased person cannot own anything.   As to those assets owned by a living trust established during a person's lifetime, probate is not necessary because the assets were not owned by that person at the time of his or her death.     

A probate court proceeding consumes considerable time and money.   Among other benefits, a living trust gives you and your family peace of mind that your assets will pass to your beneficiaries in a timely manner with no probate court costs or related legal fees.    

FOR MORE INFORMATION contact Frank M. Greenfield at fgreenfield@fmg-law.com or visit us at www.fmg-law.com


Thursday, October 13, 2011

Real Estate, Business & Estate Planning Law in Changing Times

 

The Economic Recession and Jobs, the Housing Bubble and New Home Construction, the Debt Ceiling Debate and Interest Rates, and a new mayor taking the reigns in Chicago...many changes are afoot across Chicago, Illinois, and the nation. Each shift of the national landscape directly impacts real estate, business, and estate planning decisions and legal strategy.

The Chicago Real Estate, Business, and Estate Planning Attorneys at Frank M. Greenfield & Associates not only have extensive experience in their fields, but are always on top of the rapidly changing landscape of law in these tumultuous and exciting times.

Frank M. Greenfield & Associates, a professional corporation, has provided a wide range of legal services to individuals and businesses in the greater Chicagoland community since 1968. We are committed to delivering high quality, personalized services. We advance and protect our clients’ interests in an efficient and economical manner. The advantage of a small firm is that every client receives individualized attention.

As such, our Blog will not only be your source for the most recent changes and biggest news in law, we will also focus on how a superior knowledge of the law can provide unexpected opportunities for financial growth and security that most law firms do not take the trouble to pursue.

The Chicago Tribune recently reported that fixed mortgage rates have fallen to historic lows and are likely to continue to decline.  The average on a 30-year fixed mortgage fell to 4.01 recently, according to Freddie MacThese historic lows create an opportunity to acquire both residential and commercial real estate, and Real Estate Attorneys are gearing up to guide prospective buyers and sellers through this important process.

Also, Crain’s Chicago Business recently ran an editorial discussing the meteoric rise of the “daily deal” business, most notably the success of local Chicago start-up, Groupon.  Groupon burst onto the scene during economic turmoil, and yet has grown to thrive by understanding that shaky consumer confidence can translate to profitable business opportunities for those who are willing to work smart and meet challenges.  The lesson for business owners and potential entrepreneurs is that now is the time to make big moves to reorganize your business, or even to open a new one.  Business Law can appear complex, but the right Business Law Attorney can help you protect your assets as you chart your company’s future.

Law is not static, and, unlike the old cliché, it is not written in stone. In fact, staying on top of legal and world news is a client’s greatest advantage and a lawyer’s most powerful tool.

If you have a legal question, do not hesitate to contact Frank M. Greenfield & Associates to get a swift, knowledgeable answer. A Real Estate, Business, or Estate Planning Attorney is standing by to provide you with powerful legal solutions. Contact us today!

Tags: Chicago Real Estate Lawyer, Chicago Real Estate Attorney, Chicago Business Law Lawyer, Chicago Business Law Attorney, Chicago Estate Planning Lawyer, Chicago Estate Planning Attorney

 




Frank M. Greenfield & Associates, P.C., has offices in Chicago and Northbrook and assists clients with Business Law, Estate Planning and Real Estate throughout Chicago and the Greater Metropolitan Chicago Area including Skokie, Buffalo Grove, Lake Forest, Palos Heights, Arlington Heights, Wheaton and Elmhurst.



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