Legal Question in Wills and Trusts in Illinois

1. Yes, a married couple without children certainly can use a living trust.

2. No dollar limit.

3. There aren't many restrictions, but one notable exception would be a retirement account, such as an IRA or qualified plan. A retirement account must be owned by an individual. Disposition upon death is controlled by beneficiary designation, which may designate a living trust as beneficiary or may designate individuals or charities.

This is a good question that comes up frequently. The most common way to think of a living trust (or even a will) is with respect to leaving property to the next generation. But what if there is no next generation? The couple is childless.

First, a living trust benefits the married couple while they are alive. It prevents their assets from coming under the control of a court in the event of disability.

Second, a living trust may leave assets to members of wife's family or the husband's family. They need not be children of the married couple. They could be nieces and nephews (still the next generation, right?) or brothers, sisters etc. Some younger married couples even make provisions for living parents. This seems backwards because now we are passing assets up to a previous generation but if it is done properly there is nothing wrong with it. Finally, there are charities that couples may want to include in their dispositive wishes.

Finally, there are also tax planning and asset protection benefits to trust planning. For more information please visit www.legacylaws.com.

Be well.

Three Great Questions.

A living trust certainly can be used by a married couple without children. Having structure when parents pass on is certainly a blessing to children but it is just as big a blessing to other loved ones or to your favorite charity.

There is not limit on how large an estate can be controlled by a living trust. Your trust can hold most of the assets which you now have in your own name or it can hold only those assets you choose for it to hold. Flexibility is important for many people and a living trust can provide flexibility.

There are some assets which should not be transferred to your living trust. Some real estate assets and retirement accounts require special handling. These are issues that can be worked through with your attorney.

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