Top Illinois Estate Planning Questions Answered

Did you know that only 40 percent of Americans have a will? Even fewer have a comprehensive estate plan. A surprisingly large percentage of adults simply avoid estate planning or put it off until it is too late. Estate planning is important for anyone, but it absolutely crucial for those with high-value or complex estates. Read on to learn answers to some of the most common estate planning questions.

At What Age Should I Start Building an Estate Plan?

Many people wonder, “Am I old enough to write a will, trust, or other estate planning document?” Those in their 20s and 30s typically assume that they have another 30 or 40 years before they need to worry about estate planning. In reality, it is never too soon to start building your estate plan. No one knows what the future will bring, and sudden illness and injuries happen every day.

If you are a parent, you can use your estate plans to name a guardian for minor children in the event that you and the other parent pass away, create a trust to hold assets on behalf of your child, and much more. You can also use your estate plans to dictate who should be in charge of medical and financial decisions if you are incapacitated and cannot express these wishes yourself.

What is Probate, and Can I Avoid the Probate Process?

When someone has passed away, the last thing surviving loved ones want to deal with is legal red tape. “Probate” is the process during which the court validates the deceased person’s estate, recognizes the authenticity of a will, and authorizes the distribution of assets. Certain estate planning instruments avoid probate and allow assets to be directly distributed to heirs upon a person’s death. Assets held in an irrevocable trust or revocable trust generally do not go through probate. Life insurance and retirement benefits also avoid probate. An attorney can help you understand how to build your estate plans in such a way that your loved ones will not be faced with unnecessary, stressful legal proceedings.

What Does the Estate Planning Process Entail?

The estate planning process will vary significantly from person to person. Your particular needs will depend on the types of assets you own, who you want to inherit those assets, and your personal wishes and beliefs. For some, charitable giving and creating a legacy is an essential part of the estate planning process. Others want to ensure that their children, grandchildren, and great-grandchildren are provided for.

If you own complex assets including real estate, business interests, and investments, estate planning will be much more involved. For example, if you own real estate, you may want to use a qualified personal residence trust (QPRT) to eliminate the value of the property from your taxable estate. If you own a business, you may want to include a buy-sell agreement and focus on creating a business succession plan.

We Can Help You Determine Your Estate Planning Needs

Estate planning can be complicated and overwhelming. Fortunately, you do not have to figure everything out on your own. If you are ready to take charge of your future and begin building a comprehensive estate plan, contact the Gierach Law Firm. We will help you define your estate planning goals and priorities and determine the estate planning instruments that will help you reach those goals. Call our Naperville estate planning lawyers at 630-228-9413 for a confidential consultation.

Sources:

AARP

Investopedia