Your 2025 Guide to Illinois Estate Planning

What are the most important parts of an estate plan?

You can structure your estate plan in a few different ways, most commonly with wills, trusts, powers of attorney (POAs), or a combination of legal documents.

Wills

A last will and testament, simply known as a will, directs how your property should be distributed after your death. You can also name an "executor," who is the person who carries out the wishes outlined in your will. If you have minor children, you might even name a guardian to care for them and manage their inherited property until they're adults.

All wills in Illinois must be in writing and meet certain requirements to be valid (755 ILCS Sections 5/4-1, 4-3, 4-6), including the following:

• You must be at least 18 years old and of "sound mind and memory."
• You must sign the will yourself or have someone else sign it in your presence and at your direction.
• Two or more credible witnesses must sign the will in your presence, but the witnesses can't be beneficiaries (if they are, their portion of inheritance is voided unless there are enough other witnesses). 

Under Illinois' Electronic Wills and Remote Witnesses Act, you can also create and sign a will electronically, and witnesses can participate via audio-video communication. However, since this is a relatively new law with specific technical requirements, it's advisable to consult an attorney to ensure you properly execute the will. 

Keep in mind that you can modify or revoke your will at any point after you create it. It's also worth noting that if you're married and get divorced, Illinois law (755 ILCS Section 5/4-7) automatically revokes any provisions in your will that benefit your former spouse. 

Trusts

While Illinois recognizes a few types of trusts, living trusts (also known as inter vivos trusts) are the most common for estate planning. When you create a living trust, you transfer your assets into it and set terms for how they should be managed and distributed. Since you transfer ownership of your assets to the trust before you die, there’s no need for them to go through probate (provided you set up and execute the trust correctly).  

These are the two types of living trusts.

• Revocable trusts: The more common choice for most Illinois residents. You maintain control as the trustee during your lifetime and can modify the trust's terms. After your death, the trust becomes irrevocable, and your appointed successor trustee will manage the trust property and distribute it according to your terms. 
• Irrevocable trusts: You typically can't modify the terms of an irrevocable trust and give up control over the trust assets after you create it. They're also more difficult to establish, so it's best to consult an estate planning attorney for advice. 

Although living trusts and last wills both specify your terms for property distribution, they're not complete substitutes for each other. In fact, it's common to create both estate planning documents—a living trust for major assets and a "pour-over" will to protect property that doesn't get transferred to the trust. 

Power of attorney for property

A power of attorney (POA) for property gives someone else, legally known as your agent, the power to handle your legal, business, or financial affairs. You can give your agent broad authority to handle everything as if they were you, or you might list specific powers or limited durations for them to act on your behalf.

All POAs for property are automatically "durable" in Illinois. In other words, the powers last even if you become incapacitated, but you can include provisions to remove this feature if desired (755 ILCS Section 45/2-5).

Illinois also has a statutory short form POA for property in the Power of Attorney Act. You can simply print and fill out the form yourself, but be sure to read all the instructions and warnings carefully. 

For instance, at least one witness must sign the POA before a notary public, but your witness can't be (755 ILCS Section 45/3-3.6):

• Your attending physician, mental health provider, or their relatives
• An owner or operator of your healthcare facility (or their relatives)
• Your parent, sibling, descendant, or their spouses
• The agent or successor agent named in the POA

You can find other templates, or you might work with an attorney or LegalZoom to create your power of attorney. In all cases (especially if you do it yourself), be sure to follow Illinois requirements for drafting and executing the document found in the state statute. 

Power of attorney for health care

A POA for health care—known in other states as an advance healthcare directive—lets you plan ahead for medical decisions and who you trust to communicate on your behalf. This includes the following: 

• A living will declaration that provides your doctor with written instructions for your end-of-life care preferences
• A designated medical agent or proxy who can make health decisions on your behalf while you're incapacitated 

Like the POA for property, Illinois has a healthcare POA statutory form. Whether you use this form or create your own, you should read all provisions carefully and reach out to an attorney if you have questions. Once your POA for health care is complete, you can provide copies to your physician, healthcare facilities, and medical agent so they have your wishes and powers granted on record. 

Beneficiary designations

Beneficiaries are the people you choose to inherit your assets, whether through a will, trust, or other means. However, certain assets require separate beneficiary designations, such as:

• Life insurance proceeds
• Bank accounts or retirement funds like 401(k)s
• Transfer-on-death (TOD) instruments

Since these assets can't be included in a will or trust, you'll want to name beneficiaries for each applicable account while creating your estate plan (if you haven't already done so). 

What's unique about Illinois estate plans?

Illinois estate planning laws are primarily found in the state's Compiled Statutes, though some aspects, like estate taxes, also apply at the federal level. Here's what to consider.

Community property

Illinois is an equitable division state, which means assets aren't automatically split 50/50 like they typically are in community property states. While this principle mainly applies to married couples who get divorced, it has important implications for estate planning, too. 

In the event a person dies without a will—or dies "intestate"—Illinois law determines how property is distributed to the decedent's family. Here's how assets typically flow (755 ILCS Section 5/2-1). 

• If you have a surviving spouse and children, your spouse receives half the estate, and your children split the other half. 
• If you have a surviving spouse but no children, the spouse inherits the entire estate. 
• If you have children but no surviving spouse, your children inherit the entire estate.
• If you have no spouse or children, the state goes to your closest living relatives in a particular order (starting with your parents, siblings, and their descendants). 

Keep in mind that prenuptial agreements may override these default distribution rules. The same is true if you create a will or trust, as you specify your own distribution terms. 

Estate taxes

Illinois imposes an estate tax, but it only applies to estates worth $4 million or more. If your estate exceeds this threshold, the entire amount—including the portion under $4 million—is subject to this tax. The Illinois Attorney General's Office provides a tax calculator and current forms to estimate potential tax liability, with marginal rates ranging from 0.8% to 16%. 

At the federal level, estates valued over $13,990,000 (as of 2025) must pay federal estate taxes, but this threshold changes every year. Additionally, you may owe federal gift taxes if you give more than $19,000 to your beneficiaries (per person), and you generally can't deduct these gifts from your income taxes.

Illinois probate

After someone dies, the executor named in their will initiates the probate court process. Here, the court confirms the deceased's final debts get paid and distributes their assets in accordance with the will. 

Not all assets need to go through Illinois probate, such as:

• Assets or property held in a living trust 
• Accounts with beneficiary designations
• TOD instruments
• Property owned in joint tenancy

Other assets, notably those distributed through a last will, must go through the probate process. However, Illinois has an exception for smaller estates. If the decedent's estate is valued under $100,000 and contains no real estate, beneficiaries can submit a small estate affidavit (found in the Probate Act) instead of going through the full court approval process.

Probate isn't always a negative experience, but if you have specific concerns or want advice for your family's situation, it's best to consult an estate planning attorney. 

When should you update your estate plan?

You can update your estate plan anytime you want to adjust terms, add or remove beneficiaries, or change other parts of your plan. In addition, it's a good idea to review and potentially update your plan when significant life changes occur, such as: 

• Marriage, remarriage, or divorce
• Birth or adoption of a child
• Major health changes
• Changes in employment status, income, or business ownership 
• Moving to a different state
• Acquiring or selling valuable property, such as a home or boat
• Death of a named executor, trustee, or beneficiary

The main exception is an irrevocable living trust, which typically can't be modified for any reason once it's established. For all other estate planning documents, you can revise as needed—just be sure to follow Illinois' legal requirements to document and execute any changes. 

How to start your estate plan today

A lot goes into estate planning, but keep in mind that you don't have to tackle everything at once. You might even be able to complete certain parts on your own, such as Illinois' statutory POA forms.

That said, it makes sense to work with an estate planning attorney or services like LegalZoom to create an estate plan that meets your and your family's needs. We can help you draft a last will or living trust along with the other supporting documents discussed, from POAs to healthcare directives. 

If desired, you can also connect with an attorney in our network who can review your estate plan and offer advice—all for a flat and predictable rate. 

FAQs

How much does estate planning cost in Illinois?

Estate planning costs depend on the exact way you structure your plan, and complex needs (such as irrevocable trusts) can vary widely in price. For more common documents like wills or revocable trusts, estate planning services can cost anywhere from $100 to $600 or more, while attorneys may charge thousands. Also, remember to factor in additional expenses like notary fees. 

How do you avoid probate in Illinois?

Many Illinois residents create a living trust to avoid probate. Other options include transfer-on-death (TOD) instruments and beneficiary designations, but keep in mind that probate isn't always avoidable. For the best strategy for your situation, consider reaching out to an estate planning attorney. 

What makes a will invalid in Illinois?

There are several ways to invalidate a will, such as not including a signature or having enough witnesses. However, it can be easy to overlook the witnessing requirements. Using a beneficiary as a witness can void their inheritance, even if the rest of the will is perfectly valid. 

Should you put your house in a trust in Illinois?

You can put a house (or other real estate property subject to probate) in a trust, but whether you should or not depends on your needs. You can also include a house in a will in Illinois, and both methods are valid as long as you follow the state's requirements. Still, each method has different implications, so it's helpful to speak to an attorney to determine the best approach.