What Assets Must Go Through Probate in Illinois?

What is the Purpose of the Probate Process in Illinois?

Probate is a legal process that occurs after a person’s death to validate their will, settle their outstanding debts, pay necessary taxes, and appropriately distribute their remaining assets to beneficiaries. In Illinois, certain assets must go through probate, while others can bypass this process. Understanding which of your assets may be subject to probate and how it works is crucial for effective estate planning and administration.

While probate serves important legal functions, it can also be time-consuming and costly. By working with a trusted Illinois estate planning attorney, you can explore the most efficient ways to transfer your property to your loved ones and make the process as simple and hassle-free as possible.

What Assets Could Be Subject to Probate in Illinois?

In Illinois, the assets subject to probate are those that do not have a direct mechanism for transfer to beneficiaries upon the owner’s death. These assets require court supervision to ensure proper distribution according to the deceased’s will or state intestacy laws if no will exists. Examples of assets subject to probate may include:

• Real estate: Any property owned as tenants in common with someone else or owned solely by the deceased generally falls under probate jurisdiction. Primary residences, rental properties, vacation homes, and business properties can be included. The probate court will supervise the transfer of these properties to ensure they are distributed according to the deceased’s will or state intestacy laws if no will exists
• Bank accounts: Accounts that are only in the decedent’s name or those without a payable-on-death designation will need to go through the probate process, including checking accounts, savings accounts, and certificates of deposit that do not have joint ownership or beneficiary designations
• Personal property: Tangible items such as cars, jewelry, artwork, furniture, and other personal belongings may need to be inventoried, appraised, and distributed through the probate process, especially if they are of significant value or if there are disputes among potential heirs

What Illinois Assets are Exempt From the Probate Process?

In Illinois, certain assets are exempt from probate, meaning they can transfer directly to beneficiaries without the need for court involvement. These exemptions are designed to streamline the process of asset distribution and reduce the time, cost, and complexity often associated with probate. By leveraging the following exemptions, individuals can ensure that their loved ones receive their inheritance more efficiently while maintaining privacy and minimizing legal hurdles:

• Jointly owned property: Assets held in tenancy by the entirety or joint tenancy automatically pass to the surviving owner upon the death of one owner, such as real estate, bank accounts, and other jointly owned property. The “right of survivorship” ensures these assets bypass probate entirely, as ownership is transferred directly to the surviving co-owner
• Assets with beneficiary designations: Life insurance policies, retirement accounts such as IRAs and 401(k)s, and bank accounts with named beneficiaries are exempt from probate. These assets transfer directly to the designated beneficiaries upon the owner’s death, avoiding court involvement
• Payable-on-Death (POD) and Transfer-on-Death (TOD) accounts: Financial accounts, securities, and even real estate can be set up with POD or TOD designations. These allow the named beneficiaries to inherit the assets directly without going through probate, provided they are still alive at the time of the account holder’s death
• Property held in a living trust: Assets transferred to a revocable or irrevocable living trust do not go through probate. The trust owns these assets during the grantor’s lifetime, and upon their death, the trustee distributes them to beneficiaries according to the trust terms
• Assets transferred by Illinois homestead exemption: A homestead exemption protects up to $15,000 of a deceased individual’s primary residence from creditors and probate proceedings. If jointly owned, this exemption can extend up to $30,000 for married couples

What Special Considerations Exist in the Illinois Probate Process?

Illinois law provides some alternatives to full probate for certain situations. For estates valued at $100,000 or less with no real estate, a Small Estate Affidavit may be used. This simplified process allows for a quicker and less expensive transfer of assets without going through full probate proceedings.

The decedent’s property will be subject to probate under the jurisdiction of Illinois if they are a state resident. However, if the deceased owned real estate in another state, ancillary probate may be required in that location. This additional probate process ensures that all real estate assets are correctly administered according to the laws of the state where they are located. Consulting a knowledgeable probate attorney is highly recommended, as these cases can become complex.

For married individuals, it’s also important to consider how spousal rights could affect the distribution of assets through probate. Illinois law provides certain protections for surviving spouses, which may affect how assets are distributed, even if a will specifies otherwise. Careful preparation with the assistance of an estate planning lawyer can help you ensure that your estate is passed to your beneficiaries in the way you wish without issues or surprises.

How Can a Skilled Attorney Guide You Through the Estate Planning and Probate Process?

Navigating the probate process in Illinois can be a complex and time-consuming endeavor, especially when dealing with significant assets or multiple heirs. Knowing which property may be exempt from or subject to probate is crucial for ensuring a smooth transfer of property to beneficiaries. Seeking skilled legal assistance is essential in this process, as an experienced estate planning attorney can provide invaluable guidance, minimize disputes, and ensure compliance with state laws.

By working with an experienced estate planning lawyer from Nery Richardson & Konewko LLC, you can protect your estate’s value, reduce unnecessary delays, and ensure that your assets are passed efficiently and fairly to your loved ones. To schedule an in-depth consultation with a trusted Chicago law firm, contact us today at 773-232-6643.