• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Home
  • Our Firm
    • About Our Firm
    • Attorney and Staff Profiles
    • Communities We Serve
      • Cook County
        • Barrington
        • Glenview
        • Northbrook
        • Skokie
      • Lake County
        • Gurnee
        • Lincolnshire
        • Riverwoods
        • Vernon Hills
        • Waukegan
  • Services
    • Asset Protection & Business Planning
    • Estate and Gift Tax Figures
    • Estate Planning Services
    • Family-Owned Businesses & Farms
    • Financial Planning Assistance
    • Incapacity Planning
    • IRA & Retirement Planning
    • Legacy Planning
    • LGBTQ Estate Planning
    • Pet Planning
    • SECURE Act
    • Special Needs Planning
    • Trust Administration & Probate
  • Resources
    • Client Resources
      • Free Seminars
      • Estate and Gift Tax Figures
      • Free Estate Planning Worksheet
      • Is Your Estate Plan Outdated?
      • Probate Resources
        • Glenview Probate
        • Lake Forest Probate
        • Lincolnshire Probate
        • Northbrook Probate
        • Vernon Hills Probate
        • Waukegan Probate
    • Frequently Asked Questions
      • Asset Protection
      • Business Succession Planning
      • Estate Planning
      • Families Without an Estate Plan
      • Financial Planning Assistance
      • Legacy Wealth Planning
      • LGBTQ Estate Planning
      • Probate
      • Trust Administration & Probate
      • Trusts
    • Legacy Wealth Planning
    • Published Books
    • Reports
      • Advanced Estate Planning
      • Basic Estate Planning
      • Estate Planning for Niches
      • Trust Administration
  • BLOG
  • Contact Us
  • Review Us

Hedeker Law

Illinois Estate Planning Attorneys

Connect with us today(847) 913-5415

Attend a Free Seminar
Home / General / Lincolnshire Estate Planning Lawyers Answer 5 Common Questions

Lincolnshire Estate Planning Lawyers Answer 5 Common Questions

June 1, 2017General

estate planningIn the United States, over half of all adults do not have an estate plan in place, despite understanding the importance of having a plan. When asked about why they have yet to create their estate plan, one of the most commonly given responses is that the entire concept is intimidating. This is understandable given the fact that most estate planning concepts and terms are not used outside of estate planning. In an effort to introduce you to some of those concepts and terms, the Lincolnshire estate planning lawyers at Hedeker Law, Ltd. put together the following five frequently asked questions and answers.

  1. What is a Last Will and Testament and what happens if I don’t have one when I die? A Last Will and Testament is a legal document that is used to express an individual’s wishes with regard to his/her estate assets and what should be done with them upon the Testator’s (creator of the Will) death.  If a decedent left behind a valid Will, he/she is said to have died “testate.” When no valid Will was left behind by the decedent, the decedent is said to have died “intestate.” If you die intestate, the Illinois intestate succession laws will determine what happens to your estate assets and only close family members will inherit from your estate.
  2. What is probate and do all assets have to go through probate? When an individual dies, that person leaves behind an estate consisting of all assets owned by the decedent at the time of death. Probate is the legal process that ultimately leads to transferring those assets to the intended beneficiaries and/or heirs of the estate. One of the first things that must be done during the probate process is to determine which assets are probate assets and which assets are non-probate assets. Non-probate assets bypass the probate process and may be distributed to the intended beneficiary immediately. Common examples of non-probate assets include:
    • Assets held in a trust
    • Proceeds of a life insurance policy
    • Certain types of jointly help property
    • Assets held in an account with a “payable on death (POD)” or a “transfer on death (TOD)” designation
    • Certain retirement, pension accounts
  3. What is a trust and do I need one? A trust is a relationship whereby property is held by one party for the benefit of another. Although trusts have evolved to the point where there is a specialized trust for almost any estate planning goal, all trust begin with the same elements, including:
    • Settlor – the person who creates the trust. A Settlor may also be referred to as the Grantor or Maker of the trust.
    • Trustee – an individual or entity that administers the trust terms as well as manages and invests the trust assets.
    • Beneficiary – a beneficiary is the person, entity, or even family pet that receives the benefit of the trust assets.
    • Terms – created by the Settlor and may be anything that is not illegal or unconscionable.
    • Funding – almost anything of value can be used to a fund a trust, including cash, securities, and real property.
  4. What is Medicaid and why would I need it as a senior? Medicaid is a healthcare program that is predominantly funded by the United States federal government; however, the individual states have the option to supplement funding for the program. Although it is primarily funded by the federal government, Medicaid is administered by the individual states, meaning the eligibility guidelines and benefits offered will differ somewhat from one state to another. The need to qualify for Medicaid will most likely arise as a result of the need for LTC. When you enter your retirement years you will stand about a 50 percent chance of needing LTC at some point before the end of your life. With each passing year, that chance increases. The cost of that care may prompt you to turn to Medicaid. As of 2016, the average cost of a year in LTC across the United States was $80,000 and neither your basic healthcare insurance nor Medicare will cover LTC care expenses. Medicaid, however, will help if you qualify for benefits.
  5. Can’t I just use DIY estate planning documents? Aside from failing to plan altogether, the single biggest mistake people make when creating an estate plan is trying to save money and time going the DIY route. DIY estate planning documents you encounter on the internet will likely have significant errors that cause litigation during the probate of your estate. Ultimately, the time and money it costs to deal with the issues caused by your use of DIY documents far exceeds the time and money you saved by going the DIY route.

Contact Lincolnshire Estate Planning Lawyers

For more information, please download out FREE estate planning worksheet. If you have additional questions or concerns regarding estate planning, or would like to get started on your plan, contact the experienced Lincolnshire estate planning lawyers at Hedeker Law, Ltd. by calling (847) 913-5415 to schedule an appointment.

  • Author
  • Recent Posts
Dean R. Hedeker
Dean R. Hedeker
Dean Hedeker is a leading Chicago-area authority on estate and tax planning, business law and investments. A long-time resident of north suburban Lincolnshire, Dean has more than 35-years experience helping business owners and families grow, protect and pass on their hard-earned money through tax planning, estate planning and investment management services.
Dean R. Hedeker
Latest posts by Dean R. Hedeker (see all)
  • How Can I Terminate a Living Trust? - September 24, 2019
  • Is an AB Trust Right for My Estate Plan? - September 12, 2019
  • How Can I Include Philanthropy in My Estate Plan? - September 4, 2019

Other Articles You May Find Useful

Lincolnville inheritance planning attorney
Lincolnshire Inheritance Planning — Keeping the State Out of Your Estate
Asset protection trusts
Asset Protection Trusts — Can They Protect My Assets If My Spouse Remarries after I Die?
Vernon Hills estate planning lawyers
Vernon Hills Estate Planning Lawyers Explain 10 Steps to Creating an Estate Plan
trust administration
Trust Administration Questions to Ask Yourself When Appointing a Trustee
Lincolnville asset protection trusts
Lincolnshire Asset Protection Trusts – Are Your Assets Safe?
estate planning attorneys
Estate Planning Attorneys Explain the 5 Most Important Estate Planning Components

Primary Sidebar

FREE ESTATE PLANNING WORKSHEET

There's a lot that goes into setting up a comprehensive estate plan, but with our FREE worksheet, you'll be one step closer to getting yourself and your family on the path to a secure and happy future.

  • This field is for validation purposes and should be left unchanged.

Follow Us

  • Facebook
  • twitter
  • link
  • youtube

Testimonials

Client Review
September 8, 2020
    

Dean's knowledge is very comprehensive and current. He not only sees and understands the particular question but he puts it in the context my particular matter and to the overall business and tax environment. Dean has been my attorney for many (over 20) years. I am also an attorney but I would never make a tax, business or financial decision without his extraordinary advice and counsel.

default image
Raymond

Where We Are

LINCOLNSHIRE
1 Overlook Point, Suite 610,
Lincolnshire, IL 60069
Phone: (847) 913-5415

See Larger Map Get Directions

Blog Subscription

  • This field is for validation purposes and should be left unchanged.

Office Hours

Monday8:00 AM - 5:00 PM
Tuesday8:00 AM - 5:00 PM
Wednesday8:00 AM - 5:00 PM
Thursday8:00 AM - 5:00 PM
Friday8:00 AM - 5:00 PM

Map

hedeker_sidbr_map

Footer

  • Advantages of Working With Our Firm
  • About The American Academy
  • Privacy Policy
  • Disclaimer
  • Sitemap
  • Contact Us

Connect with Us

  • Facebook
  • twitter
  • link
  • youtube
footer-logo

Hedeker Law Ltd.
All Right Reseved.

Attorney Advertisement

© 2023 American Academy of Estate Planning Attorneys, Inc.