When I’m talking with my clients about how often to review their estate planning documents, I always recommend they review all financial accounts; how they are titled and who are the listed beneficiaries.  A good habit to get into is to do an annual review. I personally like to do mine at the beginning of each year, but it really does not matter at what point in the year you do it.

The most overlooked financial consideration can be keeping current with the named beneficiaries.  Commonly known as the “pay on death” or “Transfer Upon Death” designation, the named beneficiaries on financial instruments are essential.  When you or a family member dies, this alone can be the biggest help, or detriment, for your spouse or executor of your estate. Read more…

Let’s be honest, estate planning can be complicated.  So many major decisions must be made and so many documents should be completed.  The thing about estate planning is that each individual or family’s estate plan can be designed to fit their needs.  No two estate plans need be alike.

One of the most versatile documents in the state of Illinois estate planning is the revocable living trust.  A revocable living trust (or an RLT in the estate planning world) is a trust created and funded during your lifetime that you retain the power to amend or revoke.  You transfer your assets into the trust but retain complete control over any asset you put into the trust.  Upon your death, your successor trustee you designate in the trust document, will distribute the assets in your trust in the manner you have directed through the trust terms. Read more…

If you have had your estate plan drafted recently and that plan included a revocable trust, your job is not quite over yet.  One of the most important things must then do is fund your trust.   If you do not fund your trust, the trust document and all your estate planning could be useless.

There are two ways to fund your trust: 1) Transfer ownership of a particular asset out of your name individually to yourself as trustee of your trust; or 2) Make the trust the beneficiary if the asset is an account or instrument that has a beneficiary designation as an option for transferring the asset upon your death.  It is a fairly simple process, but it does take time and can be forgotten about if not done right away.  Remember, if you do not do this simple task, your trust will not “own” anything, and your distribution provisions in your trust won’t mean anything because your trustee won’t have anything to distribute.  If, when you die, your assets aren’t in your trust, the only way for your heirs to get them distributed is to open a probate case with the probate court, and that totally defeats the purpose of having a trust. Read more…

n the aftermath of a divorce, updating your estate plan is rarely a top priority. Many people are emotionally drained, overwhelmed, and focused on simply getting through the next day. Unfortunately, failing to update your estate plan after a divorce can lead to consequences that are both unintended and avoidable.

One of the most common—and most troubling—outcomes we see occurs when a recently divorced individual passes away unexpectedly without updating their estate planning documents. In those situations, assets may still pass to an ex-spouse under an outdated will, trust, or beneficiary designation—precisely the result most people are trying to avoid.

The first and most important step after a divorce is to revoke your existing will or trust and create new documents that reflect your current wishes. Most estate plans created during a marriage leave the bulk of assets to a surviving spouse. Once a divorce is finalized—or even while it is pending—that structure is often no longer appropriate. Read more…

Choosing a guardian for your children might be the hardest question to answer when completing your estate plan. Determining who the guardian of your child is is a significant life decision but also a deeply personal one. There are many considerations to think of when deciding who the best choice would be for your children. Let’s take a deeper look at what a guardian is and how you should choose one.

A guardian is a person who looks after, cares for and is legally responsible for someone unable to manage his or her own affairs. There are three main situations when a guardian is needed: for a disabled person, for an elderly person who is no longer able to care for themselves, or for a child under 18 whose both parents become incapacitated or deceased. Read more…