Frequently Asked Questions
Your Estate Planning Questions. Answered.
Taking the first step in estate planning can feel overwhelming, and it is completely natural to have questions about how to best protect your family and your hard-earned assets. We believe the process shouldn’t be confusing. That is why we focus on providing clear, straightforward answers without the dense legal jargon.
Browse through some of the most common questions we hear to learn how a thoughtful, customized plan can keep you in control and minimize unnecessary costs. Our goal is to keep the entire process transparent and low pressure. We want to empower you to make educated decisions that provide your family with lasting protection and true peace of mind.
Frequently Asked Questions
What happens if I do nothing?
A common misconception is that if you pass away without an estate plan, everything will naturally go to your family. The truth is, if you do not make a plan yourself the State of Illinois already has one for you. The legal process is called intestate succession.
Because the state legislature wrote intestate succession as a one-size-fits-all solution, it rarely accounts for the unique dynamics of a modern family. As you can imagine, there is no such thing as one-size-fits-all when it comes to families and estate planning, and the default rules often catch people by surprise. For example, if you are married with children, Illinois law splits your assets between your spouse and your kids. That is rarely the outcome most couples want and the state’s plan leaves out unmarried partners, stepchildren, and other considerations you might care about.
Doing nothing means giving up a lot of control. The state doesn’t know your family dynamics or who you trust. Without your instructions, a judge who doesn’t know your family must decide who manages your estate and how your assets are distributed. The court will likely require your heirs to post an expensive bond and may require them to work under strict supervision in probate court (which can be costly). Most importantly, if you have minor children, doing nothing means the judge may have to decide who gets custody of your children without your input.
What happens if I become unable to make my own decisions?
When people hear the phrase estate planning, they usually think about what happens after they pass away. But an important part of the process is actually about protecting you while you are still alive. If a sudden illness or a serious injury leaves you unable to sign your name, manage your bank accounts, or speak to your doctors, your family cannot automatically step in and take over. Without the right legal documents in place, your loved ones would be forced to petition an Illinois court to appoint a legal guardian. This is a public, expensive, and often slow process that essentially puts a judge in charge of your personal and financial life.
We avoid this courtroom interference by building a support system into your plan. The first level of protection involves an Illinois Power of Attorney for Healthcare and a Power of Attorney for Property. These documents allow you to legally name the specific people you trust to make medical decisions and handle everyday tasks (like filing taxes or managing insurance) if you ever become incapacitated. These are essential tools that ensure your personal wishes are respected without a court having to guess what you would have wanted.
A Revocable Trust adds a final, seamless layer of financial protection. While a Power of Attorney is helpful, a trust provides even more authority because it already holds legal title to your assets. If you are sidelined by a health crisis, your handpicked successor trustee can step in immediately to manage your property, pay your mortgage, and keep your investments on track. It is the most effective way to ensure your life keeps running smoothly and privately, keeping your family out of the courthouse and focused on your recovery.
What is a revocable trust (also known as a "living trust")?
A revocable trust is a unique type of trust which you can think of as a private roadmap for your assets. You place your property into a legal “bucket,” but because it revocable, nothing is set in stone; you have the absolute power to change, rewrite, or even cancel the trust as your life evolves. It doesn’t change how you file your taxes or spend your money, it simply organizes your property so it is easier to manage if life takes an unexpected turn.
This structure provides a critical safety net if you ever face a health crisis. If an illness or accident leaves you unable to manage your own finances, your trust is already prepared to protect you. Your handpicked successor can step in and follow your instructions immediately, without needing a judge’s permission. While a Power of Attorney is a common tool for incapacity planning, banks and financial institutions often create “red tape” when honoring them. A trust is generally more effective because it already holds legal title to your assets, giving your trustee the clear authority to act without those common hurdles.
A trust also acts as a fast pass to keep your family out of the court system later. Because a trust is its own legal entity, it survives you, allowing your loved ones to skip the probate process entirely and reduces the potential for dispute. Probate is often slow, expensive, and a matter of public record; a trust avoids all of that. Your successor trustee takes over privately and follows your directions right away, so your family can focus on each other rather than court deadlines and paperwork. It is a practical, professional tool that ensures you stay in the driver’s seat for as long as you want to be.
How do I actually put my assets into a trust?
The most common mistake in estate planning is creating a beautiful trust, but never actually putting your assets in the trust. You can think of your trust as a high-quality safe deposit box, it is a powerful tool, but it cannot protect your home or your bank accounts until you actually place them inside. If you sign your trust documents but leave your assets titled in your individual name, your estate will likely still face the very probate court process you were trying to avoid.
Moving your assets into the trust is a process called “funding.” This involves updating the legal title or beneficiary designations on your property so the trust becomes the official owner. For real estate, this typically requires recording a new deed with the county. For bank accounts or brokerage funds, it usually means updating your account ownership forms or naming the trust as the primary beneficiary. While this sounds like a lot of red tape, it is the essential step that gives your trust its power.
Because every asset and bank is a little bit different, we make it a point to talk through these details during our planning sessions to make sure you have a clear roadmap for your specific situation.
Why do I need a Will if I have a Trust?
We always recommend having both because they perform two different, yet equally vital roles. When you have a revocable trust, your will is specifically known as a “pour-over will.” Think of the pour-over will as a catch-all for any assets that (for one reason or another) were never officially titled in the name of your trust. For example, if you buy a new home several years after setting up your plan but forget to deed it into your trust, that property sits outside of your protected structure. If you pass away, the pour-over will gives the probate judge clear instructions to “pour” that forgotten asset into the trust so it can be managed and distributed according to your specific rules. Without this document, those stray assets would be subject to the state’s default rules rather than your personal instructions.
Most importantly, the will is the legal document where you can name guardians for your minor children. While a trust is the best tool for managing your money and property, a will is about the people you love. It allows you to nominate the exact individuals you trust to raise your children if you are no longer there. This ensures that you, and not a judge who has never met your family, remain the one making the most important decision of all.
Can I protect my children's inheritance from creditors, lawsuits, and divorce?
One of the most important decisions you will make when we design your Revocable Living Trust is how your children actually receive their inheritance. It is helpful to think of this as a sliding scale. You get to decide exactly where to land on that line.
On one end of the scale is an outright distribution. This is a common approach where a child receives their inheritance in one or more lump sums at specific ages, such as 25 or 30. While this offers your child the most independence and has the benefit of simplicity, there is a significant trade-off. Once the money is in their personal name, it has no legal protection. If they face a lawsuit, file for bankruptcy, or go through a divorce, that inheritance is sitting in a personal account where it can be reached by creditors or a former spouse.
On the other end of the scale is a lifetime trust. This provides the highest level of protection because the assets stay inside the trust wrapper for your child’s entire life. This does not mean they cannot use the money. You can ensure the trustee is directed that the money is always available for your child’s health, education, maintenance, and support. You can even give a trustee broader power to distribute funds for nearly any purpose you choose, or at their own discretion.
The most effective strategy is often giving your child the keys to that trust at a certain age. You can design the plan so that once they reach a milestone age, they become their own trustee. This allows them to manage the investments and make their own spending decisions while keeping the assets legally separate from their personal property. It maintains a strong firewall against outside threats while still giving them full control over their legacy.
When we sit down together, we can look at this scale and talk through your family’s needs to find the sweet spot that works best for your family.
Will my family have to pay the estate tax?
Benjamin Franklin famously said that in this world, nothing is certain except death and taxes. For many clients, the most pressing question is whether those two certainties will hit their family at the exact same time. The answer depends on the total value of your assets, but in Illinois, we have to navigate two very different sets of rules.
- Federal Tax: You can currently pass on up to $15 million without paying federal taxes. If one spouse passes away, the surviving spouse can elect in a filing to carry over any unused exemption. This high limit means many families never have to worry about federal estate taxes.
- Illinois Tax: The Illinois estate tax is where things become more complex. Illinois sets a much lower cutoff of $4 million, and the state does not allow spouses to elect to carry over unused exemptions. If you simply leave everything to your spouse without the right legal structure, that first $4 million exemption could be lost forever. While that figure may sound like a high bar, when you factor in a home in Cook County, retirement accounts, and life insurance payouts, many estates cross that line surprisingly quickly.
The good news is that proactive planning can protect your legacy and minimize the burden of estate taxes. However, it is vital not to look at estate taxes in a vacuum. Often, income tax planning is overlooked, even though it can have a much larger impact on what your family actually gets to keep. As an attorney and a CPA, Michael Polkoff looks at the entire picture to consider your overall tax burden, ensuring the wealth you built stays right where it belongs: with your loved ones.
What will an estate plan cost me?
Because every family is unique, there is no one-size-fits-all price tag. In our experience, an attorney who quotes an exact fee before understanding your specific situation may not be fully customizing the plan to your needs. We believe in complete transparency and want you to feel empowered, not pressured. Here is how our process works:
- The Complimentary Consultation: Before you commit to anything, we start with a brief, 15-minute phone call. You tell us a little bit about your family and your assets. In return, we suggest a few potential options and give you a much clearer picture of what your specific plan will cost.
- The Strategy Session: When you are ready to move forward, we schedule a comprehensive review of your assets and family dynamics. This allows us to identify any specific hurdles, like business succession or complex tax issues, that need to be addressed.
- Choosing Your Path: After reviewing your situation, we present you with a few distinct planning options. Comprehensive plans for our clients typically start around $2,250. This foundational level is often ideal for families with straightforward goals, such as protecting a primary home, managing retirement accounts, and ensuring children are fully provided for. While highly complex estates requiring advanced tax or business strategies can range up to $8,000, we find that most of our clients receive the protection they need closer to that starting point.
Our goal is to keep the entire process transparent. We want to provide you with the information you need to make an educated decision for your family’s lasting protection and your own peace of mind.
Commonly Used Legal Terminology and Meaning
Key Documents & Tools
- Will: A legal document that explains how you want your property distributed after you pass away. It only takes effect after death.
- Pour-Over Will: A “backup” Will used alongside a Living Trust. It ensures that any assets you forgot to put into your Trust during your life are “poured” into it automatically after you die.
- Trust: A legal “bucket” where one person (the Grantor) gives another person (the Trustee) the authority to hold and manage property for someone else (the Beneficiary).
- Revocable Trust (Living Trust): A Trust created during your lifetime that you can change or cancel at any time. It’s often used to avoid the public probate process.
- Irrevocable Trust: A Trust that generally cannot be changed or ended once it is created.
- Living Will: A document that tells doctors whether or not you want to be kept on life support if you are terminally ill and cannot speak for yourself.
- Power of Attorney for Healthcare: A document where you pick a person (a “healthcare agent”) to make medical decisions for you if you become too sick to make them yourself.
- Power of Attorney for Property: A document where you pick a person (a “financial agent”) to handle your financial matters (like paying bills or selling a house).
The People Involved
- Administrator: A person or organization appointed by a judge to manage an estate when there is no Will, or when the person named in the Will cannot do the job.
- Beneficiary: A person or entity (like a charity) that is chosen to receive assets or benefit from a legal arrangement like a Trust or Will.
- Descendant: A person in your direct line of “blood” relatives, such as children, grandchildren, and great-grandchildren.
- Executor (aka Personal Representative): The person or institution named in a Will who is responsible for handling the deceased person’s final affairs, paying their debts, and giving out the inheritance.
- Grantor (aka Settlor or Trustor): The person who creates and puts assets into a Trust.
- Guardian: A person or organization legally chosen to be responsible for the care of a child or a disabled adult.
- Heirs: The people who, by law, are entitled to inherit your property if you die without a Will.
- Income Beneficiary: A person who has the right to receive the “earnings” (like interest or rent) from a Trust, rather than the total lump sum of the assets.
- Trustee: The person or institution in charge of managing the assets held in a Trust according to the rules written in the Trust document.
Managing Assets & Ownership
- Probate Estate: The assets that must go through a court-supervised process to be distributed, usually because they were owned in your name alone.
- Intestate: Dying without a valid Will. When this happens, state law decides who gets your property.
- Bequest: A gift of property (money, jewelry, etc.) left to someone in a Will.
- Disclaimer: A formal way of saying “no thank you” and relinquishing all rights to an inheritance or gift.
- Joint Tenancy: A way for two people to own property together so that when one dies, the other automatically owns the whole thing.
- Tenancy by the Entirety: A special type of joint ownership for married couples that offers extra protection from creditors.
- Tenancy in Common: Ownership where two or more people own a share of a property. If one dies, their share goes to their own heirs, not necessarily the other owner.
- POD / TOD (Payable/Transfer on Death): An arrangement with a bank or brokerage that automatically sends the money in an account to a specific person when the owner dies, bypassing probate.
- TODI (Transfer on Death Instrument): A special type of deed used in Illinois that allows you to name a beneficiary for your real estate (like your home or even commercial property). The property transfers automatically to them when you pass away, allowing your family to avoid the probate court process for that specific asset.
Tax Related
Taxes
- Estate Tax: A tax the government charges on the total value of your property when you die.
- Income Tax: A tax on the “earnings” you or your assets produce or the profit made when an asset is sold. Unlike the Estate Tax, which looks at the total size of your holdings, Income Tax focuses on the money those holdings generate.
- Inheritance Tax: A tax some states charge on the person receiving the inheritance (rather than on the estate itself).
- GST (Generation-Skipping Transfer) Tax: An extra tax applied when you leave a large amount of money to someone two or more generations below you (like a grandchild).
Exclusions and Exemptions
- Gift Tax Annual Exclusion: The amount of money you can give away to another person each year without having to report it or pay taxes on it. For 2026, this is $19,000 per recipient.
- Federal Gift & Estate Tax Exemption: The total amount of money and property you can give away during your life or pass at your death before the federal government charges a “transfer tax” (currently 40%). For 2026, this limit is $15 million per person.
- Illinois Estate Tax Exemption Threshold: The amount you can pass at your death before the State of Illinois charges a tax (currently 0.8-16%). For 2026, this limit is $4 million per person.
- Marital Deduction: A rule that allows you to give an unlimited amount of assets to your spouse (if they are a U.S. citizen) without paying gift or estate taxes.
- Step-up in Basis: A tax benefit where the “value” of an inherited asset (like a house) is reset to its market value on the day the owner died. This can significantly lower the income taxes paid if sold later.