Estate Planning
Estate planning is crucial for passing on property to your heirs. Without planning, the State of Illinois will determine who will get your property. Most people assume that they can just "leave everything to my children"; but of course, minor children cannot legally deal with money or property without adult supervision. To look out for the best interests of your family, you must do some planning and have the correct documents prepared and properly executed.
General Information about Probate
Probate is the legal process by which the court takes control of your property and determines who is to receive it. Illinois Law states that if you have more than $100,000 of property, a probate estate MUST be opened in county court. Opening a probate estate is very expensive and usually involves many months of court work before any assets can be given to your heirs. For that reason most people want to avoid probate.
Property that is subject to probate includes all of your real estate and personal property. Personal property includes everything from furniture to cars to ownership in a business interest or stock holdings and investments. Property that is not subject to probate would include property that is held in Joint Tenancy or Tenancy by the Entirety or passes directly to a contract beneficiary (e.g. life insurance with specifically named beneficiaries); and all property held in trust. Be careful here though, because property held in joint tenancy or contract often names the spouse as the beneficiary. Although it avoids probate upon the first to die, it does not avoid probate upon the survivor's or beneficiary's death.
Under $100,000 worth of solely owned personal property, probate is not required and your estate may be settled with a "Small Estate Affidavit". Automobiles are usually handled this way with a form that the Secretary of State provides. However, when part of your property includes real estate, probate is usually necessary. There is a new document similar to a deed called "Transfer On Death Instrument (TODI)" which can be used to name a beneficiary to your real property. But again, if you run out of beneficiaries, it could still end up in probate. Also, it is a big mistake to name your "estate" as the beneficiary of any life insurance or other contract beneficiary arrangement. That is the same as saying "take me to probate"!
Currently under Illinois law, the best way to avoid probate is to use a Trust.
Property that is subject to probate includes all of your real estate and personal property. Personal property includes everything from furniture to cars to ownership in a business interest or stock holdings and investments. Property that is not subject to probate would include property that is held in Joint Tenancy or Tenancy by the Entirety or passes directly to a contract beneficiary (e.g. life insurance with specifically named beneficiaries); and all property held in trust. Be careful here though, because property held in joint tenancy or contract often names the spouse as the beneficiary. Although it avoids probate upon the first to die, it does not avoid probate upon the survivor's or beneficiary's death.
Under $100,000 worth of solely owned personal property, probate is not required and your estate may be settled with a "Small Estate Affidavit". Automobiles are usually handled this way with a form that the Secretary of State provides. However, when part of your property includes real estate, probate is usually necessary. There is a new document similar to a deed called "Transfer On Death Instrument (TODI)" which can be used to name a beneficiary to your real property. But again, if you run out of beneficiaries, it could still end up in probate. Also, it is a big mistake to name your "estate" as the beneficiary of any life insurance or other contract beneficiary arrangement. That is the same as saying "take me to probate"!
Currently under Illinois law, the best way to avoid probate is to use a Trust.
General Information about Estate Planning Documents
Wills
Although wills can properly dispose of property at your death, they are only effective upon death. They do nothing for you during your lifetime. If you become unable to manage your own affairs during your lifetime, a will does nothing to help. The best use for wills is to name your children's guardians, and then move all of your property into a trust for them (known as a "pour-over will").
Fees for simple wills and pour-over wills are $100.00.
Fees for simple wills and pour-over wills are $100.00.
Trusts
Trusts are truly the best property management tool available. They are effective immediately to control the property during your lifetime and after your death. You do not have to be rich to have a trust. A trust will make sure that your property goes to the person(s) you want it to go to, and when and how you want it to pass to them. Trusts are very flexible, and are not as easy to contest as a will. Trusts completely avoid probate and can be very helpful in estate tax planning to avoid estate taxes. There are many different types of trusts, including "Living" Trusts, Irrevocable Trusts, Special Needs Trusts, Testamentary Trusts, and Charitable Trusts.
With such a wide array of documents, Fees for the preparation of Trusts vary greatly, depending on your individual needs. However, I charge flat rates based upon previous experience. Generally, they range from $500 - $1,200.)
With such a wide array of documents, Fees for the preparation of Trusts vary greatly, depending on your individual needs. However, I charge flat rates based upon previous experience. Generally, they range from $500 - $1,200.)
Powers of Attorney
Examples of Powers of Attorney are:
General Power of Attorney - gives complete power to someone else to deal with your property immediately.
Special (or Limited) Power of Attorney - gives someone a limited power to deal with a specific piece of your property for a special purpose.
Durable Power of Attorney - gives someone the power to deal with your property ONLY if you are unable to do so for health reasons. Usually requires a doctor's authorization for the power to become effective.
Powers of Attorney also can vary greatly in their difficulty to draft, but generally Fees range from $75-$200.
General Power of Attorney - gives complete power to someone else to deal with your property immediately.
Special (or Limited) Power of Attorney - gives someone a limited power to deal with a specific piece of your property for a special purpose.
Durable Power of Attorney - gives someone the power to deal with your property ONLY if you are unable to do so for health reasons. Usually requires a doctor's authorization for the power to become effective.
Powers of Attorney also can vary greatly in their difficulty to draft, but generally Fees range from $75-$200.
Medical Documents
The Living Will and Health Care Power of Attorney are documents that can help you keep some control over the medical treatment you will receive, in the event that you cannot make treatment decisions for yourself.
Living Will - This is NOT a will. Rather, it is YOUR statement to the world to let others know how you want your health care to be handled in the case when you are terminally ill.
Health Care Power of Attorney - This gives SOMEONE ELSE the power to make all health care decisions for you in case you cannot make those decisions. It cannot override your wishes in a Living Will, so to avoid confusion, if you use both make sure they are consistent.
Which one is best? It can depend on the circumstances. But the Health Care POA is much more flexible and seems to be preferred by doctors and hospitals. These are statutory documents and it is not recommended to change their wording.
Fees - Living Will $50. Health Care POA $75.
Living Will - This is NOT a will. Rather, it is YOUR statement to the world to let others know how you want your health care to be handled in the case when you are terminally ill.
Health Care Power of Attorney - This gives SOMEONE ELSE the power to make all health care decisions for you in case you cannot make those decisions. It cannot override your wishes in a Living Will, so to avoid confusion, if you use both make sure they are consistent.
Which one is best? It can depend on the circumstances. But the Health Care POA is much more flexible and seems to be preferred by doctors and hospitals. These are statutory documents and it is not recommended to change their wording.
Fees - Living Will $50. Health Care POA $75.
To use my services:
Email your questions to KevinWrightJD@gmail.com
or call me at (847) 742-3393
Email your questions to KevinWrightJD@gmail.com
or call me at (847) 742-3393
