What is an estate plan?

An estate plan is a set of legal documents designed to ensure that your assets are distributed according to your wishes after you pass away. An estate plan enables you to control how your assets will be distributed, when they will be distributed, and to whom they will be distributed. It also enables you to designate someone to manage your affairs in the event of your incapacity. Estate planning is important for any Illinois resident who wishes to have control over their assets after death. The main documents in an estate plan are a will and a trust. A will is a written document that outlines your wishes for the distribution of your assets after your death. A trust is a legal document that allows for the management of your assets during your life and after your death. Trusts are often used to protect assets from creditors, provide for minor children or other dependents, and to reduce tax liabilities. In addition to a will and trust, other components of an estate plan include advanced healthcare directives, powers of attorney, guardianships, and asset protection plans. Advanced healthcare directives document your wishes for medical care in the event that you become incapacitated. Powers of attorney transfer decision-making authority to another person while you are alive and if you become incapacitated. Guardianships appoint someone to manage the affairs of a minor or disabled adult. Asset protection plans help protect your assets from creditors and the costs of long-term care. An estate plan is an important tool for ensuring that your wishes are honored and that your assets are distributed according to your wishes. It is important to consult with an attorney and an accountant to ensure that your estate plan is properly prepared, up-to-date, and tailored to meet your specific needs and goals.

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