For families in Naperville, Illinois, estate planning offers crucial protection for your loved ones and your assets. Unfortunately, many individuals delay creating a comprehensive estate plan because they simply aren’t aware of the benefits, or why it is so important. Let’s face it, regardless of our age or stage in life, we all think we have more time. Not to mention, estate planning is one of the easiest things to “put off.” It takes time that we don’t have “right now.” The expense just isn’t something you can justify “right now” because of the cost. Like all important things in life, there’s never a right time and something always comes up. The furnace went out, the kids and family deserve that (overly expensive) Disney trip, your spouse really wants that home renovation or furniture upgrade – there’s always something that you could prioritize over the cost of planning. So, it gets put on the back burner and you put it off for decades until you’ll “really need” to get your planning done. This “wait-until-it’s-needed” mentality, although common, can increase stress, create complications, and leave loved ones vulnerable to legal and financial obstacles when it becomes too late to get a plan in place.
My family is personally going through this now. My father-in-law recently passed away and two weeks before his death he finally allowed me to get his plan in place. He thought he knew better, he thought he didn’t “need” all the attorney legal-mumbo-jumbo and that it was all a big racket for lawyers to charge you money that you didn’t “need” to spend. As a result, we went into crisis planning in those final two weeks. It was hectic, stressful, and unnecessary pressure on him at a time when he was not in the best frame of mind. Personally, I felt terrible having to address unpleasant conversations about an inevitable reality when I would have much rather been spending quality family time with him and celebrating his life in those precious final weeks. Not to mention, we lost the opportunity to strategically plan, avoid taxes, and a whole myriad of other things that could have been avoided if we had a little bit more time. So, from personal experience, please do not wait if this is something you are considering to protect your family. I know that in hindsight, if he was here today and seeing everything his daughters are going through to clean up his estate, he would have taken care of this all-too-important area of life years ago.
The problem is, we don’t know what we don’t know, and what happens after someone is gone is a dark area of our society that no one seems to understand unless they’ve been through it. If you haven’t personally experienced the difficulty of what family members have to go through after someone passes away, you don’t have any reason to know why it’s so important to get your plan in place and give yourself and your family the peace of mind that your affairs are taken care of and your family will be protected.
At Family Wealth & Legacy Legal Solutions, we understand the importance of having your wishes clearly documented, and a well-thought-out and comprehensive plan in place for your family.
The Risks of Delaying Estate Planning
As mentioned, estate planning is easy to put off and most do, until it’s too late because everyone thinks they have more time. Unfortunately, without a plan, you risk losing control over critical areas such as:
- Asset Distribution: Without a will, Illinois probate laws will dictate how your assets are distributed, which may not align with your wishes. If you’d like to learn more, please read our prior article, What Will Happen to Your Kids If Something Happens To You? It May Not Be What You Think Unless You Take Action. Two of the biggest examples you will find in that article that are shocking to most Illinois families is that if you only have a Will in place and something happens to you and your spouse, your children will inherit the entirety of your life savings at the age of 18. I don’t know any parent who thinks an 18-year-old would manage their life savings wisely. The second, Illinois law, specifically, 755 ILCS 5/2-1(a) provides that: “1/2 of the entire estate to the surviving spouse and 1/2 to the decedent’s descendants.” This means that your spouse will only get 50% of the money you leave behind and your kids will get the other half. If they are minors and under the age of 18, their half will now be controlled by the courts. Your spouse will not be able to use that money without court supervision, accounting to the court, or even having to pay lawyers to ask a judge for permission to spend it. Check out this prior article if you’re curious and would like to learn more.
- Healthcare Decisions: Without a healthcare proxy or power of attorney, loved ones could lack the necessary authority to make healthcare or financial decisions on your behalf.
- Guardianship for Minor Children: If you have minor children, not having a designated guardian will leave critical decisions in the hands of the courts. Planning for young parents is what we love to do, they are the most at risk and at the same time, the most unaware of why they need a plan in place in most cases. I have a six-month-old daughter and understand the lack of time and resources. Yet, it is imperative to get a plan in place if you have young children. If you’re curious why, please read the above-referenced article.
Conflict amongst family members during an already difficult time can arise over mere disagreements, misunderstandings, or speculation. Things often get a little strange after someone passes away and these disputes can often lead to legal battles, or fights that will burden your family with unnecessary stress and financial hardship. It’s sad, but after the death of a loved one, life-long relationships can be irreparably destroyed over misunderstandings and disagreements that could have easily been avoided by a well-thought-out estate plan that guides your family through a difficult time and leave behind the guidance, wisdom and wishes that you want to leave a lasting legacy for your family. Simply put, planning before problems arise and while you are in the right frame of mind helps avoid probate delays and disputes, sparing your loved ones time, money, and distress. More importantly, having a professional who cares about your family, your memory and your legacy, who is there to help sherpa your family through a difficult time and assist through the process to ensure that everything is done correctly is an invaluable resource.
Common Reasons People Delay Estate Planning
Our experience is that there’s typically one of three reasons that lead people to actually invest the time and resources to get this critical task completed: (1) someone is facing their own mortality, a health crisis, life-altering event, or witnessing the difficulty that loved ones are facing after the death of a family member; (2) financial reasons, meaning a client is considering retirement or wants to address the financial component and benefits to planning; or (3) A life event that motivates them, such as the birth of a child, or death of a loved one. I’m sure you and your spouse have discussed getting a plan in place at some point in time. Most likely after one of the above has occurred, but for one reason or another you didn’t take action to move forward.
Even for those who recognize its importance, estate planning is often delayed. Every year, Caring.com comes out with an amazing article and study detailing the statistics of those surveyed about estate planning and outlines the key reasons people have not gotten a plan in place, for 2024 those key reasons include:
- Belief of Insufficient Assets: Many think they don’t have “enough” assets to warrant a plan.
- Process Complexity: The legal process may seem complicated and intimidating.
- Lack of Beneficiaries: Some feel they have no one to leave assets to, so they don’t plan at all.
- Competing Priorities: Other pressing issues, such as work or family needs, often take precedence.
While these concerns are understandable, delaying planning increases the chance of avoidable complications later. At Family Wealth & Legacy Legal Solutions (FWLLS), we help clients navigate these difficult issues, ensuring a straightforward and comprehensive process that gives will give you and your family peace of mind.
Essential Documents in Estate Planning
Creating an estate plan tailored to your needs is an empowering process. Key documents you may want to consider include:
- Trust: Avoids probate and allows your beneficiaries to receive their inheritance as you wish.
- Will: Specifies asset distribution and designates guardianship for minor children.
- Power of Attorney: Allows someone you trust to make financial decisions on your behalf if you are unable.
- Healthcare Proxy: Names a trusted person to make medical decisions if you are incapacitated.
- HIPPA waiver: Allowing your loved ones to receive information from your healthcare providers.
- Living Will: Outlines your preferences for end-of-life medical care.
According to Elder Law Answers, you should begin estate planning when you turn 18. Starting these documents early—whether you are 25 or 65—ensures that your wishes are documented and clear, reducing future uncertainty for loved ones.
Estate Planning for Aging Parents: A Compassionate Approach
Discussing estate planning with aging parents can be challenging, but it is essential. Trust me, I know and in hindsight, I wish I would have been a bit more forceful in pushing the issue. Please don’t make the same mistakes I have because when done correctly and before it’s too late, planning together can provide your family with greater peace of mind and help avoid rushed decisions during a health crisis. When you approach these discussions with compassion, the conversation becomes about supporting and honoring their wishes rather than focusing on inheritance or finances.
Key Topics to Cover with Your Parents:
- Creating (or Updating) Their Will: Confirm if they have a Will and if their current Will reflects their wishes and names an executor.
- Creating (or Updating) Their Trust: Confirm if they would prefer to avoid probate for their estate after their gone. If they already have a trust, if it needs to be updated and how they wish for their assets to be managed and passed down to their loved ones.
- Power of Attorney and Healthcare Proxy: These documents ensure someone trusted can step in to make crucial decisions if needed. Discuss how they want their finances and healthcare decisions managed if they are ever unable to do so themselves.
- Living Will: Discuss any end-of-life care preferences, such as medical interventions and DNR orders.
- Beneficiary Designations: Double-check that life insurance policies, retirement, investment and banking accounts have up-to-date beneficiaries.
By preparing together, you ensure that your parents’ legacy and intentions are clear, which can reduce stress and help avoid potential family conflicts down the road.
Begin Your Estate Plan Today with Family Wealth & Legacy Legal Solutions
Estate planning is a proactive step that empowers you to secure your family’s future. Whether you’re establishing your own plan or supporting a parent, our team at Family Wealth & Legacy Legal Solutions (FWLLS) is here to make the process as simple and stress-free as possible. With a deep commitment to families in Naperville and surrounding Chicagoland areas, we guide each client with empathy, integrity, and professionalism.
Protect Your Legacy—Book Your Initial Call Today
Don’t wait for a crisis to begin planning. Schedule an initial call with Family Wealth & Legacy Legal Solutions (FWLLS) today to schedule an initial consultation. Together, we can create a comprehensive, personalized estate plan that brings peace of mind to you and your family.