Estate Planning Checklist for Gen X

For many Gen X adults, estate planning conversations start with a parent's health scare — and quickly reveal how little paperwork is actually in order. Getting the right documents in place isn't about assuming the worst; it's about giving your family clarity and control when decisions matter most. Here is a calm, organized checklist to work through together.

Step 1: Confirm the core legal documents exist

Start by finding out what already exists before creating anything new. Ask your parents (or check your own files) for these five documents:

• Last Will and Testament: Directs how assets are distributed and names an executor.
• Financial Power of Attorney: Names someone to manage bills, accounts, and property if incapacitated.
• Healthcare Power of Attorney: Names a healthcare agent to make medical decisions when someone cannot speak for themselves.
• Living Will / Advance Directive: Documents wishes regarding life-sustaining treatment.
• Revocable Living Trust (if applicable): May help avoid the Illinois probate process for certain assets.

Step 2: Review beneficiary designations

A will does not control everything. Retirement accounts, life insurance policies, and payable-on-death bank accounts pass directly to whoever is named as beneficiary — regardless of what the will says. Review these together:

• 401(k), 403(b), and IRA beneficiary forms
• Life insurance policy beneficiaries
• Payable-on-death (POD) or transfer-on-death (TOD) designations on bank and brokerage accounts
• Pension survivor benefit elections

Step 3: Locate and organize key paperwork

Create a single, secure folder (physical or digital) containing copies of:

Step 4: Understand Illinois probate and trusts

In Illinois, estates that go through probate become part of the public record and can take months to settle. A properly funded revocable living trust can help some families avoid probate court entirely, though it requires more upfront setup than a basic will. An elder law or estate planning attorney can help determine which structure fits your family's situation and asset mix.

Step 5: Revisit the plan regularly

Estate plans are not "set it and forget it." Revisit documents after major life events — a death, divorce, remarriage, move, or significant change in assets — and review them at least every three to five years.

Will or trust: which one does your parent need?

A will says who gets what and who is in charge of carrying it out. It generally has to go through probate, a court process that validates the will and oversees the distribution. A revocable living trust is a document that holds assets during life and passes them on after death, often without probate. Neither is right for everyone.

A will may be enough for a simple situation. A trust can make sense for people with real estate in more than one state, privacy concerns, or a family that may fight. In Illinois, probate is often manageable, and smaller estates may qualify for a simplified process with a small estate affidavit. As of August 15, 2025, that affidavit can be used for estates up to $150,000, raised from the previous $100,000, and vehicles no longer count toward that limit. The affidavit cannot be used if the estate includes real property. Limits change, so confirm the current rule with an attorney. Our interview on probate in Cook County is worth reading before you decide.

A trust only works if the assets are actually titled in it. A trust that was signed but never funded does very little. If your parent has one, ask the attorney which accounts and property are in it.

Beneficiary forms beat the will

Retirement accounts, life insurance, annuities, and many bank accounts pass to whoever is named on the beneficiary form, no matter what the will says. A parent who updated their will after a divorce but never changed the form on a 401(k) can leave money to an ex-spouse. Pull each beneficiary form and check:

• Who is the primary beneficiary, and who is the backup?
• Is anyone named who has died?
• Is a minor or a person with a disability named? This can cause problems and calls for advice from an attorney.
• Does the form match what your parent wants today?

Illinois rules worth knowing

A few Illinois features come up often in plans for older adults:

• Transfer on death instrument for real property. Illinois lets an owner sign and record a transfer on death instrument that names who receives the property after death and skips probate for it. A 2022 amendment broadened the law beyond residential property to real property generally. It has to be signed and recorded before death to work, and it needs care. Talk to an attorney before signing one.
• Estate tax. Illinois has its own estate tax with a threshold lower than the federal one. Most families are under it, but a parent with a large estate should ask. The Illinois exclusion is $4 million per person as of 2026. It is not indexed to inflation and it is not portable between spouses, so a couple has to plan to use both exclusions. Confirm the current amount, since it can change.
• Digital assets. Illinois has a law that governs how a fiduciary can get into online accounts. Leave a list of accounts and instructions, and check each company's own rules.
• Health care decisions. A separate health care power of attorney, not the will, is the document doctors look for. See our power of attorney guide.

The non-legal list your family will thank you for

Most of the stress after a death is about finding things. Sit down with your parent and put these in one place:

• Where the original will, trust, and powers of attorney are kept
• The name and phone number of their attorney and accountant
• A list of bank, retirement, and insurance accounts, with contact information
• Where the deed, car title, and safe deposit box key are
• Passwords or a password manager plan, and what they want done with email and social media accounts
• Funeral and burial wishes, and any prepaid plan
• Who should be called first

Store copies where the agent or executor can reach them, and make sure that person knows where to look.

Long-term care belongs in the plan

Many families plan for death and forget about the years before it. If your parent might need nursing home or memory care, the plan needs to cover how it will be paid for. Medicaid looks back five years at gifts, so giving away assets to "protect" them can backfire. Read our Medicaid look-back rules article and our Medicare vs. Medicaid guide before moving money or retitling anything.

Laws, dollar limits, and forms change. Have a licensed Illinois attorney review any plan. This is general information, not legal or tax advice.

Frequently Asked Questions

Finding help in the Northwest suburbs

If your family does not yet have these documents in place, an elder law or estate planning attorney can guide you through drafting and properly executing them under Illinois law.

Related guides

Estate planning overlaps with a few other decisions families face at this stage. These related guides walk through them in more detail:

Next steps

Pick one document from the checklist above and start there this week. Estate planning feels less overwhelming when it's broken into small, steady steps rather than tackled all at once.