Gardi, Haught, Fischer & Bhosale LTD.

The Ultimate Estate Planning Guide and Checklist for Illinois Residents in 2025

By Gardi, Haught, Fischer & Bhosale LTD
October 15, 2024
estate-planning

Ensure Your Legacy and Loved Ones are Secure

Are you ready to begin estate planning but need help figuring out where to start? This comprehensive guide and checklist will help you navigate the process.

Request a Case Evaluation

What is Estate Planning?

Estate planning involves organizing your affairs in preparation for the end of your life, and it extends beyond simply writing a will. This process helps ensure decisions about your money, property, medical care, and dependent care align with your wishes. It can also help minimize taxes and avoid lengthy legal procedures after your passing.

One of the most significant benefits of estate planning is the peace of mind it brings. Knowing that your loved ones will be cared for and your desires will be carried out, even with a basic plan, can make a significant difference.

Elements of Estate Planning in Illinois

Estate planning typically involves drafting and finalizing key documents, such as wills, trusts, powers of attorney, and living wills. Some individuals even include a letter of instruction to guide their family members through the process.

What is a Will?

A will, or “last will and testament,” is a legal document that outlines how your assets should be distributed after your death. If you die without a will (intestate), Illinois state law will determine the fate of your estate. While your estate will go through probate regardless of having a will, having one ensures your wishes are respected, reducing the time and costs associated with the probate process.

Trusts

A trust allows another person (the “trustee”) to hold assets for future use by the beneficiaries. During your lifetime, you are the trustee, and therefore have complete control over the assets in your trust. Trusts help manage property, mainly when beneficiaries are minors or aim to avoid a lengthy probate process.

Living Trust vs. Testamentary Trust

A living trust (Inter Vivos Trust) becomes effective while you’re alive and continues after death. A will creates a testamentary trust and only comes into effect after death. The critical distinction is that a living trust operates during your lifetime, while a testamentary trust takes effect posthumously.

Revocable vs. Irrevocable Living Trusts

A revocable living trust allows the grantor to make changes, while an irrevocable living trust does not. Once the grantor dies, a revocable trust becomes irrevocable. Many choose revocable trusts to streamline asset distribution without going through probate, but also maintain control of the asset while alive.

Power of Attorney (POA)

The power of attorney (POA) gives another person the authority to make legal, financial, or medical decisions on your behalf when you are unable to do so, such as if you have a cognitive impairment. POA documents are often included in estate planning packages.

Durable POA: This remains effective even if you become incapacitated, ensuring someone can act on your behalf when you’re unable to make decisions.

Limited POA: This grants authority for specific tasks or periods.

Financial POA: This allows the designated agent to manage financial matters. It can take effect immediately or upon incapacitation.

Health Care Decisions

Health care is another crucial aspect of estate planning, and documents such as living wills, health care proxies, and advanced health care directives help ensure your medical preferences are respected.

Living Will: Outlines your preferences for health care, including life-extending treatments and other medical decisions.

Health Care Proxy: Grants someone the authority to make medical decisions on your behalf when you can’t.

Advance Directives: These documents, including HIPAA authorizations, grant trusted individuals access to your medical records.

Tax Planning Documents

Estate taxes in Illinois can take a significant portion of what you leave behind. Consider tax planning when organizing your affairs, mainly on estate, inheritance, and gift taxes.

  • Federal Estate Tax applies if your estate exceeds a certain value at the time of death, currently set at $13.61 million per person in 2024.
  • Illinois Estate Tax applies if your estate exceeds a certain value at the time of death, currently set at $4 million per person in 2024.
  • Gift Tax: You may owe taxes on gifts you make during your lifetime that exceed certain limits. Reducing the value of your estate through gifting can minimize future estate taxes.

Estate Planning Checklist for Illinois Residents in 2025

The best way to start estate planning is by creating a checklist. These steps will help you get started whether or not you decide to hire an attorney.

Take an Inventory

Make a list of your tangible assets (like vehicles, homes, and jewelry) and intangible assets (like bank accounts, retirement accounts, and insurance policies). Include your liabilities, as debts must be paid after your death.

List Your Family Members

Account for the needs of immediate family members and dependents. Your will and life insurance policies can help you plan for their care. Remember to consider any arrangements for pets.

Choose Directives

Decide which legal tools (such as living wills, powers of attorney, or trusts) you want in place. By making these decisions, you’re taking control of your future and ensuring your wishes are respected.

Designate Beneficiaries

Choose the beneficiaries of your estate and any financial accounts. It’s essential to regularly review and update these designations to ensure clarity later on.

Contact an Estate Planning Attorney

Illinois state laws regarding probate, estate, and inheritance taxes vary. Consulting an Estate Planning attorney will help you navigate these matters properly.

After Estate Planning

Once all your documents are finalized, store them securely, and remember to review and update them regularly, especially after major life events such as marriage, divorce, or the birth of a child. Being proactive in updating your estate plan can help ensure it remains relevant and effective.

Frequently Asked Questions

Why is estate planning important?

Estate planning ensures your wishes are followed after death, helps care for dependents, and minimizes taxes and legal costs.

What are common estate planning mistakes?

Failing to have a plan, not properly executing documents, or neglecting to provide for dependents can lead to issues.

Is estate planning only for the wealthy?

No. Everyone can benefit from estate planning, which helps avoid unnecessary probate costs and legal complications.

Key Takeaways

  • Common estate planning documents include wills, trusts, powers of attorney, and living wills.
  • Everyone, regardless of estate size, can benefit from having a will.
  • Estate plans should be updated following significant life events.

Gardi, Haught, Fischer & Bhosale can help with your estate planning questions and concerns and offer guidance with your will. Contact our estate planning attorney, Ann Fischer, today. Request a free consultation below or by calling 847-944-9400.

 
Request a Case Evaluation

Client Testimonials

heading-bottom-graphic
I just wanted to share that I had an excellent experience with Gardi, Haught, Fischer, & Bhosale and more specifically Thomas Haught. Everything went great and I am even more convinced that one does not need a real estate agent to buy a house when you have a good lawyer!
Our team partnered with Gardi, Haught, Fischer, & Bhosale LTD. on a recent transaction, and we appreciated their dedication and professional approach to closing the deal. We’re looking forward to more successful collaborations ahead
We just had great experience with Tom Haught and his paralegal Courtney Kropf. The communication is clear and fast. All emails were replied within 30 minutes. We will definitely work with Tom Haught again.
Was recommended to them from my company. They did an excellent job and always answered all my questions. Were always upfront with all things and made sure I understood everything that was explained to me.
We used the law firm during the sale of our house. We dealt with Mr Haught and Courtney, who made the process very smooth. They were professional, yet very friendly to deal with.I would not hesitate to recommend them to my family and friends.
Our immigration experience with Ann Fischer has been amazing! She has been meticulous, organized and worked on our case in a timely manner. Ann and her team went above and beyond to address all of our concerns and provide a personalized support which made a significant difference during our stressful time.I highly recommend her services to anyone seeking legal representation for their immigration matters.
We have used Tom Haught for two home purchases and one sale over the years and continue to be impressed by his professionalism, responsiveness, and thoroughness. Reasonable pricing too. Highly, highly recommended.
Gardi, Haught is one of professional firm, I have been with G&H since last 8 years in all legal matters.RegardsWaseem Chaudhry
Tom and his dedicated crew recently helped me close on a commercial property, and I must say they did an exceptional job! Throughout the entire process, they were incredibly responsive, attentive to detail, and a pleasure to work with. Their professionalism and expertise made the transaction smooth and efficient. I am thoroughly impressed with their performance and definitely plan to work with them again in the near future. I highly recommend Tom and his team for anyone in need of real estate services!
js_loader

Request a Consultation

heading-bottom-graphic

related articles:

heading-bottom-graphic
Category