Yorkville Estate Planning Lawyer: How To Set Up A Good Estate Plan

 Posted on December 12, 2022 in Estate Planning

Estate planning is a form of financial and retirement planning designed to facilitate the transfer of assets upon one’s death or incapacity. Estate planning distributes one’s assets to one’s loved ones without hassle nor conflict. Estate planning is honorable because one’s legacy provides peace of mind. Estate planning is a love language because wealth planning is family oriented.

Kendall County Estate Planning Attorney: Estate Planning Foundation of Success

A basic estate plan consists of four main elements:

• Living Trust and Planning to avoid probate court. A Living Trust or otherwise called a “Revocable Living Trust” or “Trust” is a legal document, which is created by a person, couple, or entity that administers and managers property such as financial accounts, life insurance, real estate assets, and business assets in a cost-effective manner. A Living Trust avoids probate court, which differs from a will. A will must undergo the probate process and is not effective unless probate court admits the will into probate court. A Living Trust promotes privacy because a trust agreement is a private document. There is no recording of it nor filing the Living Trust in at the local courthouse. Spendthrift protection protects your beneficiary’s financial accounts and assets from creditors such as a divorcing spouse.

• A Pour Over Will is a legal instrument that coordinates with a Living Trust. The Pour Over Will is safety device in case one forgets to transfer their assets into the Living Trust’s name. Re-titling one’s assets are critical because the purpose of successful estate planning is wealth management in a manner that facilitates the distribution of one’s assets in a hassle-free and cost-effective manner.

• Medical Powers of Attorneys are important because an incapacity or an accident that threaten one’s financial well-being. With a medical power of attorney, one appoints a person to make medical decisions such as whether to withholding medical treatment when one is incapable of making decisions for themselves. The Illinois legislature has enacted legislation that protect one is right to determine their healthcare decision-making even if it leads to one’s death.

• Financial Power of Attorney is a legal document where one appoints an agent to make financial and property decisions when they are incapable of contributing towards their financial decision-making.

An estate planning attorney assists clients outline their wishes. An estate planning lawyer’s job is to anticipate conflicts that could cause friction and legal concerns. An estate planning attorney prepares an estate plan to address these conflicts. By addressing gaps in one’s estate plan, an estate planning attorney provides peace of mind to family members. Using trusts or planning one’s medical and financial decision-making are wise decisions. 

Medical Powers of Attorney and Financial Powers of Attorney

A power of attorney is a legal document that allows an individual, known as the principal, to designate another individual, known as the agent or attorney-in-fact, to make decisions on their behalf. In Illinois, there are two main types of powers of attorney: durable and non-durable.

A durable power of attorney remains in effect even if the principal becomes incapacitated, whereas a non-durable power of attorney is only valid if the principal can make their own decisions.

Having a power of attorney in place is important. For example, if the principal becomes incapacitated and does not have a durable power of attorney in place, a court may need to appoint a guardian to make decisions on their behalf. This can be time-consuming and costly.

Additionally, a power of attorney allows the principal to choose who they trust to make decisions on their behalf, rather than leaving it up to the court. It also gives the agent the legal authority to manage the principal’s finances and make other important decisions on their behalf.

It is important to note that a power of attorney does not give the agent the authority to make decisions about the principal’s healthcare. For that, a separate medical power of attorney must be set-up where the principal appoints an agent that is empowered to make health-related decisions for the principal.

Yorkville Estate Planning Lawyer: Providing Peace of Mind Asset Protection

In summary, estate planning in Oswego, Illinois, and nearby areas such as Yorkville, Plano, Montgomery, Sugar Grove, and Aurora provide peace of mind asset protection. Peace of Mind Asset Protection, LLC provides free initial consultations to assist residents of Kendall County and nearby with their estate planning, asset protection, and powers of attorneys. Call us today at 630-882-2467 or through the online contact form.