10 NEW IL Beneficiary Deed Benefits

  1. If you are an Illinois residential real property owner, beginning January 1, 2012, you can designate a beneficiary to receive your home, condo or co-op, upon your death, much the same way you can name beneficiaries for your life insurance policies and financial accounts thanks to the new “Beneficiary Deed” law.
  2. Even though a “Beneficiary Deed” shares many qualities of a traditional deed, it is not actually a deed.  At David E. Trice, Attorney at Law, we use the term Beneficiary Deed, because we find it to be a more pleasant and accessible way to say Transfer on Death Instrument.
  3. The purpose of the law is to give Illinois homeowners a convenient way to pass residential real property outside of probate court upon the death of the homeowner.
  4. In general, most Illinois residential real property can pass by “Beneficiary Deed”, including:  SINGLE FAMILY HOMES; APARTMENT BUILDINGS WITH FOUR FLATS OR LESS; AND CONDO and CO-OP UNITS.
  5. Because death is the triggering mechanism that transfers the real property interest, only a natural person who owns the appropriate type of real property can effectuate a Beneficiary Deed in Illinois. However, basically, any entity that can legally hold an interest in Illinois real property can be the beneficiary of your Beneficiary Deed, including: people, corporations, partnerships, limited liability companies, estates,  trusts and charitable organizations.
  6. You can name single or multiple beneficiaries; and create a contingency plan in case your beneficiary disclaims your bequest or precedes you in death.
  7. Unlike your Will or Trust, which you could misplace, your Beneficiary Deed is publicly and permanently recorded.
  8. If you change your mind about your beneficiary, your Beneficiary Deed can always be revoked.
  9. Because a Beneficiary Deed does not transfer your property interest during your lifetime, no ownership interest or control over your property transfers to your beneficiary until after your death.
  10. Beneficiaries can easily accept the transfer of the property you have given them without the bother, burden and expense of the probate process.

The list above reflects just a few benefits of the new “Beneficiary Deed” law in Illinois. Your circumstances are unique, so an “Illinois Transfer on Death Instrument” may not be right for you. If you want an estate plan that fits your needs and situation, call David E. Trice, Attorney at Law at (773) 233-3303 to structure your estate plan your way.

December 23rd, 2011 News Comments Off on 10 NEW IL Beneficiary Deed Benefits

3 Illinois Estate Scenarios

H, an Illinois resident, dies WITHOUT a valid Will. After all appropriate claims against H’s estate are settled, H has $50,000 remaining in his estate.

How much will H’s heirs receive if, at the time of H’s death, H is married to W with 2 children, C1 and C2?

In Illinois, if the decedent has a surviving spouse and descendants, then the surviving spouse receives 1/2 of the decedent’s probate estate and the decedent’s lineal descendants receive the other 1/2 of the decedent’s probate estate, per stirpes. Therefore:

W inherits $25,000
C1 inherits $12,500
C2 inherits $12,500

How much will H’s heirs receive if, at the time of H’s death, H is married to W with no children?

In Illinois, if the decedent has a surviving spouse and no descendants, then the surviving spouse receives the decedent’s entire probate estate. Therefore:

W inherits $50,000

How much will H’s heirs receive if, at the time of H’s death, H is unmarried with 2 children, C1 and C2?

In Illinois, if the decedent has no surviving spouse but the decedent has descendants, the decedent’s lineal descendants receive the decedent’s entire probate estate, per stirpes. Therefore:

C1 inherits $25,000
C2 inherits $25,000

The above examples are basic and they show what happens to an estate when a person dies without a Will in ILLINOIS. YOU are unique, so the “ILLINOIS Statutory Estate Plan” may not be right for you. If YOU want an estate plan that fits your needs and situation, call David E. Trice, Attorney at Law at (773) 233-3303 to structure YOUR estate plan YOUR way.

October 16th, 2010 News Comments Off on 3 Illinois Estate Scenarios

The 23 estate asset categories

The IRS maintains statistics for estate taxes filed. The estate tax is primarily based on the value of assets included in your estate. The IRS groups assets into the 23 categories listed below:

  1. Cash
  2. Cash management accounts
  3. Personal residence
  4. Other real estate
  5. Closely held stock
  6. Publicly traded stock
  7. Unclassifiable mutual funds
  8. State and local bonds
  9. Federal savings bonds
  10. Other Federal bonds
  11. Corporate and foreign bonds
  12. Bond funds
  13. Limited partnerships
  14. Insurance, face value
  15. Insurance, policy loans
  16. Retirement assets
  17. Real estate partnerships
  18. Other non-corporate business assets
  19. Farm assets
  20. Depletables / intangibles
  21. Mortgages and notes
  22. Art
  23. Other assets

Call David E. Trice, Attorney at Law at 1 773 233 3303 for more information about the assets in your estate.

March 29th, 2010 News Comments Off on The 23 estate asset categories

Who decides how your bodily remains will be disposed in Illinois?

In Illinois, unless your wishes are written and properly executed in a Will, a Power of Attorney for Health Care, or a format substantially compliant with the Crematory Regulation Act or the Disposition of Remains Act, then the following person(s), in order of priority, will decide how your remains will be disposed:

  • 1st – Your spouse at the time of your death.
  • 2nd – Your children who are eighteen or older.
  • 3rd – Your adult kin of closest degree.
  • 4th – Any other person willing to assume legal and financial responsibility for disposing of your remians. 
  • 5th – The state of Illinois.

In Illinois, if no one assumes legal and financial responsibility for disposing of your remains, then a state official such as a public administrator, medical examiner, coroner, state appointed guardian, or any other public official charged with making your final disposition arrangements.

Any disputes among those listed above must be resolved in a court of proper jurisdiction.

For more information on making arrangements for the disposition of your bodily remains call David E. Trice, Attorney at Law at 1 773 233 3303.

March 25th, 2010 News Comments Off on Who decides how your bodily remains will be disposed in Illinois?

The 3 requirements of a valid Will in Illinois

A Will drafted in Illinois can be a powerful legal instrument – when executed properly. If your Illinois Will does not include all three of the elements below, your Will is not valid and will not be admitted in an Illinois probate court.

Here are the three requirements necessary for your Illinois Will to be admitted in an Illinois probate court.

  1. Your Illinois Will must be in writing.
  2. Your Illinois Will must be signed by you (or someone in your presence and acting upon your direction). Your signature should accompany a statement declaring that the execution of your Will is something that you are doing freely and voluntarily. You must be 18 or older and of sound mind and memory.
  3. Your Illinois Will must be attested to by TWO or more qualified witnesses. In your presence, the witnesses must sign a truthful statement declaring they were present when your Will was signed and that they believed that you were of sound mind and memory when your Will was signed.

Wishes that you place on a Will that is not admitted in Illinois, will never be legally enforced in Illinois.

Call David E. Trice, Attorney at Law at 1 773 233 3303 for more information about properly preparing and executing your Will.

Links: My Will Preparation Process

March 25th, 2010 News Comments Off on The 3 requirements of a valid Will in Illinois