Numerous expenses, including, but not limited to those payments listed above
Court files are matters of public record, open for anyone to see, i.e., family, friends, neighbors, enemies, debt collectors, and salespeople.
One does not need to retain an attorney in order to contest a Probate estate. We find that approximately one out of every ten estates are contested.
A Will is not relevant in the event that you are incapacitated. In lieu thereof, we may go to Probate Court to have someone named as guardian. In Illinois, this is known as a Guardian for Disabled Person. This is an expensive court proceeding which is a matter of public record. The Guardian takes control of your assets and payment of your debts and may also require the Probate of your estate upon your passing away.
May need approval for sale of assets and/or payment of debts thereby delaying sale of property or distribution of same. Controlled by attorney and judge.
Some people transfer property in an attempt to qualify for Medicaid. There are numerous problems regarding this, particularly involving timing and amounts. Giftees may end up responsible for YOUR medical bills!
Non-taxable gifts limited to $15,000 per person per year. Transferring ownership into joint tenancy may be a gift subject to gift taxes. Gift tax rates begin at 40%
There are also income tax implications in the gifting of property, whether the property is sold during your lifetime, or after you pass away. If you receive property by a gift during your lifetime, you will not receive the stepped-up basis of the date of death value upon the death of the party who originally owned the property.
Creates Trust
Manages Trust
Manages Trust
Receive Trust Property when you die
Practically speaking, most people (especially those with smaller estates) act as their own trustees and have their adult children as successor trustees.
Abstract of Trust – This three or four-page document summarizes the trust and is used for the financial institutions as needed when performing the re-titling.
Trust – This is the main working document of the estate plan. This is where you will indicate who will receive your assets, how they will receive them and who will administer the trust when you are no longer able to as well as many other instructions.
Declaration in Compliance with the Illinois Living Will Act (“Living Will”) – This standard document is in accordance with the laws of the State of Illinois and, along with the Health Care Power of Attorney, directs health care officials as to how you would like your life prolonged if you are unable to speak for yourself at any time.
Health Care Power of Attorney – Together with the “Living Will,” this document appoints an agent to carry out the instructions you leave regarding how you want health care providers to proceed in various cases when you are unable to speak for yourself.
Property Power of Attorney – This document appoints an agent to handle your financial affairs should you be unable to do so during your lifetime. Generally you will appoint the same person that you have designated as the Successor Trustee of your Trust.
The exceptions are tax-deferred savings, like IRAs and 401(k)s, retirement accounts and retirement/pension plans – you may want your spouse, if applicable, to be primary beneficiary of these so he/she can have the option of rolling these proceeds over into his/her own IRA and defer taxes until later. If the Living Trust is the beneficiary, the proceeds may be taxed sooner. Everyone’s situation is different; therefore, this decision requires careful thought and counsel with a tax professional.
1. You gift cash to Trust.
2. Trustee notifies Beneficiary of gift.
3. Beneficiaries refuse gift.
4. Trustee uses gift to pay insurance premium. Trust is owner and usually beneficiary of policy.
5. When you die, Trustee distributes proceeds tax free to beneficiaries according to your Trust instructions.
A Life Insurance Trust keeps your insurance policies from being included in your taxable estate and is the least expensive way to pay Estate taxes, if applicable.
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