This form is an agreement between the trustor and the trustee to create an irrevocable living trust.The purpose of the creation of the trust is to provide for the convenient administration of certain assets without the necessity of court supervision in the event of the trustor incapacity or death. Other provisions within the document include: trust assets, the abstract of the trust, and suggested trust registration.
What is an Irrevocable living trust?
A living trust is a legal document that individuals (grantors or trustors) prepare to create a fund of assets they want to hold during their lifetime and bequeath to the named people (beneficiaries) after they pass away. They assign a third party (trustee) to manage these assets and supervise their transfer at a predetermined time. A living trust are an essential tool for estate or property planning as an alternative to wills; allowing owners to distribute their assets (estate, stocks, bank accounts, etc.) as they wish and bypass state court probate procedures if they die intestate.
Trusts can be either revocable or irrevocable. An irrevocable living trust is the stricter form of property transfer as it excludes the grantor’s opportunity to modify anything in the agreement or to terminate it once set up. Though both types have similar terms, you should be aware of some important differences.
Revocable vs. irrevocable trust
As the name implies, a revocable trust allows the grantor to modify its terms (for example, transfer some assets out or add some extra ones, change the beneficiaries and trustees) or cancel it at any moment. Such terms are wholly different from those that apply to an irrevocable living trust, which must remain unchanged and without a termination option from the moment you set it up. However, in some states, the grantor can change the document with the beneficiary’s permission or by court order.
Both of these property grants have their benefits:
Types of irrevocable trusts
There are several irrevocable trust examples:
- Irrevocable life insurance trusts;
- Charitable trusts;
- Lifetime gifting trusts (including the grantor-retained annuity, spousal lifetime access, and qualified personal residence trusts);
- Testament trust created after the grantor’s death.
- Personal details of the parties involved (grantor, beneficiary, trustee, and successor trustee);
- Description of the transferred property items.
Living trust forms
To set up a living trust, the grantor must ensure the accuracy of the necessary paperwork. US Legal Forms offers only verified printable and electronically editable legal templates specific to your state regulations. Download our Trust Irrevocable Form and provide the following information:
The agreement template we offer is a universal multi-state do-it-yourself form. If you want to add additional terms to the contract or amend any existing ones, though, please consult a legal advisor to do this task correctly.
An Illinois Living Trust — Irrevocable is a legal instrument commonly used to protect assets, minimize estate taxes, and provide long-term care planning for individuals residing in Illinois. Unlike a revocable living trust, an irrevocable living trust cannot be changed or modified once it is created, except under very limited circumstances. One key aspect of an Illinois Irrevocable Living Trust is that it becomes effective during the granter's (the person who creates the trust) lifetime. This means that assets are transferred into the trust while the granter is still alive, allowing them to maintain control and benefit from those assets until their death. Upon the granter's passing, the trust's terms take over, directing how the trust assets will be distributed to beneficiaries. This helps avoid probate, which can be time-consuming and costly. There are different types of Illinois Irrevocable Living Trusts, each serving specific purposes: 1. Medicaid Asset Protection Trust: This type of trust is designed to protect assets from being counted for Medicaid eligibility purposes. By transferring assets into the trust at least five years before applying for Medicaid, individuals can potentially qualify for long-term care benefits while preserving their wealth for future generations. 2. Irrevocable Life Insurance Trust (IIT): An IIT is created to own life insurance policies and remove them from the insured's estate, reducing estate taxes. The life insurance proceeds are typically used to provide income or liquidity to pay estate taxes and other expenses. 3. Charitable Remainder Trust (CRT): A CRT allows individuals to donate assets to a charitable organization while retaining an income stream for themselves or their beneficiaries for a specified period. Upon termination of the trust, the remaining assets go to the designated charity. 4. Qualified Personnel Residence Trust (PRT): A PRT enables individuals to transfer their primary residence or vacation home to a trust while retaining the right to live in it for a predetermined period. This minimizes estate taxes while allowing continued use of the property during the specified time. 5. Special Needs Trust (SET): An SET is established to provide financial support for individuals with disabilities without affecting their eligibility for government benefits like Medicaid or Supplemental Security Income (SSI). When considering an Illinois Living Trust — Irrevocable, it is crucial to consult with an experienced estate planning attorney who can explain the legal requirements, tax implications, and specific terms of each type of trust. Creating an irrevocable living trust requires careful consideration and should be tailored to an individual's unique circumstances and objectives.
