Estate Planning and Trusts in Illinois

 Posted on July 08, 2026 in Estate Planning / Probate

Estate planning is the process of deciding what happens to your assets, your family, and your affairs when you pass away or become unable to make decisions for yourself. A trust is one of the most powerful tools available in that process, giving you control over how and when your assets are distributed and helping your family avoid the time and expense of probate court. Whether you are just starting to think about estate planning or want to update your existing plan in 2026, a Kane County estate planning lawyer can help you build something that truly protects what matters most to you.

Who Needs an Estate Plan?

Estate planning is not just for wealthy people. It is for anyone who has people they care about and assets they want to protect. Without a plan in place, Illinois law decides what happens to your property when you die, and those decisions may not match what you would have wanted.

A basic estate plan typically includes a will, powers of attorney for finances and healthcare, and sometimes a trust. Together, these documents make sure your wishes are carried out, your loved ones are protected, and your affairs can be managed smoothly if something happens to you.

Under the Illinois Probate Act, 755 ILCS 5/, assets that do not pass through a trust or another non-probate mechanism have to go through the probate process before they can be distributed to your heirs. Probate takes time, costs money, and is a matter of public record. Many people choose to use trusts specifically to avoid it.

What Is a Trust and How Does It Work in Illinois?

A trust is a legal arrangement where you transfer ownership of your assets to a trustee who manages them according to the terms you set. The trustee can be you during your lifetime, with a successor trustee stepping in when you pass away or become incapacitated.

The people who benefit from the trust are called beneficiaries. You decide who they are, what they receive, and when they receive it. A trust gives you a level of control over your assets that a will simply cannot match.

In Illinois, trusts are governed by the Illinois Trust Code, 760 ILCS 3/. This law sets out the rights and duties of trustees and the protections available to beneficiaries. It provides a solid legal framework that makes Illinois trusts reliable and enforceable.

What Are the Different Types of Trusts Available in Illinois?

There are several types of trusts, and the right one depends on your goals and your situation.

Revocable Living Trust

A revocable living trust allows you to place your assets into a trust while keeping control of them during your lifetime. You remain free to buy, sell, or manage those assets. You can update or revoke the trust whenever your circumstances change. After your death, the person you chose to serve as trustee distributes the trust assets according to your wishes, usually without the need for probate. For many families, this provides a faster, more private, and less expensive way to transfer property to loved ones.

Irrevocable Trust

An irrevocable trust cannot be easily changed or canceled once it is set up. Because the assets are no longer legally yours, they are generally protected from creditors and may not be counted for certain tax or Medicaid purposes. The trade-off is giving up direct control, which is a significant decision that requires careful thought and legal guidance.

Special Needs Trust

A special needs trust helps provide financial support for a person with a disability while protecting their eligibility for certain public assistance programs, such as Medicaid and Supplemental Security Income (SSI). Instead of receiving an inheritance directly, the assets are held in the trust and managed for the beneficiary's benefit. This allows the person to receive financial support without exceeding the asset limits that could cause them to lose valuable government benefits.

Testamentary Trust

A testamentary trust is created through your will and only takes effect when you die. Unlike a living trust, it does go through probate before it is funded. But once established, it works like any other trust in managing and distributing assets according to your instructions.

Schedule a Free Consultation With Our Geneva, IL Estate Planning Attorney

Attorney Deanna Aguinaga Walker brings more than 25 years of legal experience to every estate planning matter she handles. She values the flexibility of running her own practice because it allows her to become personally involved with each client and provide the kind of individual attention that larger firms simply cannot offer. She genuinely enjoys helping clients navigate a wide range of legal matters and is committed to making sure your plan truly reflects your wishes.

Contact a Kane County estate planning lawyer at DLAW, PC by calling 331-222-7978 to get started today.