Estate Planning Law Firm Schaumburg IL
Estate Plans – Why You Should Have One
An estate plan might sound like something that only a wealthy person needs to have, certainly not every low-middle income family, right? Not exactly. As an estate planning law firm in Schaumburg, IL might tell you, nearly everyone can benefit from an estate plan.
What is an Estate Plan?
An estate plan is simply an extension of the steps you take for setting up a will. Having a will is essential. However, it doesn’t always go quite far enough. There are more components that you might need to complete to make sure that you or your loved ones will be taken care of in the event of your death or an accident.
Here are a few of the things that an estate plan addresses. If you have any further questions, you can call an estate planning law firm in Schaumburg, IL.
- Custody of your children if you cannot care for them before they are adults
- Your choices (if you wish), for the medical care you will receive if you are incapacitated and cannot make decisions regarding that care
- The selection of a person to make medical decisions for you if you are unable to do so
- The choice of a person to make financial decisions and pay your financial obligations from your accounts if you are unable to do so
- How to reduce the costs of estate taxes and probate (the fees associated with transferring your assets through a will)
Why Would You Want an Estate Plan?
If you become incapacitated, and there is no directive, the decisions about your medical care will be made without your input. You and your spouse won’t be able to choose who cares for your children or pets in the future. The courts will most likely be assigned the task of making decisions about your finances and paying your financial obligations. Finally, your assets will go into probate. That process is where a judge must rule your will is valid. It is a costly, slow process that can make your family wait over a year and lose up to 5% of the assets in your estate. If no will exists, a judge will decide who inherits what based on the laws of intestacy in Illinois.
Steps to Take
The best step to take for creating an estate plan is to speak to an estate planning law firm in Schaumburg, IL. Creating an estate plan isn’t much different than creating a will. However, a revocable trust may fit the various pieces of an estate plan better.
Revocable trusts have the same features of a will in terms of naming beneficiaries and gifts, but they allow you to go further. In a trust, you can stipulate what money can be used for; for example, ordering specific funds for a child’s education, or a house being for an aunt’s retirement. You can also put in medical instructions (a medical directive or a living will), choose a trustee (person to make decisions), set up care instructions for someone with special needs, and more.
If you are interested in finding out more about estate planning, contact an estate planning law firm in Schaumburg, IL.today.