What Is A Trust and Why Do I Need One?

We have all heard the term “Trust” but many individuals don’t understand what Trusts actually are, and even fewer people recognize the importance of Trusts.

Trust Basics

A “Trust” is commonly defined as a legal relationship that allows a third party, otherwise known as a Trustee, to manage the assets of the individual who created the Trust, otherwise known as the Grantor. The Trustee manages the assets so that the assets can be distributed to the correct people, otherwise known as beneficiaries, after the Grantor’s death.

While a Trust is technically a legal relationship, in practice, a Trust is memorialized in a physical document. Specifically, the Trust document lays out the rules of how the Trust’s assets are to be managed. For a simple analogy, a Trust is like a gardener with a bucket. The gardener fills the bucket with water and eventually, the gardener carries the bucket over to water several plants. The bucket itself is the Trust document - a shell created to hold your assets. The water represents your assets, including your house, personal property, bank accounts, life insurance, etc. The Trust holds your assets throughout your life until the Grantor, or gardener has passed away and the assets, or water, are to be distributed to the beneficiaries, or plants.

How do my assets get into my Trust?

Once your Trust is created, you must title your assets into the name of your Trust. In practice, this requires you to contact your financial institutions to change the beneficiary of your accounts to your Trust, or to open new accounts in the name of your Trust. While this step is relatively simple, it is critical to complete this step so that your Trust functions as intended. To continue our analogy, without properly titling your assets, the gardener will have no water in his bucket for his plants.

Are there different types of Trusts?

There are several different types of Trusts, all of which can be tailored to your specific needs. In estate planning, one of the most common Trusts is a “living” Trust. This Trust is created during the Grantor’s life and can be changed, or amended, throughout the Grantor’s lifetime in order to account for any of the Grantor’s life changes. When a Trust can be changed, the Trust is considered to be “revocable.”

In contrast to a revocable Trust, there are “irrevocable” Trusts. Irrevocable Trusts cannot be altered once created. The permanent nature of irrevocable Trusts, while appearing quite inconvenient, can offer tax benefits that often substantially outweigh the inconvenience.

While Trusts can be broadly categorized as either “revocable” or “irrevocable” there are a myriad of other types of Trusts. Generally, Trusts can help to mitigate estate taxes, provide for and protect individuals with special needs, control assets, for privacy, to protect assets from creditors, and to protect children.

What is the difference between a Will and Trust?

In the state of Illinois, there is one major difference between a Will and Trust: Trust assets are not subject to Probate Court, but assets passing through a Will are subject to Probate Court. Probate Court is the legal process of administering the assets of someone who has passed away. This process, however, takes time and money, and can ultimately be avoided with proactive estate planning and through the use of a Trust.



Trusts are a critically important consideration for many Illinois residents. Trusts can be complicated, but the Lavelle Law team makes it a priority to make the process approachable and effortless. We tailor our estate plans to your individual needs so that you and your family are protected. If you would like to schedule a free consultation to hear more about how a Trust can benefit you and your family, please call attorney Heather A. McCollum at (847) 705-7555 or email her at hmccollum@lavellelaw.com.