Estate planning allows the owner of an estate to distribute it to beneficiaries after passing away. However, one of the common obstacles estate owners face is having to protect those assets from being seized by creditors. Many debts are not forgiven upon a person’s death, so creditors often have a right to settle any outstanding debts from a debtor’s assets before they are distributed to his or her heirs.
One of the ways to protect an estate from creditors is to put it in a trust. While there are several types of trusts, this article will discuss those that can help safeguard property from being snatched up by banks and other lenders. To know which type of trust is right for you, consult an experienced Illinois estate planning attorney.
What Is a Trust?
A trust is a legal entity that assumes ownership of an asset for a certain purpose. When an estate owner transfers property to a trust, the trust becomes the owner of the property.