How to Leave Money to Your Kids – But Not Their Spouses
It might be difficult to plan for the future – not only can it be scary to think about a time when you’re gone, but you might not know the best way to protect you and your family after you die.
However, planning ahead is the best way to protect the future of your kids and your assets. When it comes time to plan, you may have questions about how to ensure your children receive 100% of their inheritance (and how to keep their spouses from taking it).
That’s where we come in. Diamond Legal’s Illinois estate planning team is based in McHenry, IL, and we’re here to offer our decades of combined experience. Let us walk you through the best practices to leave money to your kids.
What Is the Difference Between a Will and a Trust?
Let’s face it: not everyone likes the people their children choose to marry. And when you’re planning to pass on your assets to your children, you may wonder whether their spouse will receive those assets, as well.
If you’re taking the first steps thinking about this process, you’ve probably already learned the difference between a will and trust. They are both legal documents that an individual can use to outline what happens to their assets when they die, but there are some differences between the two.
- Will: A formal set of instructions to your loved ones and the court telling it what to do with your kids and your stuff after you pass away. To enforce a will, a probate lawsuit needs to be filed, and the case will go to probate court, which can potentially be time-consuming and expensive. Your private information will also be publicly accessible.
- Trust: An agreement for someone to hold property for the benefit of another. A trust is established and managed in a legal document called a trust agreement. Trusts provide much more flexibility and control to the creator, and they also protect your private information from the public records of probate court.
Should I Set Up a Trust In Illinois to Protect My Assets After I Die?
There are many reasons to set up a trust, especially for individuals with children, whether they be adults or minors. One of the biggest reasons to set up a trust is that you have complete and total control over your assets.
If you want to ensure all of your assets go to your children – and only your children – after you die, then a trust is one of your best options.
When you set up your trust, you can include a variety of property and assets, such as:
- Money
- Cars
- Furniture
- Real estate
- Stocks
- Retirement accounts
- Ownership interests in businesses
When these assets are in the trust, not only can you outline in detail who receives your property and assets, and under what terms, it will also help your family avoid legal hassles like:
- Going to court to settle your estate
- Your kids giving their spouse all of your hard-earned money
- Your kids not paying the taxes on their inheritance and ending up with IRS debt
- Your kids or loved ones losing public benefits because they’ve inherited property
As you can see, there are many ways that your children can lose some of your property and assets in a will. A trust can help protect your assets for your kids, and not their spouses, the IRS, or anyone else.
What Are the Types of Trusts in Illinois?
There are a few types of trusts, but they typically fall under only a few categories. Trusts are usually either living and testamentary, and revocable or irrevocable.
- Living vs. Testamentary Trusts: A living trust, also known as an inter-vivos trust, you can access the trust during your lifetime. On the other hand, a testamentary trust, or a will trust, can only be accessed after you die.
- Revocable vs. Irrevocable Trusts: A revocable trust can be altered, or even terminated, during your lifetime. An irrevocable trust is the opposite – once you establish it, you cannot make any changes to it, even if you are still alive.
Contact an Illinois Trusts Lawyer Today
If you want to protect your assets after you die, and ensure they end up only in the hands of your children, then you need to contact an Illinois estate planning attorney today. Here at Diamond Legal, our trustworthy and devoted team has decades of combined experience working with individuals to ensure they have full control over their property and assets, and that their legacies are protected.
Contact us today to set up your initial consultation.
DISCLAIMER: Any information contained herein is solely for informational purposes. While it is important that you educate yourself, nothing herein should be construed as legal advice or create an attorney-client relationship. For specific questions, we urge you to contact a local attorney for advice pertaining to your specific legal needs.
