How to Leave an Inheritance for Your Children in Illinois
For families in Illinois who have accumulated substantial assets, leaving an inheritance for children is a common decision. Leaving an inheritance can be a substantial financial boon for some people, and it can help ensure that they are taken care of after the parents’ passing.
However, leaving an inheritance is a big decision that requires significant planning and careful consideration of how to best accomplish your goals. Specifically in Illinois, some laws and regulations must be followed to ensure that the estate assets are being distributed according to your wishes.
In this blog, the estate planning team at Diamond Legal takes a look at what you need to do to make sure that your wishes are followed and that your assets are distributed exactly as you want, following your passing.
The Basics Of Estate Planning in Illinois
Estate planning is the process of planning the distribution of property and other assets after your death.
It generally involves one or more components, including creating a will, establishing trusts, and designating beneficiaries for various insurance policies, retirement, and investment accounts. By taking the time to create an effective estate plan ahead of time, you can ensure that your assets are legally bound to be distributed following your wishes.
How To Leave An Inheritance For Your Children In Illinois
Here are some of the important elements involved in leaving an inheritance for your children.
Creating A Will
Your will is a legal document that is crafted by a legal professional and details how you want your assets to be divided or distributed after your passing. The will is the foundation of any solid estate plan and allows you to designate specific beneficiaries for your assets, name an executor to manage your general estate business, and even appoint a guardian and custodian for your minor children.
Choosing An Executor
An executor is someone you pick to be responsible for managing your entire estate after your passing. They will be responsible for paying any debts that remain after your passing, distributing your assets, and ensuring that your final wishes are carried out. Your choice for executor should be someone responsible and highly trustworthy, as well as organized since a large part of the estate management will be paperwork and court filings.
Establish Trusts
A trust is a legal arrangement that allows you to designate assets to be used for a specific purpose. The assets are transferred to the trust and are subsequently managed by a trustee on behalf of the beneficiaries. Some trusts can be changed and even revoked while the grantor is still alive, often called living trusts, and there are irrevocable trusts that acquire ownership of the assets, and cannot be revoked or changed later.
Designate Policy Beneficiaries
Another big step in making sure that you leave your children an inheritance is designating them as life insurance policies as beneficiaries. This goes for retirement accounts and any investment accounts as well. These types of accounts usually aren’t specified in the will and need to be managed separately.
Manage Taxes & Get Professional Help
Several types of taxes may apply to inheritances in Illinois, such as estate taxes, inheritance taxes, and even income taxes. This means without proper planning, you could be leaving your children a giant tax liability. Using an experienced estate planning attorney, however, can help you minimize any applicable taxes, and ensure that your entire estate plan is created properly and implemented correctly.
Let Diamond Legal Help Protect Your Children With An Inheritance In Illinois
Estate planning isn’t easy, but partnering with Diamond Law means you’ll have generations of experience working for you and your family. We’ll make sure your plan is exactly what you want so that your estate can be handled without any legal issues later on. Reach out to Diamond Legal today to get started.
DISCLAIMER: Any information contained herein is solely for informational purposes. While it is important that you educate yourself, nothing herein should be construed as legal advice or create an attorney-client relationship. For specific questions, we urge you to contact a local attorney for advice pertaining to your specific legal needs.
