Chicago Minor’s Trusts Lawyer
A minor’s trust is a funded trust that manages and protects a range of assets for a child until that child reaches a specific age. Like many other states, there are different types of minor’s trusts in Illinois, and depending on the specific estate plan that you want to create, it is important to thoroughly consider the various pros and cons of managing different types of minor’s trusts. As such, it can help to have a prominent and experienced Chicago minor’s trust lawyer who will help you draft the trust, help with administration, and ensure a quick and smooth transfer of assets at the declared time (generally, when the minor reaches the age of 18, 21, or 25).
At James C. Provenza & Associates, PC, we have helped hundreds of individuals in the Chicago area with their trusts, and we boast extensive experience and full knowledge of Illinois trust law to provide informed and trustworthy legal counseling regarding your trust. Our goal is to help create and manage a minor’s trust around your estate plan, making sure that the transfer of assets goes smoothly and without conflict.
Overview of Minor’s Trusts
Generally, parents or grandparents create a minor’s trust when they want to leave property to a young person. A minor’s trust also ensures that a responsible adult takes care of the assets or property until the minor is financially responsible. Therefore, within the documentation of the trust, the creator of the trust generally includes a provision that, if the creator of the trust dies, then a trustee will take control of the property until the minor is of age.
2503(c) Minor’s Trust
A common type of trust is the 2503(c) minor’s trust. One benefit of this trust is that it aims to avoid gift taxes. Normally, the federal government provides exemptions for gifts valued at $14,000 or less. However, the IRS does allow this $14,000 exemption to apply to gifts to trusts for minors as long as the trust meets some requirements, including:
- The minor receiving the gifts is the beneficiary of the trust.
- Any income created from the trust, as well as the original assets, are transferred to the minor at the age of 21.
- The minor in question has the right to give away the trust’s assets if he/she dies before the age of 21.
Call James C. Provenza & Associates for Your Minor’s Trusts
Minor’s trusts can be substantially complex, and it is essential to properly draft and manage the trust to optimize the amounts of benefits and mitigate as many risks as possible. Furthermore, it is important to know how to fund the trust throughout the years, how to correlate the trust’s assets with your taxes (and which tax benefits the trust may offer), and how to ensure a smooth asset transfer in the event of your death. When considering a trust for your child or grandchild, Chicago minor’s trust lawyer James C. Provenza can help. To discuss the elements of your estate plan, call our law office today at (847) 729-3939.