Free Estate Plan from the State of Illinois

The State of Illinois has provided a free Will for people who—for any number of reasons—have not prepared a Will.

Like many things that are free or low cost do-it-yourself, you may not be pleased with the results.

The State of Illinois “free” version that I have reproduced below is for a married couple with one or more children. 

If you are not married or if you have a domestic partner the “free” Will that the State of Illinois provides for you may be even less satisfactory.

Here is Mr. Smith's "Free" Will from the State of Illinois

Last Will and Testament of John Smith

Drawn Up For Him by The State of Illinois Because He Died Without a Valid Will

I, John Smith, a resident of Illinois, do hereby accept this to be my Last Will and Testament drawn by the State of Illinois, because I do not otherwise have a valid will.

1.0       I give my wife one-half (1/2) of my assets, which I own in my own name, and I give my children the remaining one-half (1/2).

1.1       I appoint my wife as guardian of my children, but as a safeguard I require that she report to the Probate Court each year and render an accounting of how, why, and where she spent the money necessary for the proper care of my children.

1.2       As a further safeguard, I direct my wife to produce to the Probate Court a Performance Bond to guarantee that she exercises proper judgment in the handling, investing, and spending of the children’s money.

1.3       As a final safeguard, my children shall have the right to demand and receive a complete accounting from their mother of all her financial actions with their money as soon as they reach legal age.

1.4       When my children reach age eighteen (18) they shall have full rights to withdraw and spend their shares of my estate. No one shall have any right to question my children’s actions on how they decide to spend their respective shares.

2.0       Should my wife remarry and also die without a will, her second husband shall be entitled to one-half (1/2) of everything my wife owns in her own name.

2.1       Should my children need some of this share for their support, the second husband shall not be bound to spend any part of his share on my children’s behalf.

2.2       The second husband shall have sole right to decide who is to get his share, even to the exclusion of my children.

3.0       Should my wife predecease me or die while any of my children are minors, I do not wish to exercise my right to nominate the guardian of my children.

3.1       Rather than nominating a guardian of my preference, I direct my relatives and friends to get together and select a guardian by mutual agreement.

3.2       In the event that they fail to agree on a guardian, I direct the Probate Court to make the selection. If the court wishes, it may appoint a stranger acceptable to it.

4.0       Under existing tax law, there are certain legitimate avenues open to me to lower death taxes. Since I prefer to have my money used for governmental purposes rather than for the benefit of my wife and children, I direct that no effort be made to lower taxes.

IN WITNESS WHEREOF, I have set my hand and seal to this, my Last Will and Testament, consisting of two (2) typewritten pages, on this __________ day of ____________, 20__.

_________________________ (SEAL)

John Smith

Disclaimer

This is a passive blog and the materials contained herein are provided for informational purposes only. Nothing contained in this blog should be interpreted as a solicitation of business and none of the information contained herein constitutes legal advice. The law is subject to change without notice, and the local laws of your residence may be different from the general information displayed on this blog. You should not rely on the information provided on this blog without first consulting an attorney. Contacting this website does not establish and attorney/client relationship between you and its publisher Christopher W. Matern.

An attorney/client relationship can only be established with Christopher Matern by engaging in direct person-to-person contact with Christopher Matern. Christopher Matern does not intend to practice law in any jurisdiction in which he is not licensed.

Proposed Bankruptcy Law May Reduce Foreclosures

An article in the Daily Herald (link to article) predicts that new bankruptcy legislation may be passed this month.

This new legislation would empower federal bankruptcy judges to modify residential mortgages including reducing the principal, the interest and the monthly payment.

Bankruptcy is an extreme solution that persons should never take lightly, but with this new legislation it might provide a way for people in financial trouble to keep their homes.

It could also help the real estate market recover.   While real estate appraisers valuing neighboring homes might consider that a bankruptcy judge had reduced the loan principal, which is better for a neighborhood -- an occupied home  home or a boarded-up bank owned house.

A Good Time for Estate Planning

In today's economic situation, estate planning maybe the last thing to consider.  But with the stock and real estate markets depressed as well as historically low interest rates now may be a very good time to do some planning.

Below is a link to a Wall Street Journal article that discusses some of the many different ways that people can use the depressed markets and low interest rates for their benefit.

http://online.wsj.com/article/SB123249848140700515.html

Power of Attorney for Property Concerns

A Power of Attorney for Property is an important document to have in your estate plan.  It is a very powerful tool that authorizes someone else to handle your financial affairs in the event that you cannot do so.  However, like other types of powerful tools--it can be very dangerous if not used properly.

On Sunday February 1st, Eileen Ambrose wrote a good article in the Chicago Tribune cautioning people when they give a Power of Attorney over their property.  Below is a link to the article.

http://www.chicagotribune.com/business/yourmoney/chi-ym-attorney-0201feb01,0,5256908.story

The article discusses the risks when someone gives a Power of Attorney for Property to a person who is not unscrupulously honest.  It is best to name someone whose honesty is beyond question; someone who is strong enough to resist temptation.

This philosophy also should apply to persons named as sucessor holders of the Power of Attorney for Property.

The article's other good suggestion is to require that the Power of Attorney document include a requirement that the holder must provide copies of the account statements to another person you trust.  The person would look at the account statements and raise an alarm if they suspected embezzlement.

A Power of Attorney for Property is very useful document, but it must be used carefully.

Disclaimer

This is a passive blog and the materials contained herein are provided for informational purposes only. Nothing contained in this blog should be interpreted as a solicitation of business and none of the information contained herein constitutes legal advice. The law is subject to change without notice, and the local laws of your residence may be different from the general information displayed on this blog.  You should not rely on the information provided on this blog without first consulting an attorney. Contacting this website does not establish and attorney/client relationship between you and its publisher Christopher W. Matern. 

 An attorney/client relationship can only be established with Christopher Matern by engaging in direct person-to-person contact with Christopher Matern.  Christopher Matern does not intend to practice law in any jurisdiction in which he is not licensed.