New Illinois Living Trusts Law

Now for the first time in Illinois, you can now transfer your marital home into a living trust and have all the benefits of a tenancy by the entirety with your spouse, including the additional benefit of disallowing a creditor who obtains a judgment against just one spouse only, from enforcing that judgment by attaching that spouses one half interest in a jointly held the marital home.

Illinois Spouses or those in a civil union no longer must choose between the protection against creditors provided by tenancy by the entirety and the estate‑planning advantages of a revocable inter vivos trust. A living trust now serves these purposes. The new law also amends section 12‑112 of the Code of Civil Procedure (735 ILCS 5/12‑112) to allow Living Trusts and Illinois Land Trusts to have all of the protections of a Tenancy by the Entirety. As amended, the second sentence of that section now reads as follows:

Any real property, or any beneficial interest in a land trust, or any interest in real property held in a revocable inter vivos trust or revocable inter vivos trusts created for estate planning purposes, held in tenancy by the entirety shall not be liable to be sold upon judgment entered on or after October 1, 1990 against only one of the tenants, except if the property was transferred into tenancy by the entirety with the sole intent to avoid the payment of debts existing at the time of the transfer beyond the transferor's ability to pay those debts as they become due.

New Law Provides New Way to Avoid Probate in Illinois for Real Estate and It's Inexpensive Too

In Illinois you can now leave real estate to designated beneficiaries by creating a transfer on death deed or beneficiary deed. The new law is known as the: Illinois Residential Real Property Transfer on Death Instrument Act. You must sign and record the deed now, but it doesn't take effect until your death. In addition you can take back a revoke the deeded any time, so the real estate at any time and your beneficiary has no present interest in the property.

There are pros and cons to using this means of avoiding probate for real estate in Illinois but it certainly is a method worth considering. See pros and cons.

New Law On Illinois Power of Attorney for Health Care. Perhaps It's Time to Modernize Your Power of Attorney for Healthcare.

For help, contact our attorneys at 630-920-8855.

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