Do you have a Will? Or a Living Trust? How about joint accounts or jointly owned real estate? Have you named beneficiaries on your life insurance policies and retirement plans (IRAs, 401Ks)? Chances are you have at least one, if not all, of these things. If so, do you understand who will get what at your death?
Last Will and Testament
Your Last Will and Testament (or “Will”) only disposes of assets that are titled in your individual name at your death. If such assets total over $100,000 in value, or if you own any real estate in your own name at your death, then probate will likely be necessary to transfer such assets to the beneficiaries named in your Will.
Revocable Living Trust
A Revocable Living Trust (or “Living Trust”) will only control the disposition of assets that are titled in the name of the Living Trust, or payable to the Living Trust, upon your death. Thus, if you have executed a Living Trust, you must be sure that you have taken the necessary steps to fund your trust by properly titling your assets and naming such trust as the beneficiary, as appropriate, so that your Living Trust will actually work the way you intend.
Jointly-Owned Assets
Bank accounts, stocks, real estate, and any other assets titled jointly with right of survivorship will pass by operation of law to the surviving joint owner, regardless of what your Will or Living Trust provides. Don’t assume that the person you added as a joint owner for convenience to help you during your life will then share the asset with other family members at your death. Even if they decide to do so, there could be costly tax or other consequences to them and your other family members.
Payable on Death (POD) Beneficiary Designations
Hopefully, you have named primary and contingent beneficiaries on all of your retirement plan accounts and life insurance policies. These accounts and policies will pass to the named beneficiary, regardless of what your Will or Living Trust states (unless your estate or Living Trust is named as the beneficiary). If any of these beneficiaries are minors, a guardianship estate will need to be opened for such beneficiary. If you haven’t checked your beneficiary designations recently, you may be surprised who you named years ago when you opened the account or purchased the policy.
Comprehensive Estate Planning
It is important that you coordinate all of your estate planning documents, titling of your assets, and beneficiary designations to be sure that your intended beneficiaries actually receive what you want them to receive at your death. Contact our office to schedule a no-charge initial consultation with one of our experienced estate planning attorneys. We will address all of these issues, and more, to be sure that your final wishes are carried out.
Should you have any questions about estate planning or would like to schedule a free initial consultation with one of our experienced estate planning attorneys, please contact Waltz, Palmer & Dawson, LLC at (847)253-8800 or contact us online.
Waltz, Palmer & Dawson, LLC is a full-service law firm with various areas of service to assist your business, including: Employment Law, Intellectual Property, Commercial Real Estate, Litigation and general Business Law services. Individual services include Estate Planning, Wills and Trusts, Probate, Guardianship, Divorce and Family Law, Collaborative Divorce & Mediation.
This article constitutes attorney advertising. The material is for informational purposes only and does not constitute legal advice.
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Rolling Meadows, Illinois 60008
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