It’s sometimes difficult to understand the federal and state (for my purposes, Illinois) estate tax regimes and how they may affect you and your family. So this post and next week’s post will try to explain visually and very simply, what the implications may or may not be. And this visual is so simple that it serves a dual purpose – it illustrates why some things should be left to graphic designers and not clipart.
This week shows what can happen through December 31 of this year. Next week, you’ll get to see 2013.
7 Points to Ponder:
- If you’ve a minor child, then doing it yourself (DIY) is a bad idea;
- If you’ve real property, then the Small Estate Affidavit probably won’t work in Illinois;
- If you’ve more than $100K in personal and/or real property, then a DIY will likely end with your loved ones in court;
- A trust should generally always include a will but court shouldn’t be part of the deal;
- If loved ones end up in court with a sizable estate on a dispute regarding the estate’s value, then they may also end up with a tax bill;
- The typical cost to probate a will in Illinois (take it to court) starts at about $2500;
- If the trust is valid and the estate is under $5.12M, then both Uncles should walk away empty-handed.