Creating a will is one of the most important steps in estate planning. It ensures that your assets are distributed according to your wishes, but having a will does not automatically mean your estate will avoid probate. In Illinois, the probate process can still be necessary even if you have a valid will, depending on the size and type of your estate. Let’s break down what happens in Illinois when you have a will, how probate works, and how this process compares to neighboring Missouri.
In Illinois, probate is the legal process through which a deceased person’s estate is administered and distributed. If you have a will, the court will validate it and oversee the distribution of your assets according to its terms. However, not all estates are required to go through probate.
Here’s when probate is typically required in Illinois:
- If the total value of the estate exceeds $100,000.
- If the estate includes real estate that is not jointly owned or held in a trust.
If your estate falls below the $100,000 threshold and does not include real estate, your heirs can use a simplified procedure known as a “Small Estate Affidavit” to avoid probate altogether. This can save time and money for your loved ones. You can also use transfer on death instruments to make sure your assets are not included in your estate.
While having a will doesn’t automatically bypass probate, there are strategies to help avoid it:
- Establishing a Living Trust: Assets placed in a living trust are not subject to probate. The trust allows you to name beneficiaries who will receive the assets directly without court involvement.
- Joint Ownership: Property held in joint tenancy or tenancy by the entirety automatically passes to the surviving owner upon death.
- Payable-on-Death (POD) Accounts: Bank accounts, retirement accounts, and other financial assets with a designated POD beneficiary are transferred directly to that person without probate.
- Transfer-on-Death (TOD) Designations: Similar to POD accounts, certain assets like securities or even real estate (with a TOD deed) can bypass probate with a designated beneficiary.
By incorporating these tools into your estate plan, you can often avoid the need for probate in Illinois.
While Illinois and Missouri share some similarities in their probate processes, there are notable differences that can impact estate planning in each state.
- Probate Threshold in Missouri: In Missouri, probate may be avoided if the estate is valued at $40,000 or less, using a Small Estate Affidavit. This threshold is lower than Illinois’ $100,000 limit, meaning more estates in Missouri may require probate.
- Transfer-on-Death (TOD) Designations: Missouri has a particularly estate-friendly provision called a “Beneficiary Deed,” which allows property owners to designate a beneficiary for real estate. Upon death, the property transfers to the beneficiary without probate. Illinois does not have this exact provision, though it offers similar options through trusts or joint ownership.
- Simplified Probate Options: Both states offer simplified probate processes for smaller estates, but the specific requirements and procedures can vary. Missouri’s streamlined process may be more accessible for certain types of estates.
When it comes to estate planning in Illinois, or Missouri, having a will is a crucial first step, but it doesn’t guarantee you can avoid probate. However, with proper planning—such as creating a living trust or using beneficiary designations—you can minimize or eliminate the need for probate, saving your heirs time and expense.
Compared to Missouri, Illinois has a higher probate threshold, but both states offer tools to streamline the process. The key is understanding the laws in your state and working with an experienced estate planning professional to create a plan tailored to your needs. By taking proactive steps, you can ensure your assets are distributed efficiently and according to your wishes, no matter where you live.
No responses yet