Should I Give Away My Property Before Death Instead of Making a Will?

If you have assets that are of limited value, or if you have only a handful of seemingly simple assets (such as a savings account or a home), you might be wondering if it simply makes more sense to give away — or gift — your property to a loved one before you die instead of making a will and having a loved one go through the probate process. While it might make sense to gift assets to loved ones while you are still living in certain circumstances, there are also important reasons to avoid doing so. In addition, regardless of whether or not you plan to give away assets during your lifetime, it is critical to make a will to ensure that any property and estate issues you did not consider will be handled appropriately by an executor, and that your loved ones will not have to contend with the complications of intestate succession.

Our Oak Park estate planning attorneys can say more about the potential benefits and limitations under Illinois law of giving away assets during your lifetime that you would otherwise leave to a loved one in your will.

Potential Benefits of Giving Away Assets in Your Lifetime

For certain assets, such as objects with sentimental value and little to no market value, it might make sense to give these objects to your loved ones while you are still living in order to prevent any disputes between family members who might object to a particular family member owning or having possession of the object.

Depending on the value of your estate and whether or not your estate will be exempt from the federal estate tax, giving away certain assets could lower the overall value of your estate in order to make it exempt from the estate tax.

However, there can be very serious consequences of giving away assets that you will want to avoid.

Medicaid Penalties and Gifting Assets

If you are even considering giving away any assets of value to a family member, friend, or another party, it is important to discuss the potential implications with an estate planning lawyer. One of the most serious consequences is that you could be penalized if you gift assets and soon need long-term care through Medicaid.

While most people do not anticipate needing long-term care, many will, and giving away assets could jeopardize their eligibility for Medicaid coverage.

Contact an Estate Planning Attorney in Oak Park

Whether you are just starting to think about how to ensure that your loved ones receive your property according to your wishes when you pass away, or you have questions about estate planning in relation to Medicaid planning, you should get in touch with a lawyer who can help. At the Emerson Law Firm, our experienced Oak Park estate planning lawyers know that these issues are incredibly complicated, and we also know how important — and essential — they are to you. Do not hesitate to reach out to our firm to learn more about how we can assist you or someone in your family who has questions or concerns about estate planning. Contact the Emerson Law Firm for more information.



See Related Blog Posts:

Do I Need to Revisit My Estate Plan?

What is the Difference Between a Will and a Living Will?

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