Your estate plan is a comprehensive outline of how you want your assets managed or distributed, who you want to care for your minor children, and who you want to handle important decisions if you’re unable to make them yourself. With so much on the line, it should come as no surprise that there are a few rules surrounding the creation of these plans that your Illinois estate planning attorney wants you to know before you get started. Let’s take a look at the most important estate planning rules Illinois requires you to follow.
Making a Will
Your will explains your wishes for the management of your assets, the distribution of your property, and other similar components. It’s a legally binding document that the state will honor when you pass away and can take much of the stress off of your loved ones’ shoulders.
To create a will, you must be at least 18 years old or a legally emancipated minor (who is effectively regarded as a legal adult). You must also be of sound mind meaning you’re in full control of your faculties and capable of making important decisions on your own. If you’re deemed incompetent by the court, you cannot create a will on your own.
Creating a Trust
Trusts let you give property to designated beneficiaries either before or after your death. The trust is managed by a trustee who is responsible for overseeing the management and distribution of the assets placed in the trust based on your wishes. Just as with wills, you need to be 18 years old or older, or an emancipated minor to form a trust.
There are several types of trusts that Illinois recognizes as valid. Each offers its own unique benefits and drawbacks, so be sure to speak with your Illinois estate planning attorney before opening one. They’ll help you choose the best option for your needs and goals.
Designating a Power of Attorney (POA)
Power of attorney (POA) statements give someone you trust the right to make decisions on your behalf if you’re unable to do so. The only legal rule for POA is that the individual you appoint must be a legal adult. Typically, people choose their spouse, sibling, adult child, or other trusted individual. If you’re not sure who to appoint, your attorney can help you narrow down your options.
You can have several types of POA, but the most common are medical power of attorney and financial power of attorney. A medical power of attorney gives someone you trust the right to make medical decisions for you if you’re unable to do so. A financial power of attorney. Individuals with financial power of attorney can make financial decisions for you if you’re unable to make them yourself.
Estate Tax Rules
Illinois does have an estate tax that your loved ones may need to pay (typically out of the money you leave them). But this tax isn’t applicable to everyone. The Illinois estate tax only becomes an issue if the estate exceeds $4 million in value. If your estate’s total value is less than $4 million, your loved ones won’t have to worry about the tax.
You’re Not Required to Work With an Attorney
Under Illinois state law, you’re not required to work with an estate planning attorney to create your plan. And if you have a very simple estate with minimal concerns, you may be able to create your estate plan online. But that doesn’t mean you should. Estate planning attorneys can make sure everything is taken care of and can give you advice when you’re not sure how to proceed.
Let Legacy & Life Law Firm Help
If you’re interested in learning more about creating an estate plan or want an expert opinion on documents you’ve already drawn up, working with an Illinois estate planning attorney is a great choice. At Legacy & Life Law Firm, our team is here to help. Contact us today to schedule a consultation.