630-665-2500
128D S. County Farm Road, Wheaton, IL 60187
Recent Blog Posts
Are You Ready to Retire?
Most of us work for the majority of our adult lives with the end goal of being able to enjoy a comfortable retirement. It seems that every so many years, the age most people retire at increases. It used to be the age of 65...then 68...then 70 years of age was the target. These days, the age of 72 is one that is brought up in many discussions about finally being able to retire. But no matter how much planning, saving, and investing you do, how do you really know when you are ready to finally stop working?
Financial planners say there are several factors that you should consider when making that determination. First, you should determine how much you will receive in Social Security benefits. The federal agency will provide you a report that shows how much income you have earned and how much your benefit will be at various ages. If you are married, then you will also want to determine what the maximum benefits for you and your spouse will be.
Medicare and Medicaid Differences and Planning for the Future
One of the most confusing decisions and choices that seniors need to make is about their health care insurance. People may have a hard time understanding the differences between Medicaid and Medicare and how those differences affect their future medical needs, including nursing home or rehabilitation facility placement.
Although both Medicaid and Medicare are federal health care programs, Medicaid is actually overseen by each individual state. Medicaid eligibility is geared more towards people who are low-income; however, Medicare qualification is for everyone, regardless of income.
To qualify for Medicare, a person must be 65 years or older, or a beneficiary of the Social Security Disability Insurance (SSDI) program for a minimum of two years. The program pays for physician visits, lab costs, outpatient care and supplies, prescription medicines, and hospital stays. The program will also pay for short-term nursing home stays (i.e. rehabilitative services) for stays up to 100 days. Hospice services are also covered by Medicare for those who have been given less than six months to live.
Pet Trusts in Estate Planning
Pet owners often consider their pets as members of the family. However, owners do not stop and think about what would happen to their beloved pet should something happen to them. Ensuring that your faithful companion is taken care of when you are gone is something that you can address in your estate plan.
A pet owner may choose to address his or her pet's care in a will. It is important to remember, however, that instructions left in a will cannot be carried out until the will has been filed in probate court and the executor of the estate has given permission to carry out those instructions. Moreover, one issue that could arise is a potential heir objecting to funds being spent on a pet and attempting to reject that funding.
Therefore, instead of only relying on a will, one of the best ways to protect your pet's future may be setting up a pet trust. Although some states do not recognize pet trusts, Illinois does.
Inheritance Taxes in Estate Planning
Many people take advantage of the tax savings that estate planning options give them. Utilizing different legal options, such as trusts, will often alleviate how much a person would have to pay to the IRS in taxes for those funds. However, one of the issues to consider is whether or not the plans you are establishing will place a tax burden on your beneficiaries when you pass.
The federal tax exemption statistically affects approximately 1 percent of the country's population. The current exemption is $5.43 million for individuals and $10.86 million for couples. Yet many people fail to consider if the state they live in has required estate tax. There are 16 states, including Illinois, which levy up to a 20 percent estate tax to beneficiaries.
Estate Planning for Twenty-Somethings
There is a great misconception that estate planning is only applicable to older individuals who are nearing retirement or are already retired. The reality is, however, that adults are never too young to put some sort of estate plan in place. Obviously, the more assets and property you acquire may make planning more complicated. Still, even twenty-somethings should have certain documents in place—at the very minimum.
Health Care Advance Directives and Health Care Powers of Attorney
Most young adults do not ever consider what would happen to them if they suddenly became sick or incapacitated. Moreover, they are unaware that no one—not their parents, siblings, or other family members—would be legally able to make medical or health care decisions should they be unable to make those decisions for themselves. Having an advance directive in place could avoid the possible fracture that often occurs in families when they cannot agree on the same course of medical care. This is exactly what happened in the case of Terri Schiavo, who was only 26-years-old when she collapsed and went into coma with irreversible brain damage. A 15 year legal battle between Terri's husband and her parents waged over the course of medical treatment Teri would have wanted.
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.
