There are several reasons why Illinois residents may wish to consider using trusts in their estate plans. Trusts offer testators far more control over how and when their assets will be distributed, which can be an important consideration if their heirs are young, have acted irresponsibly with money in the past or are struggling with alcohol or drug problems. Trusts allow estates to avoid the public and sometimes protracted probate process because assets put into trusts are owned by the trust and not the estate, and they also offer protection should testators become incapacitated.
Entrepreneurs in Illinois may have a difficult time fully separating their personal finances from those of their business, especially when they are working on starting a new company. For example, while a new business may have no credit history at all, many business owners have excellent credit scores earned through years of on-time payments and intelligent management of debt. Therefore, they may be tempted to use their personal credit as an asset when seeking credit for the business such as a bank loan.