Estate Planning in Illinois

Like all states, Illinois recognizes formally executed wills and living trusts as valid estate planning tools. A standard will here requires 2755 ILCS 5/4-3Verified Oct 18, 2026View source adult witnesses. Illinois doesn't offer a self-proving affidavit at the time you sign your will. Instead, your witnesses may need to provide sworn statements during probate to verify they watched you sign. Keep their contact information current—if they can't be located, proving the will becomes more complicated.

An Illinois healthcare power of attorney is signed before 1755 ILCS 45/4-10Verified Oct 15, 2026View source witness; notarization is not required755 ILCS 45/4-10Verified Oct 15, 2026View source. Witnesses must be at least 18 years755 ILCS 45/4-10Verified Oct 15, 2026View source old and cannot be the named agent or the principal’s healthcare providers. The agent must be at least 18 years755 ILCS 45/4-10Verified Oct 15, 2026View source old, and Illinois bars the principal’s healthcare providers from serving, subject to the statute’s exceptions.

An Illinois financial power of attorney is signed before 1755 ILCS 45/2-3, 45/2-5, 45/2-8, 45/2-10.6, 45/3-3, 45/3-3.6, 45/3-4; 765 ILCS 5/28; 755 ILCS 5/11-1Verified Sep 18, 2026View source witness and a notary755 ILCS 45/2-3, 45/2-5, 45/2-8, 45/2-10.6, 45/3-3, 45/3-3.6, 45/3-4; 765 ILCS 5/28; 755 ILCS 5/11-1Verified Sep 18, 2026View source; both are required. The document is durable by default755 ILCS 45/2-3, 45/2-5, 45/2-8, 45/2-10.6, 45/3-3, 45/3-3.6, 45/3-4; 765 ILCS 5/28; 755 ILCS 5/11-1Verified Sep 18, 2026View source: it stays in effect if the principal becomes incapacitated. A springing power of attorney, one that takes effect only when the principal becomes incapacitated, is permitted755 ILCS 45/2-3, 45/2-5, 45/2-8, 45/2-10.6, 45/3-3, 45/3-3.6, 45/3-4; 765 ILCS 5/28; 755 ILCS 5/11-1Verified Sep 18, 2026View source.

Illinois imposes its own estate tax on estates exceeding $4,000,00035 ILCS 405/2Verified Sep 15, 2026View source, with a top rate of 16%35 ILCS 405/2Verified Sep 15, 2026View source. This is separate from the federal estate tax and applies at a much lower threshold—the federal exemption is $15,000,00026 USC 2001(c), 2010; P.L. 119-21 §70106Verified Sep 15, 2026View source. Families with estates near this threshold often use trusts and lifetime gifting to reduce exposure.

Illinois does not require a revocable living trust to be notarized760 ILCS 3/101 et seq.Verified Oct 17, 2026View source. Illinois allows transfer-on-death deeds for real estate, enabling property to pass directly to named beneficiaries without probate. This is a significant probate avoidance tool that doesn't require creating a trust. Transferring property into a revocable trust does not trigger a property tax reassessment in Illinois, so property taxes remain at their current level.

Illinois automatically revokes an ex-spouse as beneficiary on life insurance, retirement accounts, and similar designations upon divorce. However, these automatic revocations can be overridden by a divorce decree or by re-designating the ex-spouse after the divorce. Illinois does not protect inherited IRAs from creditors. Unlike the owner's own retirement accounts, inherited IRAs in Illinois are vulnerable to creditor claims, which is an important consideration when naming beneficiaries.

Illinois fully authorizes remote online notarization (RON) for estate planning documents, including wills, trusts, healthcare directives, powers of attorney. RON covers the notarization step; whether the whole signing can happen remotely also depends on whether the document's witnesses may attend by video.