Itasca, Illinois Estate Planning Attorneys

Steve has helped us every step of the way and was in constant communication and went way above our expectations. His expertise was more than we could ask for. Very pleased with his service.

Planning for the future can provide you with peace of mind. When your estate plan reflects your wishes, designates people you trust to act on your behalf, and provides a clear roadmap for your family, you can prevent confusion, conflict, and unnecessary legal proceedings.

An estate plan is a collection of legal tools that should be carefully selected and coordinated to address your specific circumstances. A thoughtfully constructed plan can address what will happen during your lifetime if you become unable to manage your own affairs, and it can determine what will happen to your assets and your family after you are gone. It can anticipate complications before they arise and give your family a path forward while minimizing legal complications and expenses.

At Newland & Newland, LLP, we work with people and families in Itasca and DuPage County to build estate plans that are comprehensive and legally sound while addressing their individual needs and goals. Our attorneys guide clients through every step of the estate planning process, explaining each document in terms that make sense, and making sure every element of the plan works together as a cohesive whole.

Wills and Living Trusts: Two Paths to Asset Distribution

One of the most fundamental questions in estate planning is how your assets will pass to the people and organizations you want to benefit. There are two primary tools that can be used for distributing assets: a last will and testament and a revocable living trust.

Your will is a document that will detail your instructions for how your estate should be distributed after your death. Through your will, you can leave specific assets to named beneficiaries or divide your estate in other ways. You can make charitable bequests, name a guardian for minor children, and designate an executor to administer your estate.

One important limitation of a will is that it does not avoid probate. Your executor will complete the probate process, taking an inventory of your assets, paying debts and expenses, and distributing assets to your beneficiaries. This process can take months, and it may involve legal complications.

A revocable living trust can be used to hold assets that you transfer into it and ensure that these assets will be transferred to your beneficiaries. You will typically serve as your own trustee while you are alive and capable, retaining full control over the assets in the trust. Upon your death, a successor trustee will distribute the assets to your beneficiaries according to the trust's terms. These assets will be distributed without going through probate.

Probate avoidance is one of the key advantages of a living trust. It will also allow for the flexible management of your assets and ensure that your family can maintain privacy as assets are distributed.

Protecting Assets and Preserving Wealth Through Other Types of Trusts

Certain types of trusts can serve specific purposes within a comprehensive estate plan. The right combination of trusts will depend on a family's assets and goals. One of the most common methods families may use to protect assets is through the creation of irrevocable trusts. Assets that have been transferred into an irrevocable trust may no longer be considered part of a person's taxable estate, which can help minimize potential estate taxes.

Unlike a revocable trust, an irrevocable trust cannot be easily modified once it is established. In exchange for a loss of flexibility, an irrevocable trust can provide protection against taxes and creditors.

Special Needs Trusts

When a loved one has a physical or cognitive disability, they may receive public benefits, including Medicaid or Supplemental Security Income. To maintain these benefits, they will need to meet certain requirements, including a limitation on the assets they can own. If a family member leaves an inheritance or makes a gift to a person with special needs, this could disqualify them from important government programs.

The loss of benefits can be avoided by using a special needs trust. This type of trust can hold assets for a person with disabilities and ensure that the assets will be used to enhance their quality of life without making them ineligible for government benefits. The trust can pay for things that government programs do not cover, such as recreational activities, education, transportation, or personal electronics.

Generation-Skipping Trusts

Families with significant assets who want to preserve wealth across multiple generations may benefit from using a generation-skipping trust, which is designed to pass assets to grandchildren or later descendants while minimizing potential taxes. The federal generation-skipping transfer tax, alongside the estate tax, can lead to smaller inheritances if proper planning is not in place. A generation-skipping trust may allow a family to transfer wealth across generations while avoiding losses.

Incapacity Planning: Preparing for the Unexpected

A durable power of attorney for property can be used to address your financial affairs in situations where you may not have the ability to handle these issues on your own. You can name someone you trust who may be given the authority to pay everyday bills, manage investment accounts, or address other financial concerns.

A power of attorney for healthcare can address medical issues and personal needs. You can name an agent who may be able to handle a wide range of decisions, from consenting to or refusing specific treatments, choosing care facilities, or making end-of-life decisions.

Powers of attorney can be crucial for ensuring that your needs will be met in the event of incapacity. If you become seriously ill, suffer a debilitating injury, or experience the loss of your mental faculties due to aging, decisions made ahead of time about the management of your finances and medical care can ensure that your wishes will be followed.

Other Issues a Comprehensive Estate Plan Can Address

An estate plan can address a variety of other concerns that may affect people and families. Business owners may need to consider how their businesses will be managed and how ownership will be transferred to successors after their death or retirement. A succession plan can operate within an estate plan, making sure the business will be transferred to family members or key employees and that it can continue being managed correctly.

Beneficiary designations on retirement accounts, life insurance policies, and transfer-on-death accounts are other important elements to address in an estate plan. These designations will pass assets to beneficiaries outside of the probate process. Our attorneys can help review existing designations and make sure they align with a person's overall estate plan.

Charitable giving can be woven into an estate plan in a variety of ways, from simple bequests in a will to more sophisticated structures such as charitable trusts or donor-advised funds. With proper planning, a person can support causes they believe in while realizing tax benefits.

Itasca Estate Planning FAQs

Contact Our Itasca, IL Estate Planning Lawyers

The decisions you make in your estate plan can affect your family's future for years to come. These decisions will require careful thought, and it is important to ensure that estate planning documents are drafted correctly. At Newland & Newland, LLP, we can provide the legal help you need to establish a comprehensive estate plan or make updates that will meet your family's needs. Contact our Itasca will and trusts attorneys at 847-549-0000 to set up a free consultation and get the peace of mind you deserve.