Now that you are dead (sorry that happens to all of us), of course you personally cannot transfer your assets to your spouse, children or anyone else.  

How are your assets transferred from your name?  If you do not have a Last Will and Testament or other documentation, the State of Illinois has a law that determines who receives your assets and who administers (that is, transfers) your assets.

This person is called the administrator.  The administrator must provide the Probate Court with his personal promise that he will not lie, cheat nor steal from your estate as well as comply with the law.  However, people who are not trustworthy often do not keep their promises.  The law of Illinois also requires that the administrator provide the Probate Court with a Surety Bond (sometimes called a Performance Bond).  If the administrator mishandles the administration of your estate, the company that issues the surety bond would step in and fix the problem.

Just like any other insurance, a surety bond comes with a premium which is paid annually during the administration of the estate.  The surety bond must be 150% of the value of the personal property of the estate.  

For example, if you have $500,000 in stocks, bonds and bank accounts, then the amount of the surety bond would be $750,000.  As a rule of thumb, we can project that the premium would be about 1.5% of the amount of the surety bond.  In this example, the premium would be $11,250.00.  A significant amount of money.

One of the many benefits of having a Last Will and Testament is that you can name a person who you trust to administer your estate and, importantly, waive the requirement of having a surety.  This will save the estate the cost of the surety bond and put more money in the pockets of those you want to inherit from you.

Typically, the cost of a surety bond significantly exceeds the legal fees to prepare a Last Will and Testament – all-in-all saving you and your estate money.