Posted on March 27, 2025 in Trust Administration

A living trust (also called a "revocable living trust" or "declaration of trust") is a foundational estate planning document that enables people to manage their assets in the event of an incapacity or death. Simply put, a living trust efficiently distributes assets and avoids probate.

Illinois has its own estate tax, and the federal estate tax exemption is $13.99 million. An exemption is a specific amount of money or value that is excluded from taxation. In the context of estate taxes, an estate tax exemption allows a certain portion of an individual’s estate to pass tax-free before any tax on the estate applies. Call our Illinois estate planning attorney for more information about estate planning and how a living trust could help you.

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 Posted on March 13, 2025 in Asset Protection & Wealth Preservation

When crafting your estate planning, you should not only consider how you wish your assets to be distributed, but also the ideal way to do so to minimize the burden on your estate and beneficiaries. Many people believe that simply designating beneficiaries on their financial accounts, life insurance policies, and retirement plans is sufficient to transfer their assets smoothly to their heirs.

However, relying on naming beneficiary designations creates significant probate risks, including unintended consequences, probate complications, and a lack of asset protection. A properly structured living trust can provide a comprehensive estate planning solution to mitigate probate risks. An experienced Plainfield, IL estate planning attorney can advise you on your estate planning options, such as a living trust or other estate planning instruments.

Why Relying on Beneficiary Designations is a Mistake

Beneficiary designations are a valid estate planning tool; however, beneficiary designations contain significant legal risks.

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 Posted on January 28, 2025 in Asset Protection & Wealth Preservation

If you are new to estate planning, you might understandably think that it is all about wills and trusts. While wills and trusts are powerful and widely used ways to create your estate plan, there are other legal instruments that may be well suited to your needs.

One of these is called the Illinois transfer on death instrument, and it is a way to transfer real property upon your death. An experienced Illinois estate planning attorney can offer advice on whether you should consider a transfer of death instrument for your estate plan.

What Is a Transfer on Death Instrument?

A transfer of deed instrument (TODI)  is a revocable estate planning document that allows the owner of residential real estate to transfer the property upon their death while bypassing probate, the court process used to settle estates and determine if certain legal instruments such as wills are valid. With a TODI, the property owner selects one or more beneficiaries who will receive ownership interests in the property when the owner dies.

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 Posted on January 13, 2025 in Trust Administration

Guardianship is the traditional legal process used to appoint a guardian over someone a court determines is unable to handle their personal or financial affairs. Most people making their estate plan wish to put in place protections to avoid this process should they become incapacitated, given the lack of control and expense it can entail. The main way to do so is to create a living trust, which has several advantages over guardianships. An experienced Yorkville, IL estate planning attorney can help you set up a living trust.

What Is a Guardianship?

Guardianship is a legal mechanism to protect the financial and personal affairs of a person who is deemed by a court to be unable to make basic decisions or manage their finances. A guardian is legally assigned to make decisions about the incapacitated adult’s health care, finances, living arrangements, and more.  Often, guardianships are created to care for people with Alzheimer’s, mental illnesses, or developmental disabilities.

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 Posted on December 30, 2024 in Trust Administration

An Illinois Living Trust, as its name implies, is a trust that you create during your lifetime. Your beneficiaries benefit from the trust after your death. A revocable living trust can also protect you should you become mentally incapacitated.

There are many benefits to the versatile living trust: It can help avoid probate, you have full control over trust assets during your lifetime, it can be modified during your lifetime, and it is a private document that is not part of the public record. To ensure that your living trust legally fulfills your wishes and contains key living trust provisions, consult with an experienced Yorkville, IL estate planning attorney.

Beneficiaries, Settlor, and Trustee 

The living trust should list who will be the beneficiaries, settlor, and trustee of the trust. This section is necessary to fulfill the basic purpose of the trust and plan for its administration.

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 Posted on November 26, 2024 in Asset Protection & Wealth Preservation

As a business owner, you are busy wearing many hats, from running the day-to-day operations to managing employees to growing the business. That is why you might not have taken the time to consider putting in place an estate plan to protect your assets. However, planning ahead as a business owner can safeguard and strengthen your business. If you want to know more about implementing an estate plan and asset protection strategy as a business owner, a qualified estate planning attorney can provide legal advice on how to best protect your assets.

Why Do Small Businesses Need Asset Protection?

The purpose of putting in place an estate plan is to ensure that your business assets are protected from any eventuality and that all the hard work, dedication, and money that you invested into building your business does not go to waste. A comprehensive estate plan can guarantee that someone you trust takes over your business if you are incapacitated and unable to do so. It can also protect your assets in the event you face:

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 Posted on November 14, 2024 in Incapacity Planning

One of the best ways to protect your and your family’s future is to let your family members know in advance your wishes regarding end-of-life decisions. You can also put in place legal documents that provide authority to other family members to deal with unexpected health issues should they arise.

In Illinois, an Advanced Health directive and a Statutory Power of Attorney for Healthcare can be used to empower another to make health decisions on your behalf in the event you are incapacitated. Although a Statutory Power of Attorney is a type of healthcare directive, there are important differences between the two that your attorney can advise you on as you think about setting up a plan for dealing with health challenges.

What is an Advanced Healthcare Directive?

An advanced healthcare directive provides medical instructions on what to do in the event you are unable to make your own medical decisions. Some types of advanced healthcare directives include:

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 Posted on October 08, 2024 in Estate Tax Planning

Illinois is one of the only twelve states (and D.C.) that have passed a state estate tax, which will be assessed to estates worth over $4 million (in contrast to the Federal estate tax exemption of $13.61 million). When drafting your Illinois estate plan, an attorney well-versed in Illinois estate planning can implement strategies to minimize the state's estate tax burden.

What Type of Property is Included in an Illinois Estate?

Illinois' estate tax applies to all Illinois residents and to non-residents who own real property in the state. It includes a comprehensive list of properties such as bank and retirement accounts, real estate, personal property, business interests, investments, life insurance policies, and more. The good news is that both spouses are entitled to the $4 million exclusion.

Estate Planning Techniques to Minimize the Illinois Estate Tax

To mitigate an estate's tax liability, you will have to reduce its monetary value. There are several ways to do this:

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 Posted on September 30, 2024 in Trust Administration

Choosing a trustee to manage your trust and its assets is a crucial step in estate planning. The right trustee will administer the trust appropriately, be responsible when investing the assets, and distribute them to the beneficiaries. He or she will also make smart financial decisions on behalf of the beneficiaries, keep accurate records, and make sure any taxes are filed.

When making this important decision, the grantor — the person who creates the will — should consider appointing his or her adult child as the trustee where appropriate. In the article below we will discuss why adult children can be great choices for trustees and how to contact an Illinois estate planning attorney for help with creating and managing trusts.

Why Should I Consider Appointing My Adult Child as Trustee?

Every family is different. For some, appointing an adult child as a trustee may not be possible or prudent. For others, however, choosing an adult child to manage a trust can have several benefits:

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 Posted on September 11, 2024 in Estate Planning

Estate planning is an important part of managing your finances. It allows you to protect your assets, ensure the continuity of your estate, and provide for your heirs after you pass away. Healthcare professionals, in particular, face certain unique challenges that can be addressed through estate planning.

However, estate planning is a complex process that requires a vast knowledge of the law and careful attention to detail. An Illinois estate planning attorney is, therefore, a key resource for healthcare professionals who want to prepare their financial affairs for after their passing.

Here are four things healthcare workers should know about estate planning.

Estate Planning Can Help You Plan for Disability

Perhaps better than anyone, healthcare professionals know how certain disabilities can affect the capacity to make decisions. Comas, cognitive decline, and other conditions can incapacitate a person and interfere with his or her ability to communicate.

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