Marriage and other major milestones in life should trigger emotion—joy or sorrow—as well as reckoning. They are events that estate planning professionals hope people recognize as prompts to reevaluate and document their end of life plans.
It’s never too early to make an appointment with a professional estate planning attorney to discuss your assets, heirs, and final plans. Marriage is the perfect time to make sure your will and estate plans include all of the necessary triggers and language appropriate to document your new situation and provide for your loved ones.
Essential Documents and Timing
Millions of Americans are part of blended families, which can create new considerations for your estate plan. The following documents should be completed as part of your estate plan to provide for the future security of your family:
- A will is the bare necessity for estate planning. If you die without a will, a state probate judge decides how your assets are distributed. They generally give your spouse half of your estate and any children or other family members the other half, (the spouse receives the entire estate if there are no children or other heirs) but this division may not correspond with your wishes. By writing a will and having it legally documented (signed by witnesses), the division of your assets must follow your stated directives.
- Joint tenants with right of survivorship means putting your spouse’s name (or your name) on the deed of your co-owned home. By becoming joint owners, the survivor inherits the property when their partner dies. This change takes place immediately, bypassing the authority of probate court and ensuring the ongoing stability of your loved ones. Consulting with an estate attorney will determine if joint ownership is the right option for your overall plan.
- Beneficiary designations means putting your spouse or another person on your accounts, such as life insurance, savings, and investments, so that they have access and control of the funds when you die. It is another way to bypass the cost and delay of having probate court make decisions about your estate. Keeping these designations updated is key as they can override the information in your will.
- Planning for Future Children may involve funding college accounts or creating trusts with portions of your estate.
In addition, a complete estate plan should include end of life provisions such as Power of Attorney for Healthcare, Durable Power of Attorney for Property, and a Living Will or Advance Directive.
The probate process in Illinois can take 6 months to a year and cost thousands of dollars in fees, depending upon the complexity of the estate involved. Estates worth $150,000 or less and which do not include real estate are eligible for an expedited process.
When an estate is probated, each step of the process is overseen by the probate court but performed by the executor. This is usually a person named in the will, but it can be someone named by the court who is paid a reasonable amount (out of the estate proceeds) for their time. An executor must be prepared to show documentation of any estate-related actions. Their responsibilities include:
- Evaluation of the will’s authenticity
- Estimation of asset values
- Identifying heirs and settling any claims among them
- Identifying and paying creditors and taxes
- Keeping complete and accurate records
- Distributing proceeds of the estate to heirs
- Closing the estate.
Marriage is an opportunity to review any previously-documented end of life plans and make changes where warranted. Estate planners suggest reviewing wills and other documents on a regular cycle, as well as when there’s a major change in status, such as adding or subtracting family members, retirement, selling real estate, or inheriting sums.
Establishing Your Estate Plan
At Legacy and Life Law Firm, we recognize that nearly 40 percent of marriages involve a person who was previously married, creating complicated considerations for estate planning. Bring your questions about inheritances and co-ownership to us. Our professionalism and efficiency will guide you through the documentation of your final wishes and to peace of mind about your estate plans.