Estate planning is an important step in securing your financial future and making sure that your assets are distributed according to your wishes. In Illinois, this can involve creating a will, a trust, powers of attorney and healthcare directives. Whether your goal is to reduce estate taxes, protect assets, or care for loved ones, a strategic plan can offer you and your family peace of mind.
A financial advisor can guide you through the process and align your financial goals with your estate plan.
1. Create a Valid Will
To create a valid will in Illinois, it must meet certain legal requirements. The will must be in writing, signed by the person making it (the testator), and signed by at least two credible witnesses. Illinois does not accept handwritten, unwitnessed wills (holographic wills) as valid, so a will that doesn’t follow these formalities may be considered invalid.
A will can also get invalidated in Illinois if there is undue influence or if the person lacked mental capacity at the time of signing. Any changes to the will must also follow the same legal formalities. Consulting an estate planning attorney can help make sure your will is thorough and complies with Illinois law.
2. Keep Your Estate Plan Up to Date
Life changes like marriage, divorce, having a child, or the acquisition of significant assets can require you to review your estate plan. Updating your plan regularly with a financial advisor can help prevent legal issues and make sure that your loved ones are provided for as you intend.
Additionally, changes in tax laws and financial regulations can also impact your estate plan. Staying informed about these changes and adjusting your estate plan accordingly can help minimize tax liabilities and maximize the inheritance left to your beneficiaries.
3. Create a Trust and Appoint a Trustee
A trust can offer you many benefits, including avoiding probate, reducing estate taxes and protecting your privacy. Decide which type of trust best suits your needs then consult your financial advisor or estate planning attorney to set one up.You’ll need to decide on a trustee who will be responsible for managing the trust’s assets and executing its terms. The trustee should be someone competent you can rely on to handle the responsibilities involved.
4. Create a Guardianship Plan for Minor Children
Creating a guardianship plan for minor children involves legally appointing a guardian who will be responsible for the care and upbringing of your children if you are unable to do so. It’s important to choose someone who shares your values and parenting philosophy.
Additionally, it’s advisable to formalize your guardianship plan in a legal document, such as a will, to avoid any potential disputes or confusion. Consulting with a legal professional can help make your plan compliant with local laws and documentation. You should also remember to review and update your guardianship plan regularly so that it reflects your family’s current needs and circumstances.
5. Communicate Your Estate Wishes
You should communicate your estate plan decisions to your beneficiaries. Discussing this plan with family members and other stakeholders can help prevent misunderstandings. These conversations should cover the reasoning for your decisions, such as why certain assets are allocated in specific ways or if you change the executor of a will.
Bottom Line
Creating an estate plan in Illinois can include a will and involve setting up a revocable living trust to manage estate taxes. It’s important to work with a legal or financial professional to avoid disputes among heirs and make sure that all documents are compliant with state laws and requirements. Reviewing and clearly communicating your estate plan can also help protect your assets.
Estate Planning Tips
- A financial advisor can work with you to help create a personalized estate plan that will manage and distribute your assets. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
- If you prefer to create an estate plan on your own, make sure you avoid these common DIY estate planning pitfalls.
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