Do Teachers Need an Estate Plan?

 Posted on July 12, 2024 in Estate Planning

Like other public servants, teachers work incredibly hard to deliver an essential service to society. Without teachers, none of us would even be able to read this blog. Nevertheless, problems with low teacher salaries and retirement benefits doggedly persist, leaving many educators wondering how they can pass financial stability forward to their families after they pass away.

If you are reading this, perhaps you are a teacher with questions about your own future. Or perhaps you are the son or daughter of a teacher, and you are wondering what you can do to help your parents set up their estate plan. In this blog, we will try to answer some of the most common questions about teachers, pensions, investments, and estate plans. For answers to your specific situation, give our Illinois estate planning attorneys a call.

Should a Teacher Have a Will or a Trust? 

Many educators assume that since their pensions or defined contribution funds have death benefits, it does not make sense for them to write a will or set up a trust. Nothing could be further from the truth. Just like everyone else, educators deserve to have their final wishes expressed and protected in estate planning documents.

This is especially true if an educator has a spouse, minor children, disabled adult children or wants to bequeath his or her estate to a charitable cause. Writing a will helps protect your family from unnecessary disagreements and ensure your wishes are respected.

What Happens to a Pension if a Teacher Passes Away? 

One of the most enticing benefits of being a public school teacher in Illinois is the retirement pensions that teachers accumulate over the years. The Illinois Teachers’ Retirement System provides both survivor benefits and beneficiary refunds.

If a teacher has a minor child or a disabled dependent, a trust can receive survivor benefits. Trusts not only allow an estate to avoid the probate process, but they can also contain specific instructions for how certain assets should be managed or distributed over time.

What Should a Teacher Have in an Estate Plan Besides a Will or a Trust? 

Estate plans do more than just distribute an estate after death. They can also contain vital documents allowing teachers to have their wishes protected if they are alive but unable to care for themselves.

For example, having a power of attorney in an estate plan guarantees that if you cannot make decisions for yourself, someone else whose judgment you trust can do so instead. You can decide exactly how and when a power of attorney is authorized to make decisions on your behalf.

Estate plans can also contain something called healthcare directives, which explain how you want to be medically treated in your last days. If you want a DNR order under certain circumstances, for example, you can put that in your healthcare directives. You can even have a specific power of attorney for healthcare decisions.

Contact a Kendall County, IL Estate Planning Attorney Today

Those who give the gift of education to others deserve to give the gift of a secure future to their families. Whether you are a teacher in a public school, private school, or university setting, your estate plan will have special requirements and considerations. At Gateville Law Firm, our Yorkville, IL estate planning attorneys appreciate the dedication and hard work it takes to be a teacher, and we will work hard to ensure your wishes are protected. Call us at 630-780-1034 to schedule your free consultation today.