When it comes to estate planning in Illinois, it’s crucial to understand which assets may not pass under a will. Certain types of property are exempt from probate and will be distributed according to specific rules, regardless of what is stated in a will. In this article, we will delve into the various forms of property that do not pass under a will in Illinois, including joint property, life insurance policies, and trusts.
Joint Property
One type of property that does not pass under a will in Illinois is joint property. When property is held jointly with rights of survivorship, it means that upon the death of one owner, the property automatically passes to the surviving owner(s) outside of the probate process. This is a common feature of joint bank accounts, real estate, and other assets held jointly by spouses or partners.
Life Insurance Policies
Life insurance policies are another example of assets that bypass a will in Illinois. The proceeds from a life insurance policy are paid directly to the named beneficiaries and are not considered part of the probate estate. This means that the funds from a life insurance policy will go directly to the designated beneficiaries, regardless of what is outlined in the deceased individual’s will.
Trusts
Trusts are legal arrangements where a trustee holds assets on behalf of beneficiaries. In Illinois, assets held in a trust are not subject to probate and do not pass under a will. Trusts can be an effective way to transfer assets to beneficiaries outside of the probate process, providing privacy and potentially reducing estate taxes.
Legal Code Reference
For more detailed information on the laws governing property that does not pass under a will in Illinois, refer to the Illinois Compiled Statutes, specifically Chapter 755 – Estates.
Maximizing Your Estate Plan
Understanding which assets do not pass under a will in Illinois is essential for creating a comprehensive estate plan. By taking into account joint property, life insurance policies, trusts, and other non-probate assets, you can ensure that your wishes are carried out effectively and efficiently.
Buried in Work’s Additional Resources
Buried in Work provides Illinois state-specific service provider directories and information related to estate preparation, end-of-life tasks, and estate transition information. Click here to learn more.
