Your estate is all the “stuff” you leave behind when you die, including assets like your bank accounts, stock accounts, 401(k), your car, and your home. Setting up your estate plan allows you to choose who should get those things when you die.
If you die without an estate plan, that means that you have died “Intestate” (meaning dying without a will). If you die intestate, the court will determine how your assets will be distributed under state law.
Whether or not your relatives have to go to court to receive your assets depends on the value and type of the stuff you leave behind, and if your heirs are minor children.
Your will outlines your wishes for the assets that you own at your passing. It allows you to name the people you would like to leave something to upon your death; along with naming the person you choose to be guardian for your minor kids; and naming your executor. If you don’t choose, then the court will decide for you.
But most people are surprised to find out that having a will does not avoid probate court!
In Illinois, your will must be filed within 30 days of your death with the probate court in the county in which you resided.
Someone must be appointed by the Probate Court and given authority to distribute your assets. That person will be required to report to the court and receive court approval on the distribution of your assets through public court proceedings.
A trust is a legal entity that can own your assets (while you are alive or at death). The assets in the trust are controlled based on your wishes outlined in the legal document that creates the trust.
Property held in a trust avoids probate court. Your trustee will follow your instructions contained in your trust document for distribution of your assets following your death.
One other thing to remember – your estate plan is not written in stone! You should update your estate planning documents when you have significant life changes, such as getting married or divorced, a birth in your family, or a major health change.
We’ve been here for you for over 20 years, helping our clients make sound decisions for life and legacy. Call us at 630-585-5200 today!
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