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DuPage County estate planning attorney wills and trusts

If you were to ask your children or other family members what you should do about dividing your assets and property upon your death, you would likely get a variety of answers. Some may suggest that you just divide it equally—without offering ways to determine what “equal” means. Others may remind you that you can make any arrangements that you want since it is your property. Of course, chances are also good that the same family members telling you to do whatever you think is best could be the same ones who are offended when they discover that their inheritance is not what they expected it would be. Fortunately, a qualified estate planning lawyer can offer a great deal of insight into planning for the future and, based on previous experience, can even provide advice on how to prepare your family for what is ahead.

Determine Your Priorities

Those who remind you that you have the right to do with your estate what you wish are exactly correct. You certainly have that right. However, it is important to consider how dividing your assets could affect your family and loved ones over the long term. You may decide that you do not really care if family members are upset or offended by your choices since you will be gone, and that too is your right. For many people, the specific property and assets that each heir receives are far less important than maintaining stable, trusting family relationships. Although it is not true in every situation, you may have the power with your estate planning decisions to positively or negatively affect your surviving family. Use it wisely.

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Lombard estate plan lawyerEstate planning can be a complex matter, with state and federal laws to consider, but the initial steps do not have to be complicated. In fact, almost anyone can complete an effective estate plan with the right mindset and good advice from an experienced estate planning attorney. While some estates are more complicated than others, there are basic concepts that apply to virtually every situation.

Know Your Assets

From your real estate property, to the remainder of your retirement plan, to your beloved baseball card collection, it is crucial that you know what you own before you start the estate planning process. Start by gathering detailed documents for all of your financial accounts, including bank accounts, savings bonds, and retirement accounts, as well as your real estate, vehicles, and other large assets. Then make a list of family heirlooms and property that may have value. If necessary, have items appraised so that you know how much you are leaving to each of your heirs.

Determine Who Will Inherit From Your Estate

There are many ways to determine how your assets are distributed upon your death. For example, you could lay out detailed terms of inheritance in your will, or you could establish trusts that give you greater control of the distribution and allow your assets to bypass the probate process. It is also important to determine how you will prioritize your spouse, children, grandchildren, other relatives and friends, and possibly charitable or community organizations. How you distribute your assets is up to you; just make sure you have a plan, because it can save you both time and money when meeting with your attorney.

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DuPage County probate attorneyWhen an Illinois resident dies, his or her estate will often need to go through the process of probate. In Illinois, probate is required to validate and administer the decedent’s will, or to determine that the decedent did not have a valid will in place. Depending on the circumstances, probate can be a long and daunting process, and it may be a source of stress when there are arguments about the estate, but understanding the process can go a long way in helping you through it.

The Role of the Executor or Estate Administrator

During the probate process, an estate executor or administrator manages the assets and debts of the deceased. If there is a valid will, it will usually name the person who will serve as executor. In the absence of a will, the court will appoint an administrator, which will often be the closest surviving family member. Named executors can decline their duties if they are unwilling or unable to fulfill them.

Handling Creditors During Probate

During probate, the decedent’s heirs are not the only people who may be entitled to assets from the estate. Creditors may also come forward to pursue unpaid debts. By law, they must do so within the fixed time period allotted to them. In addition, the IRS must be paid any and all income taxes due. This cannot be avoided by selling assets—in fact, selling assets may be necessary to generate the necessary funds to pay the outstanding debts and taxes. Only then can the remaining assets be distributed to heirs. A final income tax return must also be filed for any assets that earn income during the probate period.

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Lombard IL estate planning attorneyEstate planning can be simple, but most often, it is a bit more complex than most people realize. Regardless of your situation, the best way to ensure your wishes are known and followed after your death is to have the proper documents in place by creating a will and appropriate trusts with the help of a skilled estate planning attorney. It also helps to know some of the most common mistakes made by those creating estate plans, including:

Failing to Plan at All

The statistics are alarming: more than half of all Americans do not have an existing will. Unfortunately, if you die without an estate plan, your assets will be divided according to the intestate succession laws of Illinois. Not only is it highly unlikely that this will happen according to your wishes, but the process of probate can end up chipping away at—and potentially decimating—the assets you have left behind.

Another concerning matter is that, if you should die without a will and have minor children, there is no guarantee as to who will assume responsibility for their guardianship until they become adults. Avoid this common mistake, and take the first steps in creating an estate plan today.

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Lombard IL living trust attorneyMany people associate estate planning with death, and as a result, they often miss out on a truly valuable instrument of asset protection and financial management during their lifetime. A great place to begin learning about and utilizing estate planning is what is known as a “living trust.” This estate planning resource can allow you greater control over the transfer of your assets to your loved ones when the time is right through a mechanism that bypasses the time and expense of probate. To begin benefitting from estate planning, whether through a living trust, a will, or other tools, work with an experienced Illinois estate planning attorney.

Functions of a Living Trust

Unlike a will or a testamentary trust, which become effective only upon your death, a living trust can become effective while you are living. For many, a primary reason to create a living trust is to protect assets from the probate process. This form of lawful asset protection is accomplished when legal ownership of the assets is transferred from you—the “grantor”—to the trust under the control of a “trustee.” The trustee holds the assets in trust for those you who have selected to benefit from them—the “beneficiaries”.

Importantly, the law even allows you to be named as the trustee of your own living trust, which permits you to retain full control of the assets held in the trust during your lifetime. You have the ability to add or remove assets, modify the terms of the trust, or revoke the trust as you see fit. It is also important to name a successor trustee who will take over management of the trust assets in the event of your death or incapacitation. After your death, the assets can then be distributed to your named beneficiaries according to your wishes.

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