Estate planning is crucial for ensuring the management and distribution of your assets according to your wishes after your death. A comprehensive estate plan can provide peace of mind and protect your family’s future.
If you’re ready to plan your estate, you should know about some essential documents, including your will, living trust, power of attorney, and letter of intent. An experienced Chicago estate planning attorney can help you put these documents together.
Last Will and Testament
A last will and testament is the cornerstone of any estate plan. Per Illinois law, you must sign your will with two witnesses present who are not beneficiaries. The will outlines how you want your assets distributed upon death and allows you to:
- Name beneficiaries for your property and assets
- Appoint a guardian for minor children
- Select an executor to manage your estate
If the will does not name an executor, the courts will appoint one to manage your estate.
Living Trust
A living trust, also known as a revocable trust, allows you to protect and manage your assets for your benefit while you are alive. Upon your death, the trust transfers your assets to the designated beneficiaries without going through probate. Benefits of a living trust include:
- Avoiding probate court
- Maintaining privacy regarding your estate
- Potentially reducing estate taxes
Living Will
A living will, also known as an advance directive, clarifies your preferences for medical treatment if you face terminal illness or incapacitation. This document specifies whether you want life-sustaining treatments and helps guide your healthcare proxy and medical providers.
Durable Power of Attorney
A durable power of attorney (DPOA) authorizes an agent to manage your financial and legal affairs and remains in effect even if you become incapacitated. The agent designated by this form can make decisions on your behalf when you cannot.
Healthcare Power of Attorney
A healthcare power of attorney lets you designate someone to make medical decisions for you if you cannot. While it is a type of durable power of attorney (DPOA), it differs from a traditional DPOA in its scope. This document is essential for ensuring your healthcare preferences are respected and that someone you trust is making decisions in your best interest.
HIPAA Release Form
A HIPAA release form authorizes healthcare providers to share their medical information with designated individuals. This release form is crucial for ensuring your healthcare proxy and family members have access to the information they need to make informed decisions about your care.
Account Beneficiary Designations
Certain assets, including life insurance policies, retirement accounts, and payable-on-death (POD) accounts, require designated beneficiaries. To seamlessly transfer these assets, you should ensure these designations are current and align with your overall estate plan.
Guardianship Designations
If you have minor children, including a guardianship designation in your will is essential. This clause appoints someone you trust as your children’s guardian if you can no longer care for them. You can also designate a guardian for adult dependents who require ongoing care due to disability.
Letter of Intent
A letter of intent provides additional guidance for your executor and loved ones. While not a legally binding document, those addressed in your letter of intent will usually follow the reasonable requests within it. This document can include your wishes for your funeral arrangements, personal messages to family members, and any other instructions you want to leave behind.
Asset Inventory
Creating an inventory of your assets is a practical step in the estate planning process that can make distributing your assets go more smoothly. This document should list all of your assets, including:
- Bank accounts
- Investments
- Real estate
- Personal property
- Debts and liabilities
An asset inventory helps your executor locate and manage your assets more efficiently.
Contact a Chicago, Illinois, Estate Planning Attorney Today
Proper estate planning documents are vital for honoring your wishes and protecting your loved ones after your passing. To ensure these documents are filled out and submitted correctly, consulting with an estate planning attorney is essential.
If you’re in the Chicago, Illinois, area, call (312) 201-0900 for a consultation with one of the experienced attorneys at Peck Ritchey, LLC. We’ll work with you to tailor your estate documents to your specific needs and circumstances, giving you peace of mind and confidence that your family will be in good hands. Our law firm can help you with your case. Contact us today to arrange a consultation.