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Recent Blog Posts
Vacation Properties and Estate Planning Options
Many families invest in vacation properties—a mountain cabin or ocean cottage—as places in which to escape and enjoy quality time together. Often, a family owns a vacation property for years—a home enjoyed while watching their children grow. Years later, the property becomes a place where the family's grown-children bring their own children.
Yet where does a vacation home fit in when it comes to estate planning, and what options do owners have to ensure a property is protected?
Cabin Trust
Property owners have the option to create a "cabin trust." A cabin trust is a revocable trust formed upon a property owner's death. An owner can choose to add a certain amount of money, along with the property, specifically designated for any costs incurred for the upkeep of the property. Additionally, the trust should have instructions regarding what should happen to the property once those funds are depleted, and when and if the property can or should be sold. A cabin trust can also stipulate who is allowed to use the property and when the property may be utilized. A beneficiary's right to use the property pending death can also be added as an additional stipulation.
Solid Estate Planning Can Protect Elderly from Fraud
One of the most targeted populations for scams is the elderly. Most victims are too ashamed or embarrassed to admit they have been swindled out of money, so exact numbers of victims are difficult to determine. However, studies have shown that elderly Americans are being conned out of $3 billion every year.
There are several types of ways the elderly are preyed upon—either by fraud committed by strangers or fraud committed by their own family or close associates.
Common stranger scams which are being used to gain access to elderly victims' money include the following:
- Grandparent Scam: An elderly person will receive a phone call from someone who poses as one of their grandchildren, claiming to be out of town and in a serious situation, and needs money wired to them. Scenarios that are used include a grandchild's car broken down, required medical attention, or he or she is in jail.
Title of Property and Estate Planning
When a person is purchasing a home, it will need to be decided how he or she wants to hold title of the property at the closing. There are several options from which homeowners can choose; however, it is important to understand that any chosen option may affect what happens to that property in the event of the owner's death.
Each of the choices have both positive and negative aspects. The following provides a general overview of each option, but it is always beneficial to discuss the options with a qualified estate planning attorney prior to making any legal decision.
Sole Ownership
Sole ownership, also referred to as ownership in severalty, is a common choice for people who are single or wish to hole a property in their name only. If a person who is married purchases a property and chooses this option, his or her spouse will often sign a quitclaim deed waiving any rights of ownership to the property.
Establishing Trust Funds for Special Needs Children in Illinois
Special needs children often require expensive care and treatment, and parents may worry about who will care for their children in the event of an untimely death. Parents may even seek counsel from estate planning attorneys to determine their options and gain information regarding trusts for their children with special needs.
Special Needs Trusts — The Basics
Special needs trusts are established so that parents with special needs children can put money aside to be used for a child's care at a later date. Any funds in the trust are protected and will not impact the amount of money a disabled child or person receives from other sources such social security. Even though there may be thousands of dollars in a trust fund, the individual will still retain all rights to Medicaid for health insurance benefits.
New Illinois Bill Addresses Digital Assets in Estate Planning
A new bill has been introduced to the Illinois General Assembly that addresses what should be done with personal online accounts when a person passes away.
A deceased person's social media accounts, such as Facebook, Twitter, email, as well as other online accounts, would all be considered physical assets and become part of a person's estate.
Senate Bill 1376 would allow the court to appoint a trustee who would then have access to the accounts in order to help settle a person's affairs. The bill currently has bipartisan support among Illinois lawmakers; however, there is opposition to the bill coming from tech companies who claim that the bill raises privacy issues.
Nursing Homes Using Guardianship over Residents for Bill Collection
A recent report in The New York Times should serve to reinforce just how crucial it is for people to have estate planning documents in place while they are still healthy and able to make decisions for themselves, including a health care power of attorney and a financial power of attorney.
According to the report, several nursing homes are using the legal tactic of seeking guardianship over residents in an effort to gain control of the residents' finances, essentially using the guardianship petition as a method of bill collection.
Although laws do allow for nursing homes to file for guardianship in cases where a resident is incapacitated and is either being taken advantage of financially by other relatives, or where there are no relatives or anyone else appointed to protect the person's interest, the report cites case after case where nursing homes filed petitions for guardianship, but with no reason—the facility was trying to gain control of a resident's money.
Estate Planning Wishes: Have You Had "The Talk" with Your Parents?
Families may find it uncomfortable discussing estate planning wishes with their loved ones. No one likes to consider the day when his or her parents will no longer be around. However, not discussing one's estate planning can have serious consequences. It is an all-too-common scenario when a person passes away—or becomes seriously incapacitated—without ever making important legal decisions.
If your elderly parents have not addressed these decisions, it is important to sit down with them and make plans to consult with an estate planning attorney to ensure their wishes are carried out. This is not always easy since parents often feel that these matters are private ones, even with their own children. They may also not want to make these plans because it reminds them of their own mortality. Yet keeping these factors in mind when approaching parents can help make the conversation easier.
Estate Planning and Prenuptial Agreements
When people hear the words prenuptial agreement, they usually think of beginnings—the beginning of a new life together. Estate planning usually brings to mind then end—the end of life. However, these two phrases should really go hand-in-hand, especially when there is a family business involved.
It can be devastating to parents who have worked hard all of their lives to build up the family business to leave to their adult child, only to see half—or more—of that business lost to a child's spouse in a messy divorce.
A prenuptial agreement can be one of the strongest legal documents in estate planning for protecting a family business if a marriage ends in divorce. A prenuptial agreement is essentially a binding contract between spouses which clearly spells out how a marital estate will be divided in the event of divorce. An agreement can also detail what will happen to an estate in the event of a spouse's death.
Little Things Can Cause the Biggest Headaches in Estate Planning
Couples who have been married for a long time often fall into a routine regarding how the marital responsibilities are divided. This routine may also apply to financial responsibilities. One spouse may handle all of the investment responsibilities and the other may handle the household financial responsibilities such as monthly bill paying and checkbook balancing. Quite often, however, when one spouse dies unexpectedly and there is no written documentation and record-keeping, it can turn into a nightmare for the surviving spouse.
When a spouse passes, and he or she handled all investments, the surviving spouse may suddenly find him or herself unsure of what or where those investments, as well as other bank accounts, are located. He or she may also have issues gaining access to those accounts.
Illinois Estate Planning: Reasons Not to Procrastinate
Many of us are familiar with the Benjamin Franklin quote, "In this world nothing can be said to be certain, except death and taxes." Yet those two topics—death and taxes—are not ones people generally like to think about. This could be why more than half of us do not have even the most basic of estate planning documents in place. In fact, according to financial planners, there may be several reasons why people put off and delay planning for what truly is the inevitable.
Not Enough Time
Many people say they do not have the time for estate planning, claiming they are just too busy. However, legal advisors and financial planners stress that this is one area that should be a priority and everyone needs to make the time. It is important to figure out who should receive what items of your estate in order to avoid possible fighting among family members when you are gone.
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