Illinois Probate Avoidance

To accomplish these probate avoidance techniques in Illinois, you'll need to understand both Illinois state laws and relevant federal laws. Here's a breakdown for each technique:

1. Set Up Payable-on-Death (POD) Accounts:

   • Illinois Law: Under the Illinois Probate Act of 1975, POD accounts are recognized. The account owner can designate a beneficiary to receive funds upon their death.
   • Federal Law: Federal law doesn't specifically govern POD accounts, but IRS rules on inherited assets and taxes may apply.

2. Name a Beneficiary for Your Retirement Accounts:

   • Federal Law: Retirement accounts are governed by federal law (ERISA for employer-sponsored plans, IRS rules for IRAs). Beneficiaries can be designated directly on these accounts, bypassing probate.
   • Required Minimum Distributions (RMDs): Governed by federal tax law, RMDs must be taken by account owners and beneficiaries under certain conditions.

3. Name a Beneficiary for Stocks and Bonds:

   • Transfer-on-Death Registration: This allows you to name a beneficiary for stocks and bonds. It's recognized in Illinois under the Uniform Transfer-on-Death Securities Registration Act.
   • Government Bonds: Federal regulations govern the registration of beneficiaries for U.S. government bonds.

4. Name a Beneficiary for Your Vehicles:

   • Illinois Law: Illinois allows for transfer-on-death registration for vehicles, enabling a beneficiary designation.
   • Joint Ownership With Right of Survivorship: This option bypasses probate. Illinois law recognizes this form of ownership for vehicles.

5. Name a Beneficiary for Real Estate (TOD Deeds):

   • Illinois Law: Illinois Residential Real Property Transfer on Death Instrument Act allows for TOD deeds for real estate.
   • Considerations: This law outlines how to create, sign, record, amend, and revoke TOD deeds.

6. Hold Property in Joint Ownership:

   • Illinois Law: Types of joint ownership recognized in Illinois include joint tenancy, tenancy by the entirety (specific to married couples), and community property (although Illinois is not a community property state).
   • Probate Avoidance: These forms of ownership generally allow property to pass to the surviving owner(s) without probate.

7. Create a Living Trust:

   • Illinois Trust and Trustees Act: Governs the creation and operation of trusts in Illinois.
   • Probate Avoidance: A properly funded living trust can avoid probate for the assets it holds.
   • Federal Law: Federal tax laws impact trusts, particularly in the area of estate taxes.

8. Special Procedures for Small Estates:

   • Illinois Law: Illinois Probate Act allows for simplified procedures for small estates (those under a certain value threshold).
   • Claiming Assets: Affidavits can be used to claim wages and other assets without full probate.

For each of these methods, it's crucial to comply with specific legal requirements and to understand the tax implications. It's advisable to consult with an estate planning attorney to ensure that all legal formalities are correctly handled. Remember, while I can provide information on these topics, I cannot give legal advice.