Estate Planning Frequently Asked Questions
What is a Will or Trust?
A Will is a legal document that appoints an executor to handle your final affairs after you pass away as well as designates your beneficiaries (the people who inherit your money when you are dead). A Trust does the same thing as a will, but the mechanism is different. A Trust is similar to a setting up a personal corporation for yourself and your family. You will designate who your successor trustee is, and that is the person who manages your affairs once you pass away and will identify your beneficiaries or who will inherit what from you when you are dead.
What is the difference between a Will and Trust?
There a lot of differences between the documents and how they are managed despite them doing similar things. The main differences are:
Level of detail
Which do I need - a Will or a Trust?
We try not to steer our clients in one direction or another when it comes to deciding between a Will or Trust. Wills are cheaper to form in the beginning but because Probate is both timely and expensive, a Will ends up costing more in the long run than a Trust. Trusts tend to be lifetime documents, meaning once established they exist forever but need to be updated as your life changes. During your free initial consultation, our attorneys can help explain more in detail the differences between the two documents and help you come up with a plan that fits your needs and your budget.
Why do I need a Will or Trust? Is it required?
No – it is not required to have a will or Trust in the state of Illinois. Wills and Trusts are helpful for grieving families when they lose a loved one. They not only spell out exactly who is to get what, but they provide clarity and direction about how many assets a person has, who they want to help raise their children, and what charities are important to them.
What happens if I die, and I don’t have a Will or Trust?
Your loved ones will have to open a probate case with the local Court and the intestacy statutes of Illinois will govern who gets your money now that you have passed away. Typically, money is awarded to legal spouses and children (both biological and adopted, and then to brothers and sisters and parents after that. If no one is able or willing to act as an Executor, the Court will appoint one and their fees will be deducted from the estate.
What is transfer of death instrument (TODI)?
A Transfer on Death Instrument (TODI) is a document that gets recorded on your property, much like a Deed. Instead of transferring the property immediately to the Grantee like a Deed does, the TODI become activated upon the death of the last to die of the Title-holders. Once activated, the TODI transfers all interest in the property to the beneficiaries listed so that the home can be held, or sold, without going through the probate process. This is the easiest and most beneficial to those people who do not have a lot of financial assets or who wish to keep their home out of probate.
How much is an initial consultation?
The initial 30-minute consultation is free. Additional consultations beyond that and prior to hiring us for services will be billed hourly at $300 per hour or will be included in the package you choose.
What do I need to bring with me to the initial consultation?
If you have any wills or trusts (no matter how old), you should bring those with you. Otherwise, we will send you home with homework and information that we need to move forward depending on the direction you choose to go in. We will typically ask you a list of questions at your first appointment as well, here is a link to those questions:
How are the documents formalized once completed?
Once we get final drafts completed, you will come to the office in person, and we will witness and notarize your signatures on all documents. Once they are signed and witnessed as required by law, they are valid documents.
Is my Will or Trust only valid in Illinois?
No. Illinois wills and trusts are accepted in every jurisdiction in the United States of America. However, probate rules in states vary and therefore an Illinois trust will look different than a trust drafted in North Carolina. If you plan to move out of state permanently in the near future, we recommend you setup your estate plan with an attorney in the location you plan to move to.
What assets should be in my Trust?
All assets over $50,000 except for IRAs, checking accounts and vehicles. The beneficiary of those accounts should be listed as the name of your trust. As an example: Lauren’s investment account with Ameritrade does not have her husband listed as the beneficiary. It has the “LoMonaco Revocable Trust” listed as the beneficiary. When Lauren dies, her husband becomes the sole trustee and beneficiary of that Trust and therefore of her Ameritrade account.
What assets should I change for my Will?
Wills cannot hold assets while you alive or dead, so you do not need to change anything to adjust for your will. However, you beneficiaries on your account should match your beneficiaries in you will.
How long does it take to complete this process?
It depends on how quickly you provide us with the information we need to get everything drafted for you. Typically, from start to finish it is 1-2 months process.
What if I die before I sign my will or trust?
It is not valid until it is signed, notarized, and witnessed by two people who cannot inherit from you. If you pass away before the document is fully executed, it is invalid and holds no merit in any Court.
Why do I need to hire a lawyer to draft my Will or Trust? There are a lot cheaper options online and free forms.
You do not need to hire a lawyer to draft your Will or Trust. The benefit of using a local attorney as opposed to a website is customer service and continuity or care. We often have clients contact us after paying for a website to draft their documents because they do not understand them, do not know what they mean, and do not know how to explain them to their children. They also do not have any way of updating them if their life changes a few years down the road. At LoMonaco Law we pride ourselves on being lifetime partners to our clients. All of our attorneys are born and raised in the Chicagoland area and love having repeat clients and growing with our clients as their needs change. Our clients also find it comforting to know that when they do pass away, there will be an actual person with a phone number and an email that they can contact any questions about the documents or process.