Trusts

Trusts – Strategic Estate Planning in Lake Bluff, IL

Strategic, Flexible, and Private: Trusts Are The Cornerstone Of Modern Estate Planning

At Strategic Estate Planning, we help clients across Lake Bluff, Lake Forest, and greater Lake County build comprehensive, private, and tax-smart estate plans using trusts. A Revocable Living Trust (RLT)—often referred to simply as a Living Trust—is one of the most powerful tools in estate planning. It offers flexibility during your life, protection during incapacity, and seamless administration at death—all without the delays and publicity of probate.

What Is A Revocable Living Trust?

A Revocable Living Trust holds legal title to your assets while you’re alive, allowing you to maintain full control and access. You serve as the trustee and beneficiary during your lifetime, and you appoint successor trustees to manage or distribute your assets in the event of incapacity or death.

Unlike a Will, which becomes effective only after death and must go through probate, a Living Trust becomes effective the moment it’s created and funded. You continue to manage your assets just as you always have—with complete flexibility. You can modify or revoke the trust at any time.

Key Benefits of a Living Trust:

• Avoids Probate: No court involvement means faster, private administration.
• Incapacity Planning: A successor trustee can step in without the need for a guardianship or conservatorship.
• Privacy: Trusts do not become public records, unlike Wills.
• Flexibility and Control: Amend the trust anytime while you are alive and well.
• Streamlined Administration: Your loved ones can handle your affairs quickly, efficiently, and without public scrutiny.

You remain in charge of your assets while you’re living and competent. Nothing changes with your taxes or financial reporting. You still use your Social Security Number, file a standard 1040, and manage your assets as usual.

Credit Shelter Trust (A/B Trust)

For married couples with higher net worth, we often recommend a Credit Shelter Trust, also known as an A/B Trust or Bypass Trust. This trust structure preserves both spouses’ federal estate tax exemptions by establishing an irrevocable trust when the first spouse passes.

The surviving spouse retains access to income or limited principal, while children or other heirs benefit from the remaining assets later. The trust ensures that neither spouse’s exemption is wasted and prevents estate tax liability on the same assets at the second death.

Qualified Personal Residence Trust (QPRT)

A QPRT allows you to transfer your primary or vacation home to your heirs at a deeply discounted gift tax value while still living in the property. You reserve the right to occupy the home for a set number of years. After that period, the property passes to your beneficiaries, removing future appreciation from your taxable estate.

QPRTs are especially effective for high-value real estate and offer an additional layer of creditor protection because the property is no longer in your personal name.

Irrevocable Life Insurance Trust (ILIT)

Many people are surprised to learn that life insurance proceeds are included in their taxable estate. An ILIT removes the life insurance policy from your estate, protecting the full death benefit from estate taxes.

ILITs can also be customized to:

• Provide income to a surviving spouse
• Protect financially vulnerable beneficiaries
• Stagger distributions over time

Medicaid Asset Protection Trusts

For many families, the greatest financial threat is not estate taxes—it’s the cost of long-term care. A Medicaid Asset Protection Trust allows you to set aside assets for future generations while shielding them from Medicaid spend-down rules.

Because Medicaid planning involves strict rules, these trusts must be irrevocable to qualify. Our team helps you plan ahead so that you can preserve wealth and maintain eligibility for long-term care benefits when needed.

Testamentary Trusts

A Testamentary Trust is created within a Will and goes into effect only after death. It is often used to manage inheritance for minor children or beneficiaries who should not receive assets outright. These trusts are court-supervised but can offer structured control and protection when needed.

Why Choose Strategic Estate Planning For Trust-Based Planning?

We help individuals and families design trust plans that match their values, protect their wealth, and provide peace of mind. Trusts are not just for the ultra-wealthy—they’re for anyone who wants to keep their affairs private, stay in control, and make life easier for their loved ones.

Based in Lake Bluff, IL, we serve clients throughout Lake County, Cook County, and the North Shore. Whether you need a revocable trust, irrevocable trust, or specialized structure, we’ll walk you through your options with clarity and care.

Ready To Protect What You’ve Built?

📞 Call us at (847) 234-4445
📍 Visit us at 900 North Shore Drive, Suite 255, Lake Bluff, IL 60044
🌐 Or schedule your free consultation with Strategic Estate Planning today.

Trust your future to a firm that plans for everything.