Estate Planning

Who gets all my assets?

1. If you do not have a will or listed beneficiaries, your assets will fall under your state’s Intestate Succession Laws. The state determines how your assets will be distributed with no input from you or your family.

2. In Illinois, stepchildren who are NOT legally adopted do not count as blood relatives and will not receive an inheritance from you if there are other living blood relatives, unless listed as a beneficiary on your accounts or in your will.

3. Click HERE to see Illinois Intestate Succession Rules Illinois Statutes Chapter 755. Estates § 5/2-1

Do I have the correct beneficiary on EACH account?

1. Listed beneficiaries usually supersede wills, so be sure that your correct beneficiaries are listed on each account including bank accounts.

2. This is the general order for how assets are distributed during an estate process:

a. Joint with Rights of Survivorship

i. Assets are immediately transferred to the surviving joint owner, regardless of your will and will avoid probate.

b. Named Beneficiaries

i. Assets like retirement accounts, life insurance, investment accounts, bank accounts, and annuities will usually request named beneficiaries when they are set up.
ii. Named Beneficiaries usually supersedes wills, so ensure that they are up to date.
iii. These will also avoid probate.

c. Assets Owned Individually or Without Named Beneficiaries

i. These assets will go through the probate process and will be distributed according to your will.

Who will make decisions for me if I can’t?

1. Who will pay your bills and make medical decisions on your behalf if you become incapacitated? If you do not have a power of attorney and you become incapacitated, you will have not say in who the court appoints as your deputy or the scope of their powers. Your family may have to pay extra to be appointed as deputy, and waiting for the court to appoint a deputy can take a long time.

a. A medical power of attorney can make healthcare decisions based on your pre-determined wishes.
b. Click this link for a fillable healthcare power of attorney for Illinois
c. A financial power of attorney can pay your bills and make a pre-determined set of financial decisions on your behalf.
d. Click this link for a fillable financial power of attorney for Illinois

Who will take care of my children?

1. If you have minor children, who will take care of them? Are there listed guardians in your will? If not, the state will decide who will receive custody with no input from you. Here are some important considerations when naming a guardian in your will:

a. How many children to you have under the age of majority?
b. Do you want all your children to live together?
c. Have you had this conversation with your chosen guardian?
d. Can your chosen guardian financially and personally handle the increase of dependents?
e. Does your will or trust include provisions to help pay the guardians for their increased living expenses?
f. How old is your chosen guardian?
g. Will your children have to leave their school or town to live with your chosen guardian?
h. Does your chosen guardian have the same religious beliefs and morals as you?

Does a trust make sense for me?

1. This is a complicated questions that can usually only be answered by a trained estate planner or attorney. Here are a few considerations:

a. Do you have a beneficiary who is likely to have any of the following life events: divorce, lawsuit, bankruptcy, loan default?
b. Do your beneficiaries know how to handle a lump sum inheritance or are you nervous about how they will use it?
c. Do you want a say in how your assets are handled for your personal care if you become incapacitated?
d. Do you want to avoid probate to save time and money for your beneficiaries?
e. Do you have a minor child that will need taken care of?
f. Do you want to reduce your possible estate tax bill?

Does someone know where my important documents are?

1. Can your power of attorney or executor quickly find all your important documents in the event of your death or incapacitation?

2. Click this link for a list of important documents, where, and how long we recommend you retain them.