An estate plan is a comprehensive instruction manual for your loved ones to let them know what to do with your children and your property.
Thus, there are several documents you will need to have on hand to get started.
From our team of estate planning attorneys at Diamond Estate Planning Law, here is what you need to get your estate plan started in Union, Illinois – and why having an estate plan is so important.
Besides giving your family a roadmap of what to do and how to do it, estate planning with a trust, and funding it properly, can usually prevent your estate from entering a lengthy probate process.
In Illinois, if you have any assets worth more than $100,000 and do not have an estate plan, the court system will determine how to allocate and distribute what you have (for a fee).
Without clear direction on who you want to take care of your kids and what to do with your assets, a judge will try to guess what you wanted and what is in the best interests of your children.
For the distribution of your assets, the judge will follow the plan that the politicians in Illinois made for everyone called the laws of intestate succession (the laws that apply when you pass away without a will).
It’s important to note that an estate plan doesn’t just ensure your assets go where you want them to – but that they don’t end up where you don’t want them to be. This can include other “technical” heirs who you wouldn’t want to have access to your assets or children.
That’s why it is imperative to contact our team of estate planning attorneys at Diamond Estate Planning Law today.
A living will is a document that tells your healthcare provider (or hospital) your end-of-life medical care if you become unable to communicate. For example, a living will clarifies whether you want to be on life support, etc.
A good estate plan and organizing everything in a good trust can protect assets from family disputes.
As a professional, you have a lot of personal exposure because of the possibility of malpractice claims. For many professional licenses, you can never get rid of your liability for negligence or malpractice. If you have a claim that is either declined by your professional malpractice insurance or that exceeds the limits, a good estate plan can protect your assets. Things like a land trust with a bank or title company can keep your name out of the public records for your home.
We create trusts that avoid probate (the process of your family going to court after you die). Our trusts clearly explain your wishes to your family and set up protections for minor children and family members on government assistance. Trusts can also direct your family to make charitable donations to causes you care about. Additionally, a trust can make sure specific items (like your grandmother’s wedding ring, a Gutenberg bible, your grandfather’s flag, the vintage Mustang) go to who you want to have them. A trust can spell out your wishes regarding who you want to take care of your children, and even your wishes for your pets. (Because we want to help you make sure Rover still gets his rubber Wall Street Journal every morning!)
Wills spell out your wishes to your family. Like trusts, wills can make clear who you want to inherit what, as well as explaining your wishes for your children and your pets. Unlike trusts, however, your family still has to go to court after you die to access your money and distribute your property the way you wanted them to. Your will also becomes public record, whereas a trust does not.
Diamond Estate Planning can help with wealth preservation by making sure that when someone dies or becomes disabled, proper contingencies are in place. That way, you can control what will happen to your wealth and avoid possible loss or unnecessary legal expenses.
A power of attorney designates a person you trust to make health care or financial decisions for you if you can’t do them yourself. You also designate additional, backup people to step in if you first choice is unavailable. There are multiple types of POAs.
It’s important to note that these arrangements only work when you are alive. If you are your grandmother’s power of attorney and she passes away, you cannot do anything with her property (bank accounts, investment accounts and real estate) without either probating an estate or using a trust that she set up when she was alive.
Parents can set up a health care power of attorney for their children, giving someone other than themselves permission to take the child to the doctor or emergency room. One example could be if you are out of town for a long weekend or a long vacation without your child, or if your child is with a babysitter and you cannot get to the hospital or doctor to get them prompt treatment.
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