One of the many benefits of working with an attorney to establish an estate plan is that you are able to include unique provisions within your documents that are tailored to your family and your needs. This article will discuss the optional provisions includable in an estate plan for family members to purchase real estate, pet trusts, and installment gifts.
Option to Purchase Real Estate
If you own a piece of real estate that a member of your family wishes to own after you pass away, you are allowed to include provisions within your Will or Trust that give that family member the option to purchase the real estate. One benefit of these provisions is that it allows your real estate to remain in your family with a person who will continue to take care of the property while also providing liquidity to your estate for simpler distribution to other beneficiaries. There are additional provisions you may wish to include such as a discount to the fair market value of the real property for the person purchasing.
Pet Trusts
Many individuals have pets which they consider to be a part of their family. What happens to your pets after you pass away?
In Illinois, your pets are considered property and will be distributed with your other assets. If you wish for your pets to go to specified individuals and you wish for money to be given to those individuals to help care for your pets, you may establish a Pet Trust within your estate planning documents. Within this Pet Trust, you may select a list of individuals your trustee can contact to see if they are willing to care for your pets after you pass away, and you can determine how much money to include in the Pet Trust to offset the cost of caring for your pet. This way, you know your pet will be taken care of by someone you trust.
Installment Gifts
You may have loved ones you wish to provide gifts for upon your death, but maybe you don’t think they should get everything at once. The gifting language of your Will or Trust can include provisions so that beneficiary’s gift is distributed in portions upon them reaching age milestones. For instance, they could receive 1/3 of their gift at age 25, one half of the remaining balance at age 30, and the balance of the gift at age 35. This type of gifting allows you to gift them large sums of money while also ensuring it won’t all be spent in a short amount of time.
If you have any questions on the above types of estate planning provisions or are curious if other types of provisions are available, feel free to reach out to our office for a consultation.