Living Trust Attorney in Illinois — Probate Thresholds, Land Trusts and the Illinois Estate Tax

In Illinois, probate is usually required when someone dies owning real estate in their name alone or more than $100,000 in other assets. This guide from a living trust attorney in Illinois perspective explains how a living trust avoids that, and how Illinois-specific tools like land trusts and transfer-on-death instruments fit in.

Illinois also has its own estate tax, with a $4 million exemption. Consequently, families with homes, retirement savings and life insurance can reach the threshold sooner than they expect.

A properly drafted and funded living trust can avoid probate, simplify incapacity and help with estate tax planning. Therefore, Illinois families have good reasons to consider one.

When Illinois requires probate

Illinois generally requires probate if the person owned real estate in their own name, or if their probate personal estate exceeds $100,000. Below that threshold, and with no real estate, heirs can often use a small estate affidavit.

Illinois probate typically lasts at least six months, partly because creditors have a claims period after notice is published. Moreover, many estates take a year or longer. Independent administration is available in many cases, which reduces court supervision.

Our Probate Documents service helps executors when probate is unavoidable.

The Illinois estate tax

Illinois imposes its own estate tax on estates above $4 million. Unlike the federal tax, the Illinois exemption is not portable between spouses. Therefore, married couples can lose one spouse's exemption if their plan is not structured carefully.

A trust-based plan can preserve both spouses' exemptions. For example, a credit shelter trust at the first death can hold assets up to the exemption amount. As a result, those assets avoid Illinois estate tax at the second death.

A living trust consultation reviews whether your estate is near the threshold.

Illinois land trusts

Illinois land trusts are a distinctive local tool. In a land trust, a trustee, often a bank, holds legal title to real estate, while you keep the beneficial interest and control. Many Chicago-area properties are held this way for privacy.

A land trust alone does not avoid probate. However, the beneficial interest can be assigned to your living trust or given a successor beneficiary designation. Consequently, a land trust and a living trust can work together.

Funding your trust in Illinois

A trust only avoids probate for assets it actually owns. Therefore, funding is the step that makes everything work. Unfortunately, it is also the step people most often skip.

Real estate

Illinois homes are transferred to the trust by deed, recorded with the county recorder. Furthermore, Illinois allows a transfer-on-death instrument for real estate, which passes property at death without probate. Our TOD deed service prepares it. If your property is in a land trust, assign the beneficial interest to your living trust instead of recording a new deed.

Bank and investment accounts

Next, retitle bank and brokerage accounts into the trust's name, or add the trust as the payable-on-death beneficiary where the bank allows. Each institution has its own forms. Consequently, keep a checklist and confirm each change in writing.

Retirement accounts and life insurance

Retirement accounts usually stay in your own name. Instead, you name beneficiaries directly, sometimes with the trust as a contingent beneficiary. Similarly, life insurance can name the trust or individuals. Because tax rules for retirement accounts are complex, review these designations carefully.

Vehicles and personal property

Finally, an assignment of personal property moves household items into the trust. Meanwhile, vehicles can often pass by simplified procedures, so retitling may not be necessary. Our Living Trust package includes step-by-step funding instructions for Illinois.

Illinois powers of attorney

A complete Illinois plan includes an Illinois Statutory Short Form Power of Attorney for Property and a Power of Attorney for Health Care. These forms have specific witnessing and notary requirements. Moreover, a living will or declaration for mental health treatment may be added.

Our Estate Plan Bundle prepares these documents to Illinois standards. In addition, our durable power of attorney and healthcare directive services are available individually.

Flat fee living trust pricing in Illinois

Our Living Trust service starts at $199 for Illinois. The standard package tailors the trust to Illinois law, including estate tax provisions where appropriate. Meanwhile, the premium package adds attorney review.

If you already have a trust, a trust review checks whether it protects both spouses' Illinois exemptions. For more, read our national guide to flat fee living trusts.

A typical Illinois trust administration

When the trust creator dies, the successor trustee takes over without court involvement. First, the trustee secures assets and obtains death certificates. Next, the trustee notifies beneficiaries and, if needed, files estate tax returns.

After that, the trustee pays debts and expenses. Finally, the trustee distributes assets under the trust. Consequently, the family avoids the probate claims period and court supervision, saving time and cost.

Common trust mistakes in Illinois

The most common Illinois mistake is signing a trust but never deeding the home into it. Consequently, the home may still need probate, even with a trust in place. Another frequent issue involves land trusts. If the beneficial interest is never assigned to the living trust, the property may still pass through probate.

Married couples also make an estate tax mistake. Because Illinois does not allow portability, leaving everything outright to the surviving spouse can waste the first spouse's $4 million exemption. As a result, the family may pay Illinois estate tax that could have been avoided.

Out-of-state property

Many Illinois residents own vacation property in Wisconsin, Michigan or Florida. Without a trust, that property may need a separate probate in the other state. Therefore, deed it to your trust too.

Keeping the plan current

Finally, review your trust after major life events. For example, marriage, divorce, a new grandchild or a move to another state can all change what you need. Consequently, a periodic trust review is a small cost that prevents large problems later.

Blended families and minor children in Illinois

Blended families need careful planning. For example, a parent may want to provide for a new spouse while protecting an inheritance for children from an earlier marriage. In addition, Illinois gives a surviving spouse a right to renounce a will and claim a statutory share, which can affect plans for children from an earlier marriage. Therefore, a trust can hold assets for the surviving spouse during their lifetime and then pass the remainder to the children.

Similarly, a trust can manage money for minor children until they are older, instead of handing everything over at 18. Consequently, your family is protected in the way you intend.

Our Living Trusts services in Illinois

Every service below has a fixed price, is prepared by a qualified attorney and is delivered online — wherever you are in Illinois. Additionally, you can upload evidence, message your attorney and track progress from your secure client dashboard.

Living Trusts across Illinois — cities we serve

We work with clients in every part of Illinois, entirely online. Therefore, it does not matter whether you live downtown or hours from the nearest courthouse. Your documents follow Illinois law and your county's local practice. Choose your city below to see local details and prices.

• Chicago: Revocable Living Trust in Chicago · Complete Estate Plan Bundle in Chicago · Living trust consultation in Chicago
• Aurora: Revocable Living Trust in Aurora · Complete Estate Plan Bundle in Aurora · Living trust consultation in Aurora
• Naperville: Revocable Living Trust in Naperville · Complete Estate Plan Bundle in Naperville · Living trust consultation in Naperville
• Joliet: Revocable Living Trust in Joliet · Complete Estate Plan Bundle in Joliet · Living trust consultation in Joliet
• Rockford: Revocable Living Trust in Rockford · Complete Estate Plan Bundle in Rockford · Living trust consultation in Rockford
• Springfield: Revocable Living Trust in Springfield · Complete Estate Plan Bundle in Springfield · Living trust consultation in Springfield
• Elgin: Revocable Living Trust in Elgin · Complete Estate Plan Bundle in Elgin · Living trust consultation in Elgin
• Peoria: Revocable Living Trust in Peoria · Complete Estate Plan Bundle in Peoria · Living trust consultation in Peoria
• Evanston: Revocable Living Trust in Evanston · Complete Estate Plan Bundle in Evanston · Living trust consultation in Evanston
• Schaumburg: Revocable Living Trust in Schaumburg · Complete Estate Plan Bundle in Schaumburg · Living trust consultation in Schaumburg

More Illinois services

Complete Estate Plan Bundle in Illinois · Living trust consultation in Illinois · Durable Power of Attorney in Illinois · Advance Healthcare Directive / Living Will in Illinois · Probate Documents Package in Illinois · Trust review in Illinois. See all legal services in Illinois.

Nearby states

Moving between states, or is the other party elsewhere? We also cover Revocable Living Trust in Indiana, Revocable Living Trust in Wisconsin, Revocable Living Trust in Missouri, Revocable Living Trust in Iowa, Revocable Living Trust in Kentucky. See every location we cover.

Frequently asked questions

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Related guides

This guide is general information, not legal advice for your situation. Every case is different — speak to a qualified attorney before you act.