Our estate planning attorneys Illinois relies on knows that estate planning is not just for the wealthy. Even if you don’t own a home, you have things of value. All of these things together make up your estate. Estate Planning is what you do to make sure those valuables are treated the way you want them to be treated when you’re not there to make decisions about them. You need to have a plan and a great lawyer. Without a plan, your wealth will most likely go through a probate court in a drawn-out, expensive, and very public procedure, with a judge making the ultimate decisions about where your wealth goes. With no estate plan, any family disputes will be played out publicly, possibly damaging family relationships for many generations.
It’s often a mistake for people to think they have to have a large “estate” to prepare a will. If you own property, whether it’s a bank account or real estate, you should consider having an estate plan in the event of your disability and upon your death. What is an estate plan? An estate plan is a plan that passes your assets to whom you want and in the manner you want after your death. However, an estate plan is more than just documents. For example, some of your assets may not even be controlled by your will or trust.
Let’s look at a case study. Mike had a will which left everything to his wife, Sally. It also provided that if Sally did not survive him, it would have set up continuing trusts for his kids.
Mike owned the following assets:
- Family farm worth $2 million, owned in joint tenancy with his sister, Mary
- Retirement plan with $2 million, opened when he was still single
- House, worth $500,000, owned jointly with his wife, Sally
- $5,000 in a checking account
Is this a good plan? Unfortunately, no, it is not. Sally may not get anything! How can this be? Well, first, the family farm, which was owned jointly with Mary, went to Mary, the surviving joint tenant, by operation of law at Mike’s death. The retirement plan went in accordance with the beneficiary designation Mike had put in place before he even met Sally. Since he never changed the beneficiary designation, the beneficiary is still Susan, who was his fiancée at the time he opened the retirement plan. Sally will get the house. However, Mike and Sally refinanced the house when real estate values were high, so the mortgage actually exceeds his equity in the house. Sally gets only the checking account.
What did Mike do wrong? Mike failed to seek the advice of an experienced estate planning attorney. An experienced attorney who focuses on estate planning would have seen the problems with this plan and would have advised a better plan. For example, a better plan would have included changing the beneficiary designation on the retirement plan and changing the ownership of the family farm from joint tenancy to tenants in common. Joint tenancy property passes to the surviving joint tenant, notwithstanding a will, while tenancy in common property does not. Property governed by a beneficiary designation passes to the beneficiary pursuant to the most recent beneficiary designation, notwithstanding a will.
Remember, your assets can pass by ways other than a will:
- By contract or other arrangement, such as trusts, partnerships, and buy-sell agreements
- By operation of law, such as joint tenancy or tenancy by the entirety
- By beneficiary designation, such as life insurance, 401(k)s, and IRAs
An experienced attorney who focuses in estate planning can help you devise a plan so that nothing falls through the cracks. That way, you will have the security of knowing that the assets you’ve built up will be there for your family when they need them most.
How can our Illinois estate planning attorneys help you?
When you are looking for an estate planning attorney, you probably want to know what you should be looking for. Can any attorney help you when it comes to questions about wills, trusts, and assets? The answer is “no.” There is a reason that attorneys have specializations in areas like bankruptcy, divorce, and child custody. The same goes for your estate planning attorney. We know that this is not an easy process for everyone because it is usually a time of reflection on a person’s life and facing the inevitability that comes with death. However, we are here to help you through this process, create a plan that is best for you and your family, and answer any questions you may have.
What can I expect of my estate planning lawyer?
You may just think that an estate planning attorney can help you with your will. This is not the case and you may want help with other legal documents as well. Our team can also be there for you if you are interested in creating a living trust, want to learn more about the probate process, and come up with a plan regarding asset protection so that your beneficiaries can get the maximum amount that you set aside for them. They can also help you create health care directives in the event that you become incapacitated and are unable to make decisions on your own.
What should I be looking for when I want an estate planning attorney?
When you are looking for an attorney, you want to make sure you have the right one for the job. You want to find someone who specializes in estate planning and most importantly makes you feel comfortable and secure. You will be sharing information that you likely will share with very few people in your life, so your attorney should listen to you as much as you need them to and find out exactly what you want out of the process.
Can I draft an estate plan with my spouse?
We encourage you to do what is best for your family and if you would like to see how a joint estate plan can work for you, please speak with us about what your family’s needs are. We can go over the pros and cons of different types of plans and how they will affect your family when they are put into place.