Consistently rated as one of the best places in Illinois to raise a family, Naperville has good schools and a strong sense of community. Yet living in such a sought-after location isn’t enough to ensure your family’s future security. Busy parents often overlook creating an estate plan.
Estate planning isn’t only for new parents or the elderly. Experienced estate planning attorneys say anyone with a spouse, dependents, a mortgage, retirement accounts, or a life insurance policy should organize those assets and protect them.
Estate Planning Decisions Carry Consequences
Life is busy, but procrastinating too long can have serious consequences for your family members. If you fail to prepare your estate, the state does it for you: dying without a will in Illinois means your assets are distributed according to state probate law. If you are married with children, the assets are divided among them, with half going to your spouse and half to children, even if your children are too young to understand or manage an inheritance. The probate process can also be lengthy and expensive, temporarily freezing assets like bank accounts your spouse needs to manage day-to-day life.
By planning the distribution of your estate and executing a will, you can provide for stepchildren, the partner you leave behind, and other dependents. Your estate can also name a guardian for minor children, streamlining the process.
Naming a Guardian for Your Children
Protecting the future of young children is the single most compelling reason for families to create an estate plan. If a parent dies without a will, Illinois probate court names a guardian to raise any children under age 18. When family members disagree with the court’s choice, conflict often results, potentially prolonging the probate process further. By naming a guardian in their will, a parent directs the process, reducing potential conflict for their family members and children.
Controlling Inheritances Through Trusts
A will is enough for many people of modest means, but when estates are extensive or families have complex circumstances, a revocable living trust provides the additional flexibility necessary to distribute assets as desired. A trust also provides privacy, avoids probate, and can be structured to financially support minor children over time.
When children under age 21 are slated to inherit, estate planning attorneys often tailor payouts over time, rather than turning over a lump sum to a young person not prepared to manage significant sums.
When inheritances are provided through a trust, family members do not have to wait for the probate process to conclude. This saves time and administrative costs, allowing your family access to necessary funds immediately.
Other Aspects of Planning: Powers of Attorney
Often forgotten in estate planning is the opportunity to establish a power of attorney in case of an incapacitating injury or illness. The Illinois Power of Attorney Act allows a designated individual to make medical decisions for you in healthcare situations. These duties include treatment decisions, choosing providers, and end-of-life options.
Under Illinois law, there are four types of advance healthcare directives:
- Healthcare power of attorney
- Mental health treatment preference declaration
- Practitioner Orders for Life-Sustaining Treatment (POLST)
- Living will
Separately, a financial power of attorney is usually necessary, establishing a proxy for paying bills, keeping your mortgage up to date, and handling other financial issues.
Help That All Families Need
Whether your family is blended, includes teens, or has adult children still at home, estate planning is essential. Whether you need a simple will or a more comprehensive plan, establishing your wishes through the necessary legal framework will provide for your family in the future. Call Legacy & Life Law for a consultation about getting started.