Distributing the estate to beneficiaries in Lombard is a task that an attorney could help you with. While you may not be as familiar, an attorney could help you vet valid creditors, pay them first, and then use the remaining assets to distribute among beneficiaries. If you were to not follow either the will of the testator or the rules governing distribution, you could be made liable for the estate. To prevent that, reach out to an experienced estate planning attorney.
Assets are distributed to heirs and beneficiaries in Lombard through the estate process. Generally, it is distributed to heirs if it is an intestate estate (an estate without a will). In Illinois, there is a series of statutes that provide for how that property is distributed. It follows the closeness or familial relationship between the decedent and their family members in determining who gets what. For example, if a person dies in Illinois with a spouse and children, then that property is distributed 50 percent to the spouse and 50 percent to all the children in equal shares. If a person passes away without a spouse but with children, 100 percent of that property passes to the children, who then divide it equally among themselves.
A will allows a person to distribute their property outside of this basic statutory scheme. The intestacy statute could be described as the Illinois legislature’s best guess about how one would want their property distributed. A will can name specific beneficiaries who do not fall within the best guess of the Illinois legislator, and it allows a person to pick and choose in what amounts, to whom, and where their property goes. Assets, whether it is intestate or testate, are distributed by a representative through the probate process. While distributing an estate to beneficiaries may seem relatively straightforward, it is still wise to have an attorney in Lombard guide testators through the will-writing process.
A beneficiary designation is a designation of an individual to receive specific property upon the death of the person making the designation. The classic example is a beneficiary designation on a life insurance policy. In that case, according to the terms of the life insurance policy, the proceeds are paid directly to an individual. Beneficiary designations are a popular way for individuals to pass property to others upon their death without using an estate plan.
Generally, property that passes via beneficiary designation passes outside of that individual’s probate estate and is distributed directly from the financial institution to that beneficiary. Often, people can avoid probate in Lombard by using beneficiary designations. Many accounts today can be passed via beneficiary designation. This includes retirement, brokerage, and regular bank accounts. This could also be referred to as a payable-on-death distribution, or designation, or a transfer-on-death designation. Both are very similar. It is a mechanism by which property could pass outside of a probate estate.
The order of priority is determined by the Illinois estate legislature and establishes who may serve as the administrator of an intestate estate, since a person who dies with a will may name an executor. However, if there is no will, someone must step forward to manage the estate and serve as the representative. However, if there is uncertainty and no overt designation of an administrator, Illinois has established an order of priority for who may represent an estate and serve as administrator.
This is also primarily which is based on the family relationships between a decedent and other individuals interested in becoming a representative. For example, the top priority is given to the spouse, and then, in descending order, to the kids, siblings, parents, and the guardian of one of the beneficiaries. It is also important to note that a creditor could open an estate for a decedent in Lombard rather than a family member. However, they are the lowest priority.
The priority is a strict rule. In Illinois, a judge would prioritize the matter as their main concern. If there are competing petitions, and one petition takes priority over the other, the judge will most often grant the petition with greater priority.
Where it gets tricky is when petitioners have similar or identical priority levels. The classic example is when there is no spouse, and the only petitioners are the decedent’s two children. The judge needs to determine, in the estate’s best interests, who should serve as the representative.
Priority commonly comes into play beyond the distribution of assets in Lombard in the context of debts and claims. A priority as to where money goes is superseded by claims. For the amount available to beneficiaries, distribute the estate in the order of priority: first to the heirs, then to the debts and claims. The heirs and beneficiaries are only entitled to the net estate. The net estate is all the receipts an estate has and all its assets, reduced not only by the expenses of administration but also by the claims.
In Illinois, this is addressed under the claims statute, which provides that all administration expenses are first-class claims against the estate.
This means that if the entire estate is paid to a creditor, nothing may be available for distribution to the heir. Priority among the heirs does not take effect until all claims are paid; thereafter, the net amount is distributed in the order of priority.
It is not uncommon for people elected as estate representatives to find it challenging. Distributing the estate to beneficiaries in Lombard, however, does not need to be challenging. With the help of an attorney, you could pay off creditors and valid claims. All it takes is a call to a local attorney. Reach out today.
