Estate Planning in Illinois: Where a Financial Advisor Fits
Estate planning involves decisions about how assets are managed and transferred, who will receive them, and who may make financial or healthcare decisions if you are unable to do so.
For Illinois families, the planning process can also involve state-specific considerations. An estate planning financial advisor in Illinois can help connect the financial aspects of an estate plan with investments, retirement accounts, taxes, charitable goals, and other assets.
What Role Does a Financial Advisor Play in Estate Planning?
Estate planning documents are generally prepared by an attorney. A financial advisor serves a different role by helping clients evaluate how their financial assets and planning decisions fit with the estate plan.
That work may include:
Reviewing account ownership and beneficiary designations
Identifying assets that may require additional planning
Discussing wealth transfer goals
Evaluating charitable giving strategies
Coordinating investment and retirement accounts with estate objectives
Identifying financial changes that may warrant an estate plan review
Working with an estate planning attorney or tax professional when appropriate
Many advisory firms, including VestGen Wealth Partners, incorporate estate planning considerations into broader financial planning and work with estate planning attorneys when legal documents or legal advice are needed.
Why Illinois Estate Planning Deserves Specific Attention
Illinois residents may have planning considerations that differ from those in other states.
Illinois currently imposes an estate tax, which is administered by the Illinois Attorney General. For individuals and families with substantial estates, this makes it particularly important to discuss potential estate tax exposure with qualified legal and tax professionals.
Estate tax laws can change, and the calculation can depend on several factors. An estate planning financial advisor in Illinois can help identify when estate tax considerations may need to be incorporated into financial discussions, while an attorney or tax professional can provide advice specific to the individual's situation.
Beneficiary Designations Need Attention Too
A will or trust is only one part of an estate plan.
Retirement accounts, life insurance policies, and certain other accounts may transfer according to beneficiary designations. This makes reviewing those designations an important part of keeping financial accounts coordinated with estate planning intentions.
Changes such as marriage, divorce, the birth of a child, a death in the family, or a significant change in wealth can create a reason to revisit beneficiaries and other estate planning arrangements.
Firms such as VestGen Wealth Partners may include these estate planning considerations within ongoing financial planning while coordinating with the client's attorney on legal matters.
When Should You Revisit an Estate Plan?
An estate plan can become outdated as life and finances change.
A review may be appropriate following:
Marriage or divorce
Birth or adoption of a child
Death of a beneficiary or fiduciary
Significant changes in wealth
Sale of a business
Retirement
Receiving an inheritance
Changes in charitable intentions
Moving to another state
Changes in estate or tax laws
Regular reviews can also provide an opportunity to confirm that account titles, beneficiaries, and financial arrangements remain consistent with current intentions.
Building a Coordinated Professional Team
Estate planning can involve several professionals. An attorney can prepare legal documents and provide legal advice. A tax professional can address specific tax questions. A financial advisor can help organize the financial information and identify areas where investment, retirement, insurance, or wealth transfer decisions intersect.
One example is VestGen Wealth Partners, where estate planning is considered alongside other areas of financial planning and coordination with estate planning attorneys is available when appropriate.
Conclusion
Working with an estate planning financial advisor in Illinois can help connect estate considerations with the broader financial picture. Account ownership, beneficiaries, investments, retirement assets, charitable intentions, and potential tax considerations may all play a role.
The appropriate approach depends on each family's circumstances. Firms such as VestGen Wealth Partners provide one example of how estate planning considerations can be incorporated into an ongoing financial planning relationship while legal matters remain with qualified estate planning attorneys.
Frequently Asked Questions
Can a financial advisor create an estate plan?
Financial advisors may assist with the financial aspects of estate planning, but legal documents and legal advice should be handled by a qualified attorney.
Does Illinois have an estate tax?
Yes. Illinois imposes an estate tax, which is administered by the Illinois Attorney General.
When should beneficiary designations be reviewed?
Beneficiary designations may warrant review after significant family or financial changes and as part of periodic estate planning reviews.