630-665-2500
128D S. County Farm Road, Wheaton, IL 60187
Recent Blog Posts
DIY Estate Planning: Dangerous Territory
Although a recent survey indicates that as many as 1/3 of Americans are using online estate planning tools or generic forms they have purchased, creating your own estate planning documents is tricky. Working with a lawyer is the only way to make sure that you have articulated your desires properly.
Not Doing Enough
One of the dangers in using a standard online approach to estate planning is that you simply won't create the kind of comprehensive plan you'll need if something happens to you. If you have any kind of unique aspect to your situation, like children with special needs, you're unlikely to find that the "one size fits all" approach to estate planning works for you. These online services tend to present the "bare bones" for your needs, which could mean missing out on critical documents or needs that you are not aware of until it's too late.
Doing Too Much
Go on Your Own Terms
When planning for the future, establishing a will is an important part of that. By setting a will in place, you can be sure to provide for your loved ones after you are gone in a way that you see fit. But, a will is not just for the distribution of your possessions after you are gone; it can also be used to outline your wishes for yourself. A "living will" may be put in place regarding your wishes for your own medical treatment at a time when you are unable to speak for yourself.
The living will was first proposed by an Illinois attorney, Luis Kutner, in a law journal in 1969. Kutner drew from existing estate law, by which an individual can control property affairs after death (i.e., when no longer available to speak for themselves) and devised a way for an individual to express his health care desires when he is no longer able to express current health care wishes. Because this form of "will" was to be used while an individual was still alive (but no longer able to make decisions) it was dubbed the "living will."
New Portability Rules Affect Estate Planning
President Obama signed the American Tax Relief Act (ATRA) of 2012 into law at the beginning of this year, causing many revisions to estate planning code that will affect retiring Boomers in large numbers. According to Forbes, "one of the key provisions of ATRA is to make permanent to so-called portability of the applicable exclusions amount between spouses." The rules of portability greatly affect estate planning, according to Forbes, and should be considered with an estate-planning attorney. So what is portability? What does it do?
According to Forbes, the new laws regarding portability allow for the transfer of one spouse's unused estate tax application exclusion to the other upon the death of the first spouse. This means that the surviving spouse can use this tax application exclusion for gift or estate tax purposes, rather than it going to waste if it hadn't been used before the death of his or her spouse. "Any applicable exclusion amount of the first spouse to die that is used to reduce the estate tax liability of that spouse's estate tax reduced the amount of the excess applicable exclusions amount that carries over to the surviving spouse in the form of ‘deceased spousal unused exclusion amount,' or DSUE amount," reports Forbes.
Estate Planning: Do You Want To Leave a Digital Fingerprint?
Most everyone is familiar with the benefits of traditional estate planning, from articulating your desires in a living will to generating trusts or wills that explain what happens to your assets after you pass away. As people are increasingly active online, it's necessary to think about what might happen to your digital assets after you pass away. Everything from the photos on your Facebook account to the contents of your email inbox is worth considering. Failing to think about what should happen to your digital accounts and data after you pass away can lead to additional emotional trauma for family members in the wake of your death. Companies involved with digital data are increasingly cognizant of the role that stored information can play in family disputes or dissemination of information, which is why Google has created Inactive Account Manager. With Google's new tool, which just came out this spring, users can determine what happens to their data on their own terms. Using this program allows individuals to designate what will happen to any information or data connected with Google accounts- including everything from email to videos posted on YouTube. Users can name other individuals who will be notified about account deactivation, which you can set to occur anywhere from 3-12 months after the company identifies you as "inactive". Google will reach out one month before they official terminate your accounts, in the event that you're traveling or otherwise around. Beneficiaries, if you name them, will receive digital links to download any information that you have previously chosen to share. This way, digital memories can be kept alive if you wish, or you can have all of the information deleted. Other companies also offer what's known as online safe deposit boxes, where you can store information about account sign-ins and passwords, allowing beneficiaries to get information if they want or need it. Estate planning now reaches right into your computer screen. If you have questions about developing estate plans, contact our office today for a consultation.Image courtesy of Jomphong at freedigitalphotos.net
Wills in Illinois
Wills are often not thought of until people reach a very old age, but it is very important for even young people to have them. Not only are they used to distribute property and to name a legal guardian for children, they can also be used as directions for what to do if you are no longer able to speak for yourself in the hospital or after death.
Although states vary, in Illinois, if someone dies without creating a will, his or her property will be distributed according to state "intestacy" laws. These laws state that the property of the deceased will go to the closest relatives, beginning with a spouse and children, then moving to grandchildren or parents if you have no spouse or children.
If there is no relative of the deceased to claim the property, it will go to the state. This is only after all relative have been exhausted, however, beginning with siblings, grandparents, uncles, cousins and even to spouse's relatives.
Whole Life vs. Term Life Insurance
Life insurance policies come in several different types. The two main types of policies are term life and whole life. Within each are their own individual subcategories that are designed to suit differing individuals.
There are no definitive rules when deciding which type of policy is going to be the best for you. Although term life policies can appear cheaper and a more financially viable option to begin with this is not always the case. In the long run, researching and understanding the main differences between the two types of insurance can help you to make the most informed decision.
The length of the policy coverage is the main differentiating factor; whole life insurance covers you for your entire life whereas the duration of the coverage of term life depends on the particular terms of the policy. Term life will provide coverage for as long as you pay your premiums, there are term policies that have a fixed term such as 10 years, 20 years etc... Some insurance companies will also allow you to convert some or your entire insured sum into a whole life policy after a period of time or at the end of your term policy.
DOMA and Estate Tax Planning
On Wednesday June 26th, the United States Supreme Court ruled five to four that the Defense of Marriage Act is unconstitutional. The definition of marriage will now change to reflect the diversity of human life. There will also be far reaching affects concerning married couples when they plan their estates.
The first change concerns the tax break afforded to married couples which was the issue in the United States v. Windsor case. This is defined as the marital deduction which lets spouses that are US citizens transfer assets to each other without paying gift taxes or other federal taxes. But that was not the case for same sex couples because they could not be married under federal law. That is because under section three of DOMA, marriage is defined as the "legal union between one man and one woman" while a spouse is defined as a "person of the opposite sex who is a husband or a wife".
Illinois Tax Exemption Increases in 2013
According to a report at Mondaq.com, there have been several changes that have been made this year to Illinois legislation when it comes to matters of estate planning. These changes, if not followed can find Illinois residents paying out more than they need to in taxes. These changes were implemented January 1, 2013.
There a a few key changes that make the amounts at the state and federal level differ. The Illinois estate and generation skipping tax exemption amount is now $4 million while the federal amount is $5.25 million. The federal estate tax exemption has been adjusted to deal with inflation and has increased over $200,000 since 2011. The Illinois tax exemption has not been adjusted to deal with inflation at all.
The estate tax rate has been capped both on the state and federal levels. The maximum with the state is 16% while the federal maximum is 40%. These are only a few of the changes. Some of these changes will affect some people and not others, so consult with your DuPage County estate planning lawyer if you have questions about how it will affect you.
Protecting Your Identity Even After Death
The Internet puts knowledge at the tips of your fingers. But unfortunately it also allows thieves to gain access to Social Security numbers and other private information. But in recent years, this practice does not only target the living, but the deceased have become the preferred victims.
The thieves gain access to this information from obituary notices and other files online. Some reports confirmed that for as little as ten dollars, anyone can buy the Social Security number of a departed person. With that info, they can apply for loans, collect tax refunds, open up credit cards, and other things which require a Social Security number. Current research suggests that each year 2.5 million deceased individuals have their identities stolen.
There are tips to protect your family as part of your estate plan, which can be provided to the executor of your will. The first step is to limit the information which is included on the obituary. Without date of birth, middle name, address, or other information, it will considerably harder to steal the deceased's financial information.
Estate Sales
Warning: stripos(): Offset not contained in string in /home/ocvaws/public_html/system-joomla-shared-core/components/com_easyblog/easyblog.php on line 6
Contact Our Firm
The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.
I have read and understand the Disclaimer and Privacy Policy.
