2025 Legal and Financial Changes Affecting Illinois Estate Plans

As 2025 draws to a close, several legal and financial changes have taken effect this year that could significantly impact how DuPage County and Naperville families protect and transfer their assets. The most notable update—Illinois raising the Small Estate Affidavit limit to $150,000 in August—means more families can now avoid the time and expense of probate. But this is just one of several legal and financial shifts affecting Chicagoland families heading into 2026. Here’s what changed in 2025 and why a year-end estate planning review could save your family thousands of dollars and months of court proceedings.

Illinois Small Estate Affidavit Expanded to $150,000: What It Means for Your Family

As of August 15, 2025, Illinois expanded eligibility for the Small Estate Affidavit to estates valued up to $150,000 in personal property—up from the previous $100,000 cap—and the law now excludes motor vehicles from this calculation. Additionally, the 2025 law allows title transfers for all registered motor vehicles regardless of their value, even if the total vehicle value exceeds $150,000.

For context, this means that if your loved one passes away with $140,000 in bank accounts, investment accounts, and personal property, their family could potentially settle the estate in weeks instead of months—and save thousands in court costs and attorney fees.

This expansion allows many more Illinois families to:

• Avoid opening a full probate estate
• Transfer property more quickly
• Save on attorney and court costs
• Reduce stress during an already difficult time

However, proper planning remains essential. If your estate includes real property or if family members disagree about asset distribution, you’ll still need to go through formal probate. The affidavit works only for straightforward situations, and it must be used carefully to avoid legal complications.

Not sure if your estate would qualify for the Small Estate Affidavit? We can review your situation and help structure your assets to take advantage of this streamlined process. Contact us for a free consultation →

How 2025 Retirement Account Rules Affect Illinois Estate Plans

Each year, contribution limits for retirement accounts shift, and rules for inherited IRAs continue to evolve under federal tax law. These changes matter because retirement accounts often make up a large portion of an estate—sometimes the largest single asset a family inherits.

For 2025, Naperville-area families should pay attention to:

• Updated IRA and 401(k) contribution limits
• Whether their beneficiaries are properly structured under the SECURE Act
• Whether minors or disabled beneficiaries are protected through trusts
• Whether inherited IRA withdrawal rules (the 10-year rule) will apply to their heirs

For example, if you’ve named your adult children as IRA beneficiaries, they may be required to withdraw all funds within 10 years under current law, potentially creating a significant tax burden. A properly structured trust could protect them from this outcome while maintaining more control over distributions.

If your retirement accounts have not been coordinated with your will or trust, the start of 2026 is an ideal time to correct that oversight.

Rising DuPage County Property Taxes and Your Estate Planning Strategy

Many Illinois homeowners have seen increased property taxes in 2025, and DuPage County is no exception. These rising costs may impact several aspects of your estate plan:

• Liquidity for a surviving spouse: Higher ongoing costs mean your spouse may need more liquid assets to maintain the home
• Trust funding: Whether your trust still provides adequate cash reserves
• Transfer methods: Whether your home should pass by Transfer on Death Instrument (TODI), trust, or probate
• Long-term affordability: Whether aging parents can realistically afford to stay in the family home

Real estate is often a family’s most valuable asset and the most complicated to transfer. Rising property taxes may prompt a review of ownership structure and planning strategies to ensure your home can actually be maintained by the people who inherit it.

For Chicagoland families, the combination of high property values and increasing tax assessments makes this planning particularly important.

Digital Asset Planning: New Requirements for Illinois Estates in 2025

Each year, more financial, personal, and business records shift online. Digital assets now represent a significant portion of many estates and include:

• Online banking and investment accounts
• Photo storage accounts (Google Photos, iCloud, Dropbox)
• Cryptocurrency and digital wallets
• Social media accounts (Facebook, Instagram, LinkedIn)
• Email accounts
• Business software and subscriptions
• Domain names and websites
• Digital media libraries (music, books, movies)

As the law continues to evolve in this area, it’s increasingly important to make sure your estate plan clearly authorizes your executor or trustee to access, manage, and distribute these digital assets. Illinois law now recognizes the need for estate planning documents to specifically address access to these assets.

If your current estate planning documents were created before digital asset statutes were enacted—or if they were written more than five years ago—they may need to be updated to include specific digital asset provisions.

What These Changes Mean for You

You don’t need to overhaul your estate plan every year. But 2025 has brought enough meaningful shifts that it’s wise to review these essentials:

• Are your documents still current? Legal changes may have created new opportunities or closed old loopholes
• Are the right people named in the right roles? Executors, trustees, guardians, and agents should still be willing and able to serve
• Are your assets set up to avoid unnecessary probate? The expanded Small Estate Affidavit may change your planning needs
• Are your beneficiary designations current? Retirement accounts, life insurance, and transfer-on-death accounts override your will
• Do your digital assets have clear instructions? Your executor needs explicit authority to access online accounts
• Do your parents need to update their plan too? Many of these changes affect older adults with established estates

A short review now can prevent complicated and expensive problems later—and may uncover opportunities you didn’t know existed.

Take Action: Your Year-End Estate Planning Checklist

Before 2026 begins, take these essential steps to protect your family:

☐ Locate your current estate planning documents (will, trust, powers of attorney, health care directives)

☐ Review beneficiary designations on all retirement accounts, life insurance policies, and payable-on-death accounts

☐ Create a digital asset inventory with account information and access instructions stored securely

☐ Consider whether the Small Estate Affidavit expansion changes your planning needs or creates new opportunities

☐ Verify your executors, trustees, and agents are still willing and able to serve in their roles

☐ Review your property tax situation and whether your estate provides adequate liquidity for heirs

☐ Schedule a consultation with an Illinois estate planning attorney to discuss how 2025 changes affect your specific situation

Finish 2025 and Start 2026 with Confidence

Don’t let 2025’s legal changes leave your family vulnerable or miss opportunities to simplify asset transfers. Long Law Group offers year-end estate planning reviews for Naperville, DuPage County, and Chicagoland families.

In just 30 minutes, we’ll help you:

✓ Understand how the $150,000 Small Estate Affidavit expansion affects your situation
✓ Review your beneficiary designations for tax efficiency and proper structure
✓ Ensure your digital assets are properly addressed in your documents
✓ Identify any gaps that could trigger unnecessary probate or tax consequences
✓ Determine whether your plan still protects your family the way you intended

Contact us at contact@jlonglaw.com or 312-344-3644 to discuss your particular case.