Godfrey Illinois Law Blog

One of the easiest ways to avoid probate in Illinois is to not leave behind anything that needs to go through that process. Essentially, this means having all your assets set up to automatically transfer to another person upon your death. Many people use trusts or have joint ownership of an asset. If you have a spouse, assets typically go directly to him or her when you die. However, you may have other situations with assets where these things cannot apply. In those cases, you may consider a payable on death account.

According to the Illinois General Assembly, a payable on death account is when two or more people jointly own an account and sign an agreement that states upon the death of the last owner, the account transfers to designated beneficiaries. For example, you and your business partner own a savings account and you sign a payable on death document with the bank. You both name beneficiaries. Your partner dies first. When you die, the account transfers to the beneficiaries you named.

Setting up an estate plan can be a daunting task for all sorts of reasons. Some people, for example, may be unsure of which type of estate plan to choose. A trust may be ideal for some people (and there are various types of trusts, too), while a will may work out better for another. Once you have figured out which type of estate plan to move ahead with, many other considerations could surface, such as trying to decide how to distribute your assets. This can bring up some incredibly difficult decisions, especially those which involve family members, and it is crucial to be mindful of how your decisions may affect those you love.

You may be dealing with a number of issues which could influence how you will divide your estate among those you love. For example, one of your children may be estranged from you, or you could worry that leaving a portion of your estate to one of your family members may actually be counterintuitive. If you have a family member who is addicted to drugs or gambling, you may need to be careful when it comes to deciding how to leave them with some of your estate.

At one point, you may receive a letter from the IRS informing you of an audit on your Illinois business. This can be unnerving, but it does not have to be if you prepare for it. One thing to keep in mind, according to H&R Block, is the process can be lengthy depending on the method by which the IRS conducts the audit. The agent may do your audit by mail, at a local IRS office or in person. In person audits typically take the longest.

Expect that during the process, the agent will check all your reported income and go over all your accounts to verify the validity of any deductions and credits. The IRS wants to make sure you have reported all your income and taken only credits and deductions for which you qualify. Since the agent looks over all of your documentation, it might take up to a year to complete the audit process.

You have heard people discuss the importance of creating an estate plan, but you brush it aside because you do not yet have a family or dependents of any kind. In fact, you are doing relatively well for yourself and are confident in your ability to manage your own life in the current moment. At Farrell, Hamilton & Julian, P.C., we have helped educate many people in Illinois about the importance of investing in an estate plan early on. 

Perhaps the largest misconception about estate planning is that it is intended for people only if they are aged and nearing their final years. On the contrary, no matter how young you are, beginning the steps to creating an estate plan can be incredibly beneficial and rewarding. Developing a well-rounded estate plan that caters to your lifestyle and desires can take time to put together, but when done at a stage of your life where you are not stressed, you can spend time thinking about the details. Should you wish to modify anything down the road, it will be much easier to do so than to be trying to create a plan when your life has changed drastically and you are in a bind.