Is Having a Will, Enough of an Estate Plan?

Many people assume that having a will is the simplest and most cost-effective estate plan document to transfer an inheritance to their heirs.  In reality, this is usually not true and many times can be the longer and the more costly of the estate planning options. 

In a will, you name an executor to administer your estate after you die.  In most cases, this person is not able to act until the will is admitted to probate (formal court proceeding) and the court issues Letters of Office for the executor to act on behalf of the estate.

The following are four facts that you should be aware of before relying solely on a will for your estate plan.

1. Probate takes time.  If Illinois estates have no real estate and the assets are under $100,000, an executor can usually avoid probate with a small estate affidavit.  If there is real property or assets exceeding $100,000, the estate will be required to go through probate.  

As with most legal proceedings, the ability to obtain a court date and then have follow-ups with the judge can take time.  An estate must be open for at least six (6) months to allow creditors to make any claims against the estate.  Once everything is finalized, you may close the estate and distribute the assets to heirs.  This typically takes at least 9 months depending on the complexity of the estate.

2. Costs of Probate.  Probate is not a matter to be done on your own ("pro se").  The courts have specific procedures, filing fees to be paid, and forms that must be properly drafted to open and administer an estate. The executor will likely want to engage the services of an attorney and an accountant to assist with administering the estate efficiently.  

3. Probate Documents are Public. Once an individual dies, their will is required, by law, to be filed with the clerk of court.  At that point, the will becomes a public document along with any probate filings.  Many families do not care to have their personal wishes and assets be open for public inspection.

4. Probate Can be Avoided.  While a will is an important piece of an estate plan, there are ways to avoid the probate process altogether by utilizing revocable trusts or by designating beneficiaries directly by transfer on death designations, on certain accounts such as life insurance policies, and on retirement plans.  As you review your estate plan, keep in mind that a will maybe just the first step toward achieving the estate planning goals that you desire. 

If you have any questions about preparing an estate plan, please feel free to contact Glick and Trostin, LLC at 312-346-8258.

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