Do I Really Need a Will? What Happens If I Die Without One?

Illinois Estate Planning Series — Article 1 of 5

Many people put off creating a will because they believe they don't have enough money or property to need one. Others assume that if something happens to them, their spouse or children will automatically inherit everything.

Unfortunately, it's not always that simple.

A will is one of the most important estate-planning documents you can have. It allows you to express your wishes about how certain property should be distributed after your death and who should be responsible for handling your estate.

When someone dies without a valid will, they are considered to have died "intestate."

In Illinois, state law determines who inherits the property that would otherwise pass under a will.

For example, if you are married and have children, Illinois law generally divides your intestate estate equally between your surviving spouse and your descendants. If you have a surviving spouse but no descendants, your spouse generally inherits the entire intestate estate.

If you are unmarried, your property may pass to your children, parents, siblings, or other relatives, depending on your family circumstances.

These rules may not reflect your personal wishes.

Without a will naming an executor, the court may also need to appoint someone to administer your estate.

A properly prepared will can help you:

• Identify who should receive certain property and possessions.
• Name the person you want to serve as executor.
• Nominate a guardian for minor children.
• Make specific gifts to relatives, friends, or charitable organizations.
• Provide clearer instructions that may help reduce confusion among family members.
  

However, having a will does not automatically eliminate probate or guarantee that disagreements will never occur.

Here's a question many people overlook:

"If I die owing money on credit cards, a mortgage, or a car loan, will my family have to pay those debts?"

Generally, family members do not automatically inherit a deceased person's debts.

Instead, valid creditor claims are ordinarily handled through the deceased person's estate, subject to applicable Illinois law.

There are important exceptions. A surviving co-borrower or co-signer may remain responsible for a debt. Mortgages and car loans also remain secured by the property involved. Certain obligations involving spouses can require additional legal consideration. If an estate has insufficient assets to pay all its debts, surviving children generally are not required to pay the difference from their own funds merely because they are heirs. We'll explore this important subject in greater detail in Article #3 of our series.

Not exactly.

A will is only one component of an estate plan.

For example, life insurance proceeds, retirement accounts, and certain jointly owned assets may transfer directly to designated beneficiaries or surviving owners rather than through a will.

Other important documents, such as powers of attorney for healthcare and property, can help protect your interests while you are still living.

An Illinois estate-planning attorney can help determine which documents and arrangements are appropriate for your circumstances.

You don't need a large investment portfolio, an expensive home, or substantial savings to benefit from estate planning.

For many families, the most important goal is simply to make their wishes known and reduce uncertainty for the people they care about.

Marriage, divorce, the birth of a child, the death of a loved one, or significant financial changes are all good reasons to review an existing estate plan.

A will gives you an opportunity to make important decisions rather than leaving those decisions entirely to Illinois inheritance laws.

While no document can prevent every complication, thoughtful planning may make an already difficult time easier for your loved ones.

Estate planning isn't only about what you own. It's about the people you care about and the decisions you make today to help protect their tomorrow.

Coming next in our Illinois Estate Planning Series: Article #2 — "Will Having a Will Keep My Family Out of Probate?"

Disclaimer: I am not an attorney, and the information provided in this article is not intended to constitute legal advice. The content is based on my general research of estate-planning information and Illinois law and is provided for educational and informational purposes only. Laws and individual circumstances can vary and may change over time. For advice regarding your specific situation, you should consult a qualified Illinois estate-planning attorney