Watch the discussion on our YouTube Channel: Protecting Your Legacy-One Lunch Break at a Time- Trusts in Georgia & Illinois: Key Differences
What a Trust Is—and Why Funding Matters
At its core, a trust is a legal arrangement where one person (the trustee) manages property for the benefit of someone else (the beneficiary). If you appoint a trusted person to hold and manage assets for another, you’re describing the central idea of a trust.
- Control vs. Protection. A revocable living trust lets you keep control—you can change terms and remain the decision‑maker. By contrast, many irrevocable/asset‑protection trusts work precisely because you give up control; the trust becomes a distinct legal entity, which can create creditor/Medicaid protections but also separate tax filings.
- Funding (Retitling). A beautifully drafted trust that isn’t funded—i.e., assets retitled into the trust or directed by beneficiary designations—is functionally an empty box. Funding errors are among the most common reasons families end up in court despite having a trust.
For a step‑by‑step view of how our firm onboards estate planning matters, see: Understanding the Nonemergency Estate Planning Intake Process at Our Firm
Probate Avoidance: Illinois vs. Georgia
Why do so many families choose a trust? A primary goal is to avoid probate—the court process to transfer title after death. The state you live in changes the planning math:
- Illinois. If you die with more than a set amount of assets titled just in your name—or any sole‑titled real estate—your estate is headed to court. That’s why Illinois plans typically stress thorough funding of the trust to keep assets under the “small estate” threshold outside probate. Even with “summary” options, a full estate can still take 9–12 months (or longer if contested).
- Georgia. The “small estate” threshold is much lower, so thoroughness is even more critical. Unfunded property can trigger probate, which can stretch 1–2 years with meaningful court costs.
For background on probate‑avoidance tools and when to update your plan, you might like these Greenwood Law posts:
What Typically Goes In the Trust—and What Usually Doesn’t
During intake we inventory everything you own and how it’s titled. Most non‑retirement assets (bank/brokerage accounts, non‑qualified investments, real estate) normally move into the trust. Many retirement accounts (401(k), IRA, annuities) are not retitled to a revocable trust; instead, we use beneficiary designations to coordinate with your overall plan. The key is aligning titles and designations so nothing “falls through the cracks.”
If you’re new to the process—or planning remotely—see our primer on electronic wills and remote witnessing (when available under state law): Electronic Wills & Remote Witnessing
Trustee Powers & Privacy
Properly drafted trusts give your trustee the power to handle accounts, sell real estate, pay bills, and provide for you in the event of incapacity—within the guardrails of the document. Importantly, the trust itself generally stays private, unlike probate filings. That privacy can be a major advantage when distributing an estate or managing sensitive family matters. We often customize provisions to your values—education incentives, milestone distributions, and robust spousal support clauses so the survivor isn’t cash‑starved after the first death.
Taxes: Irrevocable Trust Brackets and State Estate Tax (IL vs. GA)
Irrevocable trusts are subject to compressed federal tax brackets; income retained at the trust can hit the highest marginal rates at relatively low dollar amounts. Careful drafting can allow distributions to beneficiaries so income is taxed at individual rates when appropriate.
Georgia currently has no state estate tax; you still consider federal rules. Illinois has a separate estate tax with a $4 million exemption and no portability between spouses—so a plan that balances assets (or uses trust tax planning on the first death) can help preserve both spouses’ state‑level exemptions.
Do We Still Need a Will If We Have a Trust?
Yes—what we often call a pour‑over will. It acts as a safety net to funnel stray assets into your trust. But remember: a will doesn’t avoid probate by itself, so the goal is still to keep assets out of the will’s path via trust titling and beneficiary designations.
Related Reading on Greenwood Law
- Estate Planning Intake Process
- Electronic Wills & Remote Witnessing
- Wills, Trusts & TODI (Avoiding Probate)
- All Wills & Trusts Posts
For a broad look at our practice areas and service regions (Rock Island & Chicago, IL; Atlanta, GA), see our homepage: greenwood.law
Ready to Talk About Your Plan?
We help individuals, families, and business owners tailor plans that fit their goals—while respecting the differences between Illinois and Georgia law and coordinating assets across states.
Website: https://www.greenwood.law
Phone: (855) 528‑6022
Contact us online to schedule a consultation.
Disclaimer: This post provides general information and is not legal or tax advice. Laws change and vary by jurisdiction; please consult an attorney licensed in your state about your specific circumstances.