Understanding state-specific estate planning laws is essential when planning for the future of your family and your assets. Estate planning in Texas, for example, is not the same as Illinois estate planning.
The following overview covers the basics of estate planning in Illinois. However, changes to Illinois estate planning laws can influence the process. Check in regularly with your Illinois estate planning attorney so they can alert you to these changes when they arise to ensure your plans align with the law.
What You Need to Know About Probate
The Illinois Probate Act of 1975 establishes the process for ensuring that a will is legally valid before distributing a deceased person’s estate to their beneficiaries. Key points regarding probate in Illinois include:
- Probate is not always necessary. For example, probate may be unnecessary if the decedent didn’t own any assets that were solely theirs. If they jointly owned all their assets with a spouse, probate may be unnecessary. In addition, probate might be unnecessary if the assets that the decedent solely owned don’t amount to more than $100,000.
- If an estate is less than $100,000 and the decedent didn’t own any real estate, the estate administrator could skip the formal probate process with a Small Estate Affidavit. This is a sworn statement in the form of a document with which the estate administrator can gain access to the estate’s assets to pay debts and disburse money to the deceased’s beneficiaries.
- There are ways to keep most of a person’s assets out of probate, even when they are substantial. For example, they can place their assets in a trust.
- The probate process begins when the executor named in the decedent’s will files the will with the appropriate court.
If probate is necessary, the estate executor or a court-appointed administrator will have to complete and submit various documents, sometimes with the help of a legal professional familiar with the process.
Illinois Has an Estate Tax
Illinois is one of several states that has its own estate tax. An estate tax is a tax on the estate of someone who has passed on. Before their beneficiaries receive their inheritances, the executor of the estate must file an estate tax return and pay the government what the estate owes in taxes.
The estate tax doesn’t apply to all estates. As of this writing, the estate tax in Illinois only applies to estates worth $4,000,000 or more. However, the Illinois estate tax threshold could change in the future.
Joint Tenancy with Right of Survivorship in Illinois
Joint tenancy with right of survivorship (JTWROS) is one way spouses (or others) can both own certain assets, like the family home, checking and savings accounts, or vehicles. Both parties to the joint tenancy have the right to use and access assets held in joint tenancy. When one spouse dies, the other spouse automatically receives full ownership of joint tenancy assets. Other heirs will not have a claim to these assets.
However, JTWROS is not a substitute for a will. A will is still necessary to name an executor for the estate, to appoint a guardian for any minor children, and to outline who will receive any assets the deceased does not own in a JTWROS.
Estate Planning in Illinois Guards Against Disputes
Disputes can arise among family members during probate. Consider the following examples:
- Someone may claim another party unfairly influenced the decedent, causing them to change their will so that it favors another beneficiary.
- Parties might claim the executor of the will has made errors or engaged in some form of wrongdoing when fulfilling their duties.
- In some cases, interested parties might suggest the language of a will isn’t clear.
- A decedent may not have left a will. If that happens, Illinois’s rules of intestate succession determine how the deceased’s estate is distributed, which could result in some people the deceased would have provided for getting none of the assets at all.
The above examples highlight the importance of thorough estate planning in Illinois. If you take the time to create a clear and formal plan for your estate, there will be less of a chance that your heirs will find themselves embroiled in disputes later.
Contact an Illinois Estate Planning Lawyer
Hopefully, this overview has provided you with useful information about estate planning in Illinois. However, it’s essential to remember that estate planning laws are complex.
That’s one of many reasons to enlist the help of a professional when drafting a will, placing assets in a trust, and taking other steps to ensure your wishes are carried out after your death. At Peck Ritchey, LLC, an Illinois estate planning lawyer is available to help you handle all steps of this process. Learn more about what we can do for you by contacting us online or calling (855) 328-5787 today.