Estate Planning FAQ
What does “estate planning” mean (beyond having a will)?
Estate planning often includes naming decision-makers (powers of attorney), outlining how assets transfer at death, updating beneficiary designations, and coordinating accounts so your wishes can be carried out efficiently.
Often, yes. Estate planning is as much about control, family protection, and avoiding avoidable complications as it is about taxes.
Illinois has a state estate tax threshold around $4 million. In many situations, once an estate crosses the threshold, Illinois estate tax may apply. Planning is often about understanding potential exposure early and coordinating steps with your attorney/CPA.
No. The federal exemption is separate and can be much higher than Illinois’ threshold. It’s possible to owe Illinois estate tax even when no federal estate tax is due.
Depending on the situation, the estate can include investment accounts, retirement accounts, real estate, business interests, and life insurance. Your attorney/CPA can confirm what applies in your case; we help coordinate account titling and beneficiary reviews to support the plan.
In many cases, yes. Retirement accounts and many financial accounts transfer by beneficiary designation, not by your will. That’s why beneficiary reviews are a core part of coordinated planning.
Inheritances from retirement accounts can carry income-tax consequences for beneficiaries. Coordinating beneficiary choices with your broader tax plan can help reduce surprises.
Common issues include outdated beneficiaries, missing or inconsistent powers of attorney, titling that doesn’t match intent, no plan for a business interest, and not accounting for state estate tax exposure (including the Illinois $4M threshold).
Not automatically. Trusts can help with control, creditor protection, and administration, and in some cases may support tax strategy—but they must be designed and implemented correctly by an attorney.
Not automatically. Trusts can help with control, creditor protection, and administration, and in some cases may support tax strategy—but they must be designed and implemented correctly by an attorney.
A common cadence is every 2–3 years, and also after major life events (marriage, divorce, birth, death, relocation, business sale, or a significant change in net worth or tax law).
Bring copies of your will/trust (if applicable), powers of attorney, a list of accounts and beneficiaries, life insurance details, and an estimate of major assets (including real estate and business interests).