Estate planning is a process whereby a person's objectives for management and disposition of
his property are analyzed and action is taken to accomplish those objectives. Here are some of
the areas that estate planning addresses:
* Who should get my money and property when I'm gone? The needs of one's spouse, children
and others must be weighed against one another. This can be particularly difficult if there are
children by prior marriages or a property settlement agreement with a current or former
spouse.
* Is there enough money to provide for my family? Particularly the young people, the adequacy
of one's life insurance program should be reviewed.
* Who will manage the estate? This is a critical problem if there are handicapped or minor
beneficiaries. Who should be guardian of minors or handicapped beneficiaries?
* Are there any tax considerations? Particularly in the cases of business or farm ownership, there are questions with regard to succession of ownership. Also, large asset scenarios can lead to higher tax consequences.
In most cases, lay people shouldn't do their own estate planning without legal help. Few
persons are experienced in solving the problems outlined above. Even fewer are skilled in
drafting with precision and clarity the documents needed to put the plan into effect. One's
attorney should certainly be involved in preparation of the estate plan. Many other people --
accountants, life insurance underwriters, trust officers and financial planners -- may also assist
in this planning. For certain estates, bankers, business consultants and farm managers may be
consulted as well.
The Illinois State Bar Association has developed this brochure to explain some of the main aspects invovled in estate planning.