Legal Question in Wills and Trusts in Illinois

Your question is a good one and it raises a number of issues. (The following is not legal advice.)

First, do you want your brother to inherit from you when you die? If not, it is better to retain ownership of your property and leave distribution instructions in a living trust.

Second, you can design the living trust so that your brother has authority to transact business on your behalf during your life. When you need his help he will be in a position to access your assets and apply them for your care. But he won't own them. Your assets will remain trust property so that when you die the correct beneficiaries will inherit.

Third, it is never a good idea to transfer an IRA because of immediate income taxation.

Fourth, depending on the size of your estate, transferring your assets to your brother may raise gift tax issues.

Short answer: A living trust with instructions for your care during life and distribution at your death is best.

Guideance from an attorney whose expertise is in estate planning is highly recommended. You may visit our website at: www.legacylaws.com and call for a free consultation.