Trusts And Marital Assets In An Illinois Divorce - Russell D. Knight

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From Law Office of Russell D. Knight - In this episode, 'Trusts And Marital Assets In An Illinois Divorce,' we explore how trusts can impact the division of assets during divorce proceedings in Illinois. Understanding how trusts interact with the Illinois Marriage and Dissolution of Marriage Act is essential for determining whether assets placed in a trust are considered marital property under 750 ILCS 5/503. We discuss how the presumption of marital property applies to assets acquired during marriage and what happens when those assets are transferred to a trust.

The episode delves into the distinctions between revocable and irrevocable trusts and their implications in divorce. While assets in a revocable trust may be subject to scrutiny, irrevocable trusts present a more complex situation. We cover key case laws such as In re Marriage of LaRocque, Johnson v. La Grange State Bank, and In re Marriage of Frederick, which illustrate how courts assess fraudulent transfers and determine whether a trust was created to protect assets or to defraud a spouse.

Listeners will gain insight into the concept of fiduciary duty as it relates to trustees, especially when a spouse acts as both trustee and beneficiary, as outlined in Dick v. Peoples Mid-Illinois Corp. This episode also explains the difference between a present property interest and an expectancy interest, referencing In re Marriage of Centioli, and discusses when a beneficiary’s interest in a trust might be waived or preserved in a Marital Settlement Agreement, as seen in In re Marriage of Myers.

Finally, we highlight the strategic considerations of using trusts for estate planning versus divorce planning and the potential red flags that may arise during asset division. Whether dealing with a revocable trust, an irrevocable trust, or navigating claims of fraudulent transfers, this episode provides a clear view of how trusts can influence divorce outcomes in Illinois. Join us as we outline the critical points for those facing the intersection of divorce and trust assets.
Law Office of Russell D. Knight
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