Aging parents often leave conversations about inheritance untouched. These conversations are difficult and can leave both parents and children feeling sad or confused. However, these conversations are also very important because they touch on serious topics that have the potential to significantly impact the lives of everyone involved. By avoiding conversations about estate planning and end-of-life wishes, parents may inadvertently set their children up for more pain and suffering in the future as they struggle to understand a parent’s wishes regarding their estate. 

For many, a parent’s home is the only inheritance that will be handed down upon the parent’s death. The lack of more complex or valuable property may lead some people to believe that creating an estate plan just for a home is not worth the time or effort it would take. But putting a home through the probate process can be very complex and can significantly diminish the overall value that inheritors stand to inherit from the home. If you are interested in helping your parents keep their home out of the probate process after they pass away, read on. 

Does Real Estate Have to Go Through Probate? 

With the appropriate legal instruments in place, your parent’s home does not have to go through the probate process. There are many advantages to avoiding probate, including: 

Major changes in relationships often bring changes to other, equally important parts of life. Marriage, divorce, and death are some of the most significant life events and all three have the potential to change the way we organize our property and financial planning. While marriage and death are often planned for, divorce often is not. Furthermore, the highly emotional and bureaucratic nature of divorce makes it easy to forget to handle other practical financial concerns, especially if you are exhausted after dealing with ongoing legal issues. However, taking care of your estate plan, including the way you manage your real estate, is essential. Failing to do so can mean accidentally leaving your assets in the wrong hands, benefitting someone to whom you are no longer married. 

Property After Divorce

Illinois law requires marital property to be divided fairly. Couples often come up with creative solutions for dividing their property, compensating each other with cash, retirement plans, or real estate in exchange for assets they want. Of course, when divorce divides the ownership of an asset, the beneficiaries of any estate plan that manages that asset usually need to change as well. 

However, any personal property that was owned by you before getting married or which is protected by a pre- or post-nuptial agreement, is not subject to division in the divorce. Personal property is often overlooked in estate planning restructuring because marital property is top of mind, but if your ex-spouse is the beneficiary of any personal property, you need to make sure you change that right away. There have been many tragic cases in which beneficiaries were not changed and former spouses inherited property that should have gone to children or to a new partner. 

If you own real estate, there are a variety of concerns that you may need to address when creating an estate plan. You may be looking to ensure that ownership of real estate property can be transferred to others with minimal complications or expenses, or you may wish to protect your privacy and maintain anonymity. Land trusts can be an effective tool for doing so. These trusts can help you protect your property and keep it out of probate. They can also help you manage your assets, minimize taxes, and prepare for the future. By understanding how land trusts work, you can determine the best ways to use them as part of a comprehensive estate plan.

What Is a Land Trust? 

A land trust is a legal document that holds title to real estate for the benefit of another person or entity. The trust is managed by a trustee, who will hold the legal title to the property on behalf of the beneficiary or beneficiaries (the people who will ultimately receive the property). When you create a land trust, you will transfer ownership of your property from yourself to the trustee, who will then hold it on your behalf according to the terms and conditions set forth in the trust agreement. 

When Should I Use a Land Trust? 

A land trust can be extremely useful if you have invested in multiple properties and want them all included in one estate plan. You can also use a land trust if you want to transfer ownership of your property without going through probate, which can be lengthy and expensive. You will also be able to maintain anonymity, since the trust will be listed as the owner of the property in any public records, and you may also be able to purchase or sell real estate without publicly disclosing the purchase price. Additionally, setting up a land trust can help protect your assets from creditors or lawsuits should something happen to you or any other beneficiaries listed in the document. Finally, using a land trust can help minimize taxes, since only certain types of income will be taxable under this structure. 

If you are like most people, decisions regarding end-of-life decisions and estate planning are not something you want to think about. However, making these decisions now can save your loved stress and expense in the future. Estate planning also provides something no amount of money can provide: peace of mind knowing your final wishes will be carried out according to your specifications.

Strategic estate planning can also reduce the legal complications associated with your passing. One way to simplify the estate planning process is to use a transfer on death (TOD) instrument.

Advantages of Using an Illinois Transfer on Death Deed for Property

A TOD deed or beneficiary deed is a legal document that allows you to transfer ownership of your property to another person upon your death. The process is similar to naming a beneficiary on a life insurance policy. TOD deeds are revocable. You can name one or more beneficiaries, and you can change the beneficiary at any time before your death.