A Look at Planning for Your Family
The following information is a free preview of the contents included
in The Financial GourmetTM.
Table of Contents
Will
Revocable Living Trust
Illinois Probate
Questions and Answers
Will
Any person who is 18 years of age and is of sound mind and memory use a will to
bequeath the real and personal estate, which he or she has at the time of their death.
A Will addresses three primary concerns after your death:
- Who receives your estate - Legatee
- Who administers your estate - Executor
- Who cares for your minor children - Guardian
A properly drafted and executed Will can:
- Specify how to dispose of property in your name through the probate process.
- Designate your preference for who will be appointed as guardian of any minor children.
- Designate whom you want to run your probate estate.
A Will cannot:
- Dispose of property titled in joint tenancy or property subject to a valid beneficiary
designation.
- Help your estate avoid probate.
- Provide for management of your assets during disability or incapacity.
- Keep the affairs of your estate private.
- Effectively disinherit a surviving spouse.
Revocable Living Trust
The living trust is a written document, usually drafted by a qualified estate-planning attorney
that sets forth how you, as the trustor, want your property managed and distributed during
your life and after your death.
There are several important parties to every trust:
- Trustor: this is the person that decides on the terms of the trust and transfers property
into the trust.
- Trustee. The person(s) (or entity) that takes legal title to the property and is entrusted
to carry out the terms set forth by the grantor in the trust document.
- Beneficiaries. The person, persons or entities that are entitled to receive property
from the trust (income and/or principal distributions).
- Successor Trustee
In the case of a typical revocable living trust, the grantor, initial trustee and initial beneficiary
are usually the same person -- you. This is commonly referred to as a "self declaration of
trust".
After it is drafted and executed, it is necessary "fund" the trust to make it effective. The trust
only controls property when it is specifically titled in the name of the trust. Real estate, bank
accounts, stocks and many other types of assets can be re-titled to change the ownership
into the name of the trustee of the trust. Funding a trust is a very important part of the estate
planning process. However, this part of the process is very often neglected. A living trust that
is not properly funded will probably not achieve all of your goals.
Illinois Probate
Several sections of Illinois Probate Code (Probate code may vary from state to state):
| (755 ILCS 5/5-1) |
When the will of a testator is probated or when the estate of a decedent or missing person
is administered in this State, the probate or the administration shall be in the court of the
county determined as follows:
(a) In the county where he has a known place of residence;...... |
| (755 ILCS 5/6-1) |
(a) Immediately upon the death of the testator any person who has the testator's will in his
possession shall file it with the clerk of the court of the proper county...............
(b) If any person wilfully alters or destroys a will without the direction of the testator or
wilfully secretes it for the period of 30 days after the death of the testator is known to him, the
person so offending, on conviction thereof, shall be sentenced as in cases of theft of property
classified as a Class 3 felony by the law in effect at the date of the offense |
| (755 ILCS 5/14-1) |
(a) Within 60 days after the issuance of his letters the representative of
the estate of a decedent or ward shall file in the court a verified inventory of the real and
personal estate which has come to his knowledge...........
(b) The inventory must describe the real estate and the improvements and encumbrances
thereon, state the amount of money on hand and list all personal estate. |
Questions and Answers
| Can everyone have a Will? |
No - In order to have a Last Will and Testament, the
Testator (person making the will) must be of legal age and of "sound mind and memory". To be
competent to make a will a person must understand what a will is, what he/she owns, and
who are relatives who would normally inherit such as children and spouse. |
| Which type of estate planning document will help avoid the probate process? |
Revocable Living Trust - A properly written and funded Revocable Living Trust will help avoid the
probate process. Assets that have been properly placed in the trust are exempt from
probate and will pass to the specified beneficiaries in a private and timely manner. |
| What will a Revocable Living Trust will provide for? |
It will provide for Guardianship Appointment, Probate avoidance,
Privacy, and Flexibility of wishes/intentions. A properly written and funded Revocable
Living Trust is one of the most comprehensive estate planning documents for the average
person. By working with a professional, you can be assured of protecting your estate and
your family. |
| Probate, a court supervised process, is designed to do what? |
It is designed to:
- Appoint a representative to collect the decedent's assets
- Pay the decedent's debts
- Distribute the remainder of the decedent's assets
- Be governed primarily by state law, and secondarily by local county procedure
Probate is a court process designed to provide supervision for the
administration and distribution of a decedent's estate. This process can be time
consuming, costly, and inconvenient. |
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