Lincolnshire, Illinois Estate Planning Lawyers

I am completely satisfied with my experience at Newland & Newland. Working with Katrine and the other staff was low stress to accomplish my estate planning and hopefully in the future a couple real estate transactions.

When planning for the future, it is important to put thoughtful consideration into issues such as how your assets will be distributed, who will make decisions on your behalf if you become unable to do so, and how your loved ones will be cared for after you are gone. Unexpected events can occur at any time, and having a comprehensive estate plan can provide you with peace of mind. You will be able to make sure your wishes will be honored and your family will be protected during difficult times.

Estate planning involves much more than deciding who will receive property after your death. It can address tax considerations, healthcare decisions, guardianship arrangements for minor children, and strategies to preserve wealth for future generations. At Newland & Newland, LLP, our lawyers can help you develop a comprehensive estate plan that will fit your unique circumstances. We will provide you with compassionate guidance during what can be an emotionally challenging process, and we will create legally sound documents that will help you accomplish your goals.

The Importance of Estate Planning

Without a proper estate plan, Illinois law will determine how your assets will be distributed to your heirs. The default rules that will be followed may not align with your personal wishes. For example, if you die without a will and are survived by a spouse and children, your spouse will receive half of your estate, and your children will share the other half, regardless of whether this division is what you would have wanted.

Estate planning allows you to maintain control over how your assets will be distributed. You can specify which beneficiaries will receive particular items or amounts, create conditions on inheritances, provide for charitable giving, and minimize potential conflicts among family members. If you have minor children, you can use your estate plan to name guardians who will raise them if you are unable to do so. These decisions are far too important to leave up to the courts.

Your estate plan can also address what will happen if you become incapacitated because of an injury, a serious illness, or cognitive decline. Without the proper documents in place, your family may need to take steps to establish guardianship before a loved one will be able to manage your affairs. These proceedings can be time-consuming, expensive, and emotionally difficult. A comprehensive estate plan will include documents that designate trusted people to make financial and healthcare decisions on your behalf, avoiding the need for court intervention.

Keeping Your Estate Plan Current

Creating an estate plan is not a one-time event. Instead, it is an ongoing process that will require you to perform periodic reviews and make updates as needed. Your family's circumstances may change, and your estate plan should reflect your current situation. Major life events that may provide the opportunity for an estate plan review include marriage or divorce, the birth or adoption of children or grandchildren, the death of a beneficiary or another person named in estate planning documents, significant changes in the assets you own, relocation to a different state, or changes in tax laws.

Our attorneys can help you review your estate plan every few years. We will make sure you understand how evolving laws, changing family dynamics, or other issues may be addressed through updates to your documents or new strategies for protecting your assets.

The Role of a Will in an Estate Plan

A will serves as the foundation of your estate plan. It will provide legally binding instructions for the distribution of your assets after your death. In your will, you will name an executor who will be responsible for administering your estate. This person will gather your assets, pay debts and taxes, and distribute property according to your instructions. Selecting a trustworthy executor is crucial, since they will need to handle these matters responsibly and show good judgment. You can name alternate executors in case your first choice is unable or unwilling to serve when the time comes.

If you have minor children, your will provides the opportunity to nominate guardians who will care for your children if both parents die. While courts will make final decisions about guardianship based on the child's best interests, judges will give significant weight to the directions provided by parents in their wills. Failing to name a guardian may leave this up to the court, which could result in your children being left in the care of someone you would not have selected.

Using Trusts to Manage and Distribute Assets

Trusts are versatile planning tools that can be used for many different purposes. Unlike wills, which only become effective upon death, trusts can operate during your lifetime and continue after your death, providing continuity for the management and distribution of your assets. Understanding the different types of trusts that may be used can help you determine what steps you can take to achieve specific goals.

Living Trusts

Revocable living trusts are among the most commonly used types of trusts. A living trust will be created during your lifetime. You can transfer assets into the trust, and you will typically serve as the trustee, ensuring that you can manage your property. Because a living trust is revocable, you will retain the right to modify or dissolve it at any time during your life.

One primary advantage of revocable living trusts is the ability to avoid probate. Assets held in the trust will pass directly to your beneficiaries according to the terms of the trust, and no court involvement will be necessary. This can save your family a great deal of time and expense. It will also help you maintain privacy, since wills will become public once they are filed in probate court, but trusts will remain confidential. If you become incapacitated, a successor trustee that you have chosen can immediately step in to manage your assets without the need for guardianship proceedings.

Irrevocable Trusts

As their name suggests, these trusts generally cannot be modified or revoked after they are created and funded. By giving up control over assets transferred into irrevocable trusts, you can remove those assets from your taxable estate, which may help to reduce estate taxes. Irrevocable trusts can also provide asset protection, as property in these trusts will usually be beyond the reach of creditors.

Special Needs Trusts

If you have loved ones with disabilities, you may need to take steps to ensure that they will be protected. Many government benefit programs that are available for people with special needs have strict limits on assets and income. Leaving assets directly to a person with disabilities may disqualify them from receiving benefits. A special needs trust will allow you to provide for a beneficiary with disabilities, ensuring that assets are used for specific purposes without affecting the benefits they can receive.

Charitable Trusts

If you wish to support charitable causes while also benefiting your family members, charitable trusts can provide you with tax-efficient options for philanthropic giving. Charitable remainder trusts may pay income to you or other beneficiaries for a term of years or for life, with the remaining assets passing to charity. These trusts can provide income tax deductions, remove assets from your taxable estate, and allow you to support organizations while receiving income during your lifetime.

Charitable lead trusts work in reverse, paying income to charitable organizations for a specified period, after which the remaining assets will pass to family members. These trusts can transfer wealth to heirs while reducing taxes and supporting charitable causes. Our attorneys can explain the options for using charitable trusts, and we can help you determine what steps you can take to achieve your goals.

Powers of Attorney and Planning for Incapacity

In addition to addressing how your estate will be handled after your death, your estate plan can provide guidance about what should happen if you become incapacitated. Powers of attorney will allow you to designate a person who can act on your behalf in specified circumstances.

A power of attorney for property will authorize someone you choose to manage financial matters on your behalf. They may take steps such as paying bills, managing investments, conducting transactions, managing real estate, and handling business affairs. The agent you choose should be someone you trust completely, as they will have control over your financial affairs.

A healthcare power of attorney can designate someone who can make medical decisions for you if you cannot communicate your wishes. This document will allow the person you choose to consent to or refuse medical treatments, choose healthcare providers, and make other types of decisions. You can provide guidance in the document about your preferences, ensuring that your wishes will be followed correctly.

Other documents known as advance directives can address how end-of-life matters will be handled. A living will can express your wishes about life-sustaining treatment if you have a terminal condition or are in a permanent unconscious state. You may also create a do-not-resuscitate order or mental health directive to address specific situations. By making decisions about these issues ahead of time, you can provide clear guidance for your loved ones during emotionally difficult circumstances.

Frequently Asked Questions About Estate Planning

Contact Our Lincolnshire, IL Estate Planning Attorneys

Creating a comprehensive estate plan can provide you with peace of mind. At Newland & Newland, LLP, our attorneys can guide you through the estate planning process and help you make decisions that will protect you and your family both now and in the future. Contact our Lincolnshire will and trust lawyers at 847-797-8000 to set up your free consultation.