Revocable Trust for Single Individual
(Trust(s) for Children) (IL)

Summary

This template is a revocable trust for use by an unmarried individual as part of a generational wealth transfer plan for the settlor's children. Upon the settlor's death, assets are held in trust for the benefit of the settlor's children. This template contains practical guidance, drafting notes, and alternate clauses and optional clauses. This template includes options for either (1) a shared "pot" trust for the benefit of the settlor's children collectively, or (2) separate share trusts for each of the settlor's children. The default pot trust provisions distribute all of the trust assets to the settlor's children in a single pot trust, known as the family trust in this agreement, upon the settlor's death. The trustee will administer the assets of the family trust until such time as the youngest child reaches age 25. The trustee has broad discretion in providing for the children and is not required to treat them equally. When the youngest child reaches the age of 25, the trustee divides the family trust assets into individual trusts for each child. The purpose of this trust arrangement is to avoid unjustly enriching beneficiaries who have already received the benefit of support through most of their life while younger minor beneficiaries still have a longer period of need. A pot trust permits the trustee to dictate the spending based on each of the children's needs by enabling the trustee to use and manage the assets for the benefit of the children. Alternatively, separate share trusts may be desirable when the settlor wants each of his or her children (or issue of a predeceased child) to share equally in the settlor's estate, and when the settlor wants to provide for management of estate assets until his or her children reach a certain age. This template provides alternate separate share trust provisions that allow for stages of payouts at ages 25, 30, and 35, but can be modified to provide for additional or fewer stages, as well as to terminate the trusts at an age either older or younger than 35. All distribution provisions should be carefully crafted to reflect the client's wishes. A revocable trust is one element of a comprehensive probate avoidance strategy in the state of Illinois. The most common reason a settlor may prefer to avoid probate is privacy. The revocable trust also includes elements of disability planning, as assets held in trust can be managed by the trustee without a judicial determination of incapacity. In addition to the creation of the trust, the settlor will need to fund the trust in order avoid probate. To assist your client with funding, once he or she gives you a completed questionnaire, you should provide a checklist to convey the additional action required to coordinate the estate plan beyond executing the documents. This includes, for example, recording new deeds for real property, updating beneficiary designations with investment, retirement, checking, and savings accounts, and more. This trust template is intended as a general drafting aid for nontaxable estates and will require modification according to the particular circumstances of the settlor and the beneficiaries. You should use this template in conjunction with a pour over will. For a pour over will, see Will (Married or Single Individual) (Pour Over to Revocable Trust) (IL). For related templates, see Revocable Trust for Individual with Spouse or Partner (Pot Trust for Children) (IL) and Letter to Client (Funding Revocable Trust) (IL). For an in-depth discussion of trusts, see Characteristics and Uses of Trusts (IL) and Requirements and Restrictions on Trust Purposes and Administration (IL). For a detailed discussion of probate avoidance, see Estate Planning Strategies and Devices (IL).