Determining Remaining Estate Assets in Illinois
When a loved one passes, the personal representative must gather assets, pay debts and fees, then distribute what remains. This guide explains how to calculate the residuary estate under Illinois law.
Detailed Answer
- Identify and Value All Estate Assets. Gather probate assets—bank accounts, real property, investments, and personal property. Obtain professional appraisals for real estate and collectibles. Record each asset’s fair market value as of the date of death.
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List Debts and Administration Expenses. Under Illinois law, the personal representative must pay valid claims and costs before distributing assets (755 ILCS 5/24-1). Common items include:
- Secured debts (mortgages, liens)
- Unsecured debts (credit cards, medical bills)
- Administration costs (court filing fees, bond premiums, attorney fees)
- Funeral expenses and family allowances (755 ILCS 5/17-1)
- Homestead and family allowances (755 ILCS 5/16-1)
- Subtract Debts and Fees from Total Asset Value. Deduct the sum of valid claims and administration expenses from the estate’s total value. The result is the residuary estate.
- Account for Tax Obligations. Illinois has an inheritance tax; federal estate tax may also apply. File final income and estate tax returns by required deadlines to avoid penalties.
- Distribute the Residuary Estate. Once all debts, fees, and taxes are paid, distribute remaining assets according to the will or, if there is no will, under Illinois intestacy laws (755 ILCS 5/2-1.02).
Helpful Hints
- Organize asset records and appraisals in one secure file.
- Keep copies of all bills, receipts, and court filings.
- Maintain clear communication with beneficiaries throughout the process.
- Track deadlines for notices, accountings, and tax filings.
- Consult an attorney if you encounter complex assets or disputes.
- Prepare a detailed accounting of every transaction for transparency.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified Illinois attorney for guidance specific to your situation.