What Are The Main Documents Required For A Solid Estate Plan

 Posted on March 20, 2023 in Estate Planning

Sugar Grove Estate Planning Lawyer: Defining What is Estate Planning

Estate Planning is imperative to ensure your assets pass how you wish upon death. Unfortunately, estate planning gets ignored until it is too late. If a person fails to create an estate plan during one's lifetime, the decedent's family and loved ones are left to navigate Probate court, which can be difficult, time-consuming, and costly. The best way to avoid Probate court is to find an attorney specializing in estate planning. An estate planning attorney guides what estate plan is best for you.

Furthermore, an effective estate plan must adequately fund it to avoid going through Probate. Peace of Mind Asset Protection is based in Yorkville, IL, and specializes in estate planning and asset protection. The attorneys and staff will determine your estate's size and help structure a unique estate plan based on your assets. By doing so, the transition of your assets upon your death will pass smoothly and make the process easier for your loved ones.

What is Probate Court?

The probate court oversees the administration and distribution of the decedent's estate. Probate is time-consuming, as some complex estates can take years to settle. It can also hinder family relationships. Conflicts could arise over who should serve as administrator (the individual in charge of handling the estate), who is entitled to funds, and possible contests if the individual died with a valid Will.

Whether an individual died without an estate plan or with only a Will as their estate plan, a Probate must occur to administer the estate. For this reason, it is not recommended that an individual utilize only a Will. Instead, a Trust should be created to avoid Probate court altogether, avoiding unnecessary arguments, high attorney fees, and added stress to the family. 

Estate Planning Package

At Peace of Mind Asset Protection, we set up estate plans that include the most critical documents. These vital documents successfully distribute your estate and, with a few extra steps, avoid Probate Court. Our estate plan includes a Revocable Living Trust, Pour Over Will, Power of Attorney for Property, Healthcare, and a Deed in Trust. This is just the starting point. Our estate plans can be tailored to account for additional asset protection, whether a land trust, a retirement trust, or even an irrevocable life insurance trust.

1. Revocable Living Trust

The most crucial document is the Revocable Living Trust. This document will serve as a mechanism to hold your assets in a trust while also discussing the distribution of assets, Successor Trustees, and even a Children's Trust. The name of the trust will appear on your accounts, the deed to your home, and even retirement accounts. While a Trust can be named anything you wish, some choose a name consistent with theirs. Therefore, a Trust will also name Successor Trustees. These individuals will come forward to manage the assets held in your trust upon your death. They are responsible for paying any expenses out of your estate, collecting your assets, and making distributions according to the terms of your trust. 

An advantage of a revocable living trust is that it is entirely modifiable and revocable while you are alive and have capacity. This is an added benefit because you may experience an unexpected life event that would make it necessary to amend your estate plan.

For a Trust to properly serve its function, the trust maker must "fund" the trust. In other words, the individual must rename accounts in the trust's name, retitle vehicles and homes, and change beneficiaries for retirement accounts and life insurance benefits. If these steps are not taken, no assets are put into the trust, and the individual's estate must still go through Probate to be distributed.

2. Pour Over Will

The Pour Over Will is more of a protective measure. This document provides any assets you may need to remember to transfer into the trust during your lifetime. This document states that you wish to give all of your individually held assets to the trust, and once moved into the trust, the terms of the trust will take effect. This document is unnecessary if the assets were transferred into the trust's name while the individual was alive. However, if needed, the pour-over will be filed with the county court, and a Probate will need to occur. 

3. Powers of Attorney

Illinois recognizes two types of powers of attorney, each necessary in a solid estate plan. The first is a power of attorney for property. This document states who you wish to come forward and act on your behalf concerning financial transactions should you become incapacitated. This individual will have access to your bank accounts and be able to write and cash checks made in your name, so it is essential to pick someone you trust and who is responsible for the money.

The second type is a power of attorney for healthcare. In this document, the individual states who they wish to come forward and make medical decisions on their behalf should they be incapacitated and unable to do so. The agent should make healthcare decisions that align with your best interests, so you should discuss with your agent what your wishes are should particular events occur. 

4. Deed in Trust

We assist in creating a Deed in Trust, a deed that transfers the home's title to the trust's name. By doing so, the house will be owned and distributed according to the terms of the trust. The trust maker should prepare a separate quit claim deed to transfer their real property into their trust or limited liability company ("LLC"). Likewise, a quit claim deed should be prepared to transfer the trust maker's real estate into their living trust. The deed must be completed and recorded if the property is in a different state. Likewise, any real property in the future should be bought in the trust's name to avoid a possible Probate at death. 

5. Additional Documents

The basic estate planning package is fully customizable, and additional documents can be added depending on particular assets. In addition to the above documents, Peace Of Mind Asset Protections assists in creating LLCs, Land Trusts, Irrevocable Life Insurance Trusts, Retirement Trusts, and Third-Party Special Needs Trusts to protect disabled beneficiaries. Our attorneys will advise you of any additional documents that should be prepared to protect your assets fully.

Estate Planning Attorneys Near Sugar Grove, Illinois

Peace of Mind Asset Protection is conveniently located in Yorkville, Illinois, and services Sugar Grove and the surrounding areas of Kane County. We will provide an in-depth consultation to create the best estate plan to fit your needs and can provide follow-up meetings to ensure the proper funding of your trust. To learn more about our services or to set up an initial consultation, call our office at 630-882-2467.