Blended families constitute nearly 40 percent of all living arrangements in the United States. These occur when one or both parents remarry, adding stepchildren and additional grandchildren to the mix. These can be joyful groups and result in many new friendships but when considering estates and inheritances things can get sticky.
An experienced estate planning attorney can help your family understand Illinois’ laws on inheritance and how adopted children, stepchildren, spouses, and biological children are treated. This insight into the legal standing of each family member will help form estate plans that reflect the family’s values.
How to Make Your Estate Plan Reflect Your Relationships
Illinois state law favors spouses, biological heirs, and legally adopted children when a person dies without a will specifically stating who should inherit their assets. That means even a stepchild raised from infancy (but not adopted) does not have an automatic right to any inheritance.
A will helps the probate court identify legitimate heirs when a person dies. If no will is left, the court must follow state law. State law calls for dividing an estate among the immediate family members, such as the spouse and biological children. If a stepchild has been legally adopted, the state recognizes them as an heir with the same standing as any biological children.
If a person dies without a will and without biological children, state law requires that their estate is inherited by their spouse (in the absence of a spouse, the court searches for the closest blood relative). If the deceased had stepchildren from a previous marriage, those children are not, by law, entitled to a portion of the estate, and the spouse or other blood relative of the deceased gets total control.
Similarly, it is not uncommon for a married couple to leave everything to the surviving spouse. If one dies, their entire estate is controlled by their spouse, who is free to decide how to divide the estate as they see fit. Sometimes, the surviving spouse remarries and their subsequent spouse inherits everything, leaving nothing to their biological or stepchildren.
The Importance of Planning for Your Blended Family
A will is the first step to establishing an estate plan and making your wishes known to your heirs when you die. A legally executed will, witnessed by two uninvolved adults, states who should inherit your assets. This way, stepchildren, grandchildren, and even unrelated friends are remembered and included in the process.
In addition to a will, consider these planning tools:
- Beneficiary designations. By adding a beneficiary to your accounts such as savings, checking, investment, insurance, and pension, you speed up the process of your heirs receiving funds after your death. A will can take months to probate, delaying access to money for property upkeep or funeral expenses.
- Trusts. These are tools that can your investments to grow while removing them from potential claims by creditors, including Medicare (under specific circumstances). They can be used to structure payments to heirs who are too young or inexperienced managing money. Trusts are also not subject to probate court, so they allow the bulk of your estate to pass to heirs privately.
- Gifting. Since Illinois collects taxes on estates valued at $4 million or above, giving your heirs as much as $19,000 each per year, tax free, can help to lower your total estate value while allowing them to enjoy their inheritance early.
Share Your Estate Ideas With an Expert
A well-informed estate planning attorney from Legacy & Life Law Firm can help turn your estate planning ideas into concrete tools. Wills, trusts, and advance healthcare plans are all part of an actionable estate plan. Upon completion, you will be satisfied that your final wishes for your family are followed. Contact Legacy & Life Law for a consultation.