When you make your plans for the future, you want to be certain that no matter what happens before or after your passing, your Illinois business is safely handled by those you trust to manage your affairs - usually your family. You may be advised in this instance to set up an inter vivos trust, but what exactly is this type of trust?
Per the Illinois Department of Revenue, an inter vivos trust is essentially a living trust. This is a trust you set up while alive to benefit another person, often a family member. This is different from a testamentary trust, which only goes into effect upon death. With an inter vivos trust, you are able to allocate assets such as your business holdings to beneficiaries while alive and under terms that you specify.
This can be immensely helpful when creating circumstances that prevent the need for probate court. If you have set up an inter vivos trust regarding your business assets, unless your will specifies otherwise the terms of the inter vivos trust can be instrumental in transferring your business to your children or other family members in honor of your wishes. Once you have specified the beneficiaries of your inter vivos trust, you no longer have to worry about disputes over business transfer or other matters pertaining to distribution of assets to your heirs.
This blog post is meant only as an informational and educational reference, and should not be used as a substitute for proper legal advice.