One important piece of estate planning is listing all property owned. This can be the residence where you live but also property in other states. Each state has different laws regarding how property is through probate court when the owner dies. And because of this, estate planning for out-of-state residents who own property in Illinois must be set up a bit differently.
Let’s say your primary residence is in Minnesota, but you also own land in Illinois. When establishing your estate plan, you need to consider how you will pass the land onto your beneficiary when you die. But you must also consider what you may need now to maintain the property in Illinois.
Some estate planning documents you may require are:
When deciding between writing a will or establishing a trust, it’s wise to consider your out-of-state property. With a will, all assets and property must go through probate court before it is given to the beneficiary. This means that your loved ones will have to have to deal with probate courts in both Minnesota and Illinois. They will have to spend more time and money working through the courts in separate states.
There are other reasons to establish a trust for your out-of-state property. All records of wills that go through probate court are available for public review. If privacy is a concern, you may want to establish a trust instead of leaving the property in a will.
All property, regardless of state, may be subject to income tax, federal tax, gift tax, and Illinois estate tax. Having a trust can sometimes ease the tax burden for your beneficiary.
Having an estate planning attorney on your side can help you decide how to handle your property now and after you pass away. They will discuss your beneficiaries, taxes, and final wishes before helping your set up your plan. Of course, you’ll want to review and update your estate plan after any major life events… and your attorney will be there for you.
You may understand exactly how you want your real estate, assets, and money handled after your death, and an estate planning attorney can make it happen.
Contact us for more information on establishing an estate plan that includes your out-of-state property. Call one of our lawyers at Estate and Probate Legal Group today and schedule an appointment at 630-864-5835.
AREAS WE SERVE: Cook, DuPage, Kane, Lake and Will counties