Illinois residents might want to take a closer look at their estate planning strategies to ensure that they will not struggle with costly tax implications. Those who have significant assets have opportunities available to them as far as protecting their wealth and leaving a legacy for their families is concerned.
Formulating the perfect estate planning strategy may be challenging because of changing laws and uncertain economic climates. It is important to plan when conditions are favorable. For example, in 2020, the Internal Revenue Service increased the maximum allowable tax deductions for individuals and couples. However, prepare for a decreased allowable amount beginning in 2025.
Business owners and individuals have several options to preserve assets. Gifting income or shares in a business may be allowable under the current tax laws, giving people control over their asset distribution as well as offering potential tax savings. Creating a guardianship, revocable trust or special needs trust may be ideal for some estate plans, while an irrevocable trust or health proxy may align with others.
However, people tend to postpone the estate planning process. While some may believe they do not have the time to formulate an estate plan, others may not want to relinquish control of their assets and may not be familiar with all the information available to them.
Those who are unsure about their estate plans may benefit from speaking with a knowledgeable lawyer who understands wills, trusts and drafting estate planning documents. A lawyer may recommend a living will or power of attorney as part of an estate plan. Each situation is unique. Individuals and businesses may benefit from seeking legal advice from professionals who can help them navigate through a complicated estate planning process as well as the will execution following the loss of a loved one.