What's unique about Illinois regarding estate planning and what do you think matters about that?

Illinois is one of the few states that actually has an estate tax. It also has an interesting probate process depending on where your assets fall. If you meet the estate tax threshold, then it's really important to understand it and work with it so that it's more beneficial to you and your family.

Regarding the probate process, it's important to know that Illinois wants you to hire an attorney to do that probate process. You have to consider whether you want to save your family money now or have them spend it out of pocket, or out of your estate, later. You have different options that can better suit your family situation.

What do you like best about clients in your area?

They're genuinely concerned about making things easy for their family and for each other. Whether they're a married couple, or a single individual, they're concerned about their nieces and nephews, or their siblings. They may have had a history of either really insane probate from their family or siblings, or they were gifted that ease of transfer. They want to give that gift to their loved ones.

What do clients in your community ask the most questions about?

Taxes. They actually worry about family members and their feelings getting hurt because they can't include everyone in their plan. However, we talk about using the property memorandum to help with that. They don't have to give them a chunk of money; they can gift them things from their home, which makes them feel better.

They are also concerned about property. They want to know where their property is going and if there is any type of lien that can come from that property due to nursing homes.

Why is Oath right for your clients?

We do a really great job of educating our clients about what their options are and how to best utilize those options while they're alive. In my market, I can either be hands-on with the client, or if they want me to do their work and just call them when I'm done, then I do that. I think it really allows for a boutique feel, depending on the client and their needs.

What story do you tell most at your workshops?

I tell my story every time because it involves a sudden death of a parent and an inability to handle affairs in time. Getting access to assets was a lengthy process. Even though it was just one house, one car, one account, it took years. There's absolutely no rhyme or reason why. That's just the way the probate court goes. There was no getting around it because it was an unfortunate event that no one expected.

Sharing this story helps lead the client into remembering their own mortality, which is typically why people don't move forward with their estate plan. They just don't think they're going to die, and as much as we all want to wish that, we do.

What, if any, state-specific documents do you prepare for your clients and why?

We do the short form financial power of attorney, medical power of attorney, advanced healthcare directive, HIPAA.

Our declaration for the last will is state-specific to Illinois, and is a verification that if you choose what I call the “let-go clause”, that you are of sound mind and are aware that this is your preference. I also have to quickly follow that up with, “You can verbally denounce this declaration at any time”. So the client doesn't feel like they're heading into disaster.

What do you estimate the longest possible probate is in Illinois?

Years. 5 to 10 years. It just depends on the size of the estate, the complexity of the estate, and the infighting within the estate. On average, I think it's more like 18 to 24 months.

It can be shorter depending on if you don't own property and your assets are under a hundred thousand, but it can take a long time.

How much do you think the most expensive probate might cost in Illinois?

If you have over 4 million,  you're getting cut out at least 20% or under right off the top, and that's not taking into account the fees that need to be paid to the court for their work on your case. On top of that, you'll also need to hire an attorney. So anywhere ranging from a couple thousand to tens of thousands.

If you had to pick one question that clients ask at your workshops, what would it be? And how do you answer it?

A lot of them are concerned about a couple of things. One, they're always asking, what's the difference between a will and a trust? Always. One goes to probate, one doesn't.

Then the tax conversation is more about what they can gift while they're alive. Many people who are in their 70s and 80s want to make things easier for their kids, often putting their children's names on the title of their home. Then we have to educate them that this is not the best route to go. It's better for children to inherit homes to avoid extra taxes like capital gains tax.

There's a cushion in the capital gains tax, but many of my clients bought their homes in the 70s and they've appreciated a lot. They also get alarmed when I advise them against putting their children's names on joint accounts, as it opens their money to the child’s liability. It's family dependent, but anyone can get into any creditor or lawsuit issues. You just don't want to expose your money to that.

What are your three favorite communities that you visit on your workshop schedule?

Geneva, Juliette and St. Charles are great areas!

What's the most impactful story that you've heard from one of your clients?

There was a widow who had recently lost her husband, leaving some beneficiary issues on his individual accounts that she had to try really hard for. Setting up a trust was one of the last things that was on their list that they wanted to get done together and then he died suddenly. For her, setting up the trust was not only a desire to make things easier on their kids, but also a fulfillment of their marriage promises.

Another client, a couple of mine, had a similar experience where the husband was hesitant to sign the trust documents. In this case, the husband was hesitant to do it while the wife was really engaged. They were scheduled to sign on a Wednesday, but he had a heart attack on the Monday before.

I went to the hospital on Tuesday and managed to get everything signed. He had to stay in the ICU for the whole week. When they finally got home, they called and thanked me for coming to the hospital and getting everything done, because it was a close call. They realized that if he had passed away, they would have had an incomplete plan.