DGAA bLAWg

Are Holiday Gifts Subject to Federal Gift Tax?

Web Admin - Thursday, December 21, 2017
Barrington estate planning and tax lawyerThe holiday season is a time of giving, but as you celebrate this time with your family and friends, you may need to be aware of a certain omnipresent aspect of American life: taxes. While it will likely only apply to people who earn a high income or have large financial assets, it is still a good idea to understand the Federal gift tax and the impact it may have on the gifts you give and your estate.

What Is the Gift Tax?

When a person transfers property to someone else without receiving something of equal value in return, this is considered a gift by the Internal Revenue Service (IRS), and it may be subject to gift taxes. The person who gives the gift to someone else (known as the donor) is responsible for filing tax forms for the gift and paying the gift tax.

Gift Tax Exclusions

Certain types of gifts are excluded from taxes, including gifts given to one’s spouse, gifts given to a political organization, and tuition or medical expenses paid on someone’s behalf. For other gifts, an annual exclusion threshold applies. That threshold is $14,000 for 2017, and the threshold for 2018 will be $15,000.

The annual exclusion applies to gifts given to an individual person, so if a donor gives multiple people gifts of less than $14,000 each, they will not owe any gift taxes. For spouses, the exclusion is doubled, so a married couple can give a gift of up to $28,000 without owing gift taxes.

In addition to the annual exclusion, everyone is entitled to a lifetime exemption known as the basic tax exemption. For people who die in 2017, that exemption is $5,490,000, and in 2018, the exemption will increase to $5,600,000. The taxable amount of gifts greater than the annual gift tax exclusion threshold can be applied toward this lifetime exemption, and taxes will not be owed on these gifts. However, any amount of the basic exemption used during one’s lifetime will be deducted from the amount of their estate that is exempt from estate taxes upon their death.

Contact a Schaumburg Estate Planning Attorney

Determining how gift taxes will affect your finances and your estate can be a complex undertaking. If you want to make sure you are protecting yourself and providing for your family’s financial security, the skilled attorneys at Drost, Gilbert, Andrew & Apicella, LLC can work with you to ensure you have met your legal requirements and have the financial resources in place that your family needs. Contact our Rolling Meadows estate planning attorneys today at 847-934-6000 to schedule a personalized consultation.

About the Author: Attorney Jay Andrew is a founding partner of Drost, Gilbert, Andrew & Apicella, LLC. He is a graduate of the University of Dayton School of Law and has been practicing in estate planning, probate, trust administration, real estate law, residential/ commercial leasing, contracts, and civil litigation. Since 2005, Jay has been a Chair of the Mock Trial Committee for the Annual Northwest Suburban Bar Association High School Mock Trial Invitation which serves over 240 local Illinois students each year.



Source:
https://www.irs.gov/businesses/small-businesses-self-employed/estate-and-gift-taxes

Revised Uniform Fiduciary Access to Digital Assets Act: Illinois Provides Guidance on What Happens to Your Digital Assets After Death

Web Admin - Thursday, September 15, 2016
Barrington IL estate planning lawyersDigital assets, such as email accounts, online banking accounts, phone and computer applications, photos stored in cloud accounts, and digital music have been a legal thorn in the sides of families and estate executors. Many loved ones simply overlooked or failed to consider the importance of granting access to these digital accounts in their estate plans, and their executors were left with no form of legal recourse when it came to gaining that access. Others permitted access but failed to keep their information updated, or had their accounts closed upon death. In these instances, too, executors were denied access.

Sadly, this lack of access created numerous problems for estate executors. Final bills went unpaid. Precious family photos were lost. Wishes could not be fulfilled. Illinois has finally stepped in and provide a provision for estate executors. They may now access digital assets, with or without explicit permission, giving them the ability to close out the estate in a timely and efficient manner. However, this new law also has its drawbacks for the deceased. Understand what the Revised Uniform Fiduciary Access to Digital Assets Act means for your estate, and learn what precautions you may want to take.

Why an Executor May Need Access to Your Digital Assets

The executor of your estate – generally a person who is close to you (an adult child, a spouse, a parent, etc.) – is tasked with wrapping up your affairs upon your death. They take care of your final expenses, notify any potential beneficiaries, obtain death certificates, sell any property that is not going to be distributed, and close up all other matters of your estate. At first glance, access to your digital accounts may not seem necessary for completing these tasks, but there may be some “loose ends” that they may need to tie up online. For example, your executor may need to:

- Pay your bills online,

- Obtain phone numbers and/or addresses stored in online accounts,

- Make administrative changes to a blog or social media account,

- Terminate subscriptions that may continue to incur costs,

- Pay or manage insurance premiums, and

- Access online storage accounts to print or transfer important photographs.

How the Act Ensures Executors Have Access to Your Accounts

There are two ways that you can provide easy access to your online digital accounts. You can either use the online tool, which gives you a way to disclose (or not disclose) important account information, or you can provide instructions within your will. You can prohibit access to accounts that you do not wish anyone to access, and you can leave final wishes on how the information will be used. Your executor does not have an “all access” pass. The things they do should still be in your best interest, and they do not receive expanded user rights under the Revised Uniform Fiduciary Access to Digital Assets.

If you do not disclose information to an account, your executor can press the account custodian for access. This is not the optimal option, however. The custodian can grant only partial access, which may leave important assets out of your executor’s reach. Alternatively, your executor may be granted access to an account that you wanted to remain private or undisclosed. For this reason, every person should consider including a digital asset provision in their estate plan. Contact an experienced estate planning lawyer to ensure yours is properly and effectively executed.

Contact Our Barrington, Illinois Estate Planning Lawyers 

When it comes to crafting an estate plan, there are many considerations to make. Your digital assets are just one. The experienced Barrington, Illinois estate planning lawyers at Drost, Gilbert, Andrew & Apicella, LLC provide the knowledge, experience, and insight you need to ensure your wishes are carried out within the guidelines of the law. Get started today by calling 847-934-6000 to schedule your consultation.

About the Author: Attorney Jay Andrew is a founding partner of Drost, Gilbert, Andrew & Apicella, LLC. He is a graduate of the University of Dayton School of Law and has been practicing in estate planning, probate, trust administration, real estate law, residential/ commercial leasing, contracts, and civil litigation. Since 2005, Jay has been a Chair of the Mock Trial Committee for the Annual Northwest Suburban Bar Association High School Mock Trial Invitation which serves over 240 local Illinois students each year.


Source:
http://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=3728&ChapterID=60






Recent Posts


Tags

insurance claim denial Rolling Meadows insurance lawyer unpaid overtime Exclusions Illinois trusts attorney Retaliatory Discharge Schaumburg wrongful death attorney consent to a search Buffalo Grove traffic lawyers boating under the influence healthcare Arlington Heights wills and trusts lawyers Long Grove estate planning Illinois mortgages personal injury attorney Buffalo Grove real estate attorney car crash insurance denial appeals Deer Park workers compensation lawyer Chicago will attorney, social media platforms, Illinois estate planning lawyer, expungement bike accident DNR comparative negligence foreclosed rental property drug crime car accidents rumble strips premises liability Illinois insurance claim attorney Buffalo Grove personal injury attorney Des Plaines accident attorney coronavirus Schaumburg commercial leases civil litigation attorney Illinois employment law attorneys traumatic brain injuries Barrington employment attorney Rolling Meadows Long Grove wills and trusts attorneys personal injury law firm BUI bicycle dooring accidents Food and Drug Administration's Food Safety Modernization Act Palatine real estate lawyer Des Plaines injury law firm cell phone tower data landlord tenant law auto accidents Whistleblower Claims drug crimes Illinois wills and trusts Rolling Meadows tax attorney Palatine drug lawyer Chicago attorney IRS Crystal Lake traffic lawyer Illinois estate planning Crystal Lake injury attorney traumatic brain injury traffic deaths suspended license Illinois will lawyer estate planning lawyer traffic crimes drug crimes lawyer Crystal Lake medical malpractice lawyer Illinois bicycle safety breathalyzer test Chicago employment attorney Illinois tax attorney Illinois real estate Crystal Lake employment lawyer Illinois employment lawyer Schaumburg estate planning lawyer special needs trust Palatine personal injury lawyer Crystal Lake car accident attorney Illinois real estate lawyer real estate zoning Self-Directed IRA Accounts Home Remodeling Repair Act Arlington Heights Traffic Lawyer insurance disputes, Illinois insurance disputes, Illinois insurance dispute attorneys, denied insurance claims, Arlington Heights insurance dispute attorneys Schaumburg insurance lawyers Des Plaines personal injury attorney llinois Real Estate Lawyers Association Crystal Lake estate planning lawyer Rolling Meadows personal injury attorney medication errors slip and fall Chicago estate planning lawyer Illinois DUI attorney Des Plaines medical malpractice attorney corporate law DUI attorney modern family estate planning Landlord Tenant Ordinance Des Plaines Traffic Lawyer Liquor Control Act Chicago traffic lawyer probate lawyer defective products criminal record estate planning trusts forming a corporation in Illinois Riverwoods estate planning lawyer Kenilworth estate planning attorneys dram shop law Inverness estate planning lawyer BAC Arlington Heights tax lawyer Chicago estate planning Arlington Heights wills and trusts attorneys car accident lawyers medical malpractice, missed diagnosis, delayed diagnosis, medical mistake, Deer Creek medical malpractice lawyers Arlington Heights Attorney real estate attorneys Illinois insurance claim dispute lawyer construction contracts privacy Illinois criminal defense attorney Crystal Lake medical malpractice attorneys Illinois medical malpractice attorney internet advance healthcare directive blended families field sobriety test pregnant women Chicago lawyer nursing home negligence Rolling Meadows personal injury lawyer landlord operating agreements Deer Park traffic lawyer condo fatal car accidents Kenilworth estate planning attorney Illinois employment law firm Super Mario Illinois personal injury lawyers Palatine workers compensation lawyer fiduciary rule Buffalo Grove probate lawyer health insurance dispute probate claims process Barrington attorney sexual harassment involuntary manslaughter Kenilworth estate planning lawyer Illinois traffic laws Rolling Meadows business lawyer head on collisions car accident home inspection lawyer Inverness real estate attorney bicycle accidents DUI penalities employment law, Illinois employment laws Crystal Lake car accident lawyer sole proprietorship federal crimes Arlington Heights lawyer Illinois defective products attorney Illinois red light cameras Illinois injury lawyer Des Plaines collections attorney Arlington Heights accident attorney pain and suffering estate planning, digital assets, Revised Uniform Fiduciary Access to Digital Assets Act, Illinois digital assets, Illinois estate planning, vacation home real estate leasing Deer Park employment law attorney Illinois personal injury attorney Des Plaines personal injury lawyers Schaumburg civil litigation attorney senior citizens Illinois small business anesthesia errors mortgage life insurance job lawyers Rolling Meadows employment law attorney underinsured motorist Deer Park real estate law firm Rolling Meadows drug defense attorney LLCs products liability Rolling Meadows insurance attorney Illinois driving without license product liability Des Plaines DUI attorney insurance denials Deer Park criminal attorney Crystal Lake will lawyer disability benefits taxes DGAA Buffalo Grove law firm hiring employees estate planning for college students power of attorney living trust benefits Barrington criminal defense lawyer Barrington employment law attorney Deer Park personal injury lawyer gift tax exemption, estate planning, estate planning strategies, Illinois estate planning, South Barrington estate planning attorneys personal injury, auto accident injuries, delayed injuries, serious injuries, Des Plaines personal injury attorneys small business wills and trusts Crystal Lake bike accident lawyer subcontractor license Illinois boating accident lawyer FSLA Crystal Lake criminal defense attorney drug possession pay when paid contract DUI Joliet general practice lawyers medical marijuana texting and driving tax attorney Rolling Meadows traffic law firm marijuana icy parking lots Rolling Meadows estate planning attorney DUI defense guardianship attorney boating DUI civil rights violation new real estate form distracted driving accident victims preventable medical errors Illinois employment law attorney denied insurance claims Crystal Lake personal injury attorney Buffalo Grove criminal defense lawyer low-ball insurance settlement Illinois insurance disputes digital information swimming pools no contest clauses Des Plaines personal injury lawyer Des Plaines drug lawyer insurance adjusters license reinstatement unpaid assessment Crystal Lake pet attorney Palatine corporate law attorneys Long Grove real estate attorney reckless homicide Palatine employment law lawyer Inverness insurance attorney Arlington Heights trucking lawyer Barrington personal injury attorney personal injury federal regulations for LLCs wills Buffalo Grove traffic attorney Illinois law murder golf accidents revenge porn foreclosure real estate attorney Crystal Lake personal injury lawyer Crystal Lake tax lawyer Deer Park traffic accident attorney drunk driving statistics Inverness corporate attorney in terrorem provision ACA real estate healthcare claims Schaumburg criminal attorney Illinois traffic accident lawyer Illinois wrongful termination lawyer Schaumburg traffic lawyer Illinois lawyer Arlington Heights car crash attorneys irrevocable trust South Barrington real estate attorney blood alcohol content murder charges Illinois speeding lawyer Arlington Heights personal injury attorney Palatine probate lawyer Inverness real estate lawyer medical research financial advisors pedestrian accident Colin H. Gilbert Chicago trucking accident attorney Deer Park medical malpractice attorney Long Grove estate planning attorneys Barrington estate planning lawyer life insurance lawyer estate tax Barrington boating accident attorney Rolling Meadows personal injury lawyers Fourth of July Inverness civil lawyer Inverness personal injury attorney Illinois Human Rights Act Illinois employment laws Arlington Heights employment attorney Illinois medical malpractice case Illinois personal injury lawyer Buffalo Grove personal injury lawyer elder abuse underage DUI commercial leasing traffic tickets employees right to work traffic accidents Rolling Meadows litigation lawyer rollover accidents institutional trustee Schaumburg injury lawyer ObamaCare Illinois employment law Illinois Trust Code Schaumburg corporate attorney Arlington Heights wills and trusts attorney eluding a police officer Arlington Heights insurance attorney Illinois insurance attorney car crash injuries employment contract Arlington Heights traffic attorney wrongful death Policy Cancellation estate planning attorney Illinois living will clemency jet ski accidents murder defense workers compensation Des Plaines civil attorney homestead rights Home Sale Contingencies Palatine traffic accidents creditors School Visitation Rights Act Do Not Resuscitate loss of consortium agent Chicago insurance claim attorneys insurance claim dispute attorney Schaumburg real estate lawyer Illinois jet ski accident lawyer insurance attorney employment law Schaumburg Attorney Illinois medical malpractice lawyers life insurance claims Illinois home inspection Schaumburg personal injury attorney caretaker rights marijuana crimes attorney IRA benefits boating accidents Illinois Smoke Detector Act manufacturing Family Medical Leave Act food poisoning Schaumburg employment law attorneys spinal cord injuries real estate lawyer Illinois workplace lawyer employment law, meal breaks, rest breaks, hotel employees, Des Plaines employment law attorneys driving Arlington Heights car accident lawyer Des Plaines criminal attorney Arlington Heights injury attorney independent contractor Illinois insurance claim dispute lawyers PTSD ken apicella business litigation power of attorney for healthcare medical malpractice compensation Des Plaines claims law firm trench injuries Transfer on Death Instrument Illinois construction accident attorney Illinois insurance dispute lawyers rent to own real estate contracts Schaumburg car accident attorney Barrington business law firm Arlington Heights medical malpractice lawyer rest breaks Crystal Lake traffic attorney Des Plaines pet law attorney Illinois LLC creation Illinois business lawyer underfunded trust Rolling Meadows car accident lawyers startup company living wills Des Plaines drug crimes lawyer natural gas explosion employee misclassification Palatine elder law attorney college kids real estate closing Mount Prospect real estate lawyer Illinois Transfer on Death Instrument TBI truck collisions work unions Rolling Meadows insurance dispute lawyers trustee Chicago corporate attorney Illinois employment attorneys unauthorized overtime Buffalo Grove insurance claim dispute lawyers estate planning, death tax, succession plans, business estate plans, Barrington estate planning lawyers uninsured motorist Palatine construction attorney distracted driving accidents Rolling Meadows boating crash lawyer insurance claim delay life insurance policy Barrington real estate lawyer Palatine employment attorney unfunded trust GM ignition switches digital assets denial of life insurance insurance dispute, insurance dispute lawyers, insurance claim denial, insurance claim delays, Rolling Meadows insurance dispute attorneys Palatine estate planning lawyer Arlington Heights personal injury lawyer Illinois business law atorneys employment contract, employment law, employment at-will, Deer Park employment law attorneys, contract, Rolling Meadows marijuana attorney back injuries Crystal Lake accident attorney Arlington Heights real estate lawyer liability claims Inverness elder law lawyer Illinois car accident attorney Crystal Lake insurance lawyer South Barrington real estate lawyer changes to mortgage law Buffalo Grove injury lawyer Barrington Traffic Lawyer license revocation Buffalo Grove medical malpractice lawyers liability mass shooting trusts Rolling Meadows criminal attorney rollover car crashes Buffalo Grove employment lawyer Illinois probate lawyer workers comp drunk driving Illinois pedestrian accident attorney Arlington Heights TBI attorney automated cars probate Illinois Workers’ Compensation Commission breach of contract Crystal Lake pedestrian accident lawyer hands free device Des Plaines motorcycle accident attorney jet ski income distribution deducation Rolling Meadows insurance dispute lawyers, insurance dispute Barrington medical malpractice lawyers personal injury accidents Des Plaines child safety loopholes Rolling Meadows employment law attorneys insurance disputes Barrington injury attorney Palatine employment lawyer construction accidents Crystal Lake employment law attorney Rolling Meadows Attorney slip and fall accidents employment lawyer paid sick leave preventing accidents criminal defense holiday statistics Thanksgiving fiduciary rule delay Arlington Heights wills and trusts lawyer overtime violations Arlington Heights employment law attorneys CAM Illinois Wage Payment and Collection Act Des Plaines tax law firm Des Plaines insurance attorney POA car accident lawyer traffic laws Employment Discrimination Law Illinois rollover accident lawyers Illinois insurance lawyer surgical mistakes Mt Prospect Attorney denied insurance claim wrongful termination Chicago employment lawyer car crashes insurance dispute attorney Deer Park motorcycle accident lawyer gift taxes digital assets, digital fiduciary, estate planning, digital content, Long Grove estate planning lawyers Forcible Entry Illinois spinal cord injury IRELA traffic offenses Palatine traffic lawyer probate claims Rolling Meadows Traffic Lawyer construction accidents, personal injury, wrongful death, Arlington Heights personal injury attorneys, workers' compensation insurance agents Schaumburg elder law lawyer Rolling Meadows criminal lawyer Deer Park accident attorney Chicago car accident lawyer capital gains tax Barrington personal injury lawyer Palatine Attorney severance agreements Des Plaines real estate attorney installment contracts Palatine insurance lawyer Arlington Heights criminal lawyer Arlington Heights estate planning attorney digital media accounts, estate planning, Arlington Heights estate planning attorney, real estate contract Barrington litigation attorney social media after death workers compensation benefits contracts insurance claim dispute Palatine business attorney Rolling Meadows DUI lawyer insurance claim denials Attorney Ken Apicella Illinois Probate Act of 1975 Inverness DUI lawyer Affordable Care Act Illinois collections attorney Crystal lake insurance dispute attorney natural gas Class A misdemeanor caregiver Crystal Lake business law attorneys Rolling Meadows medical malpractice lawyers Chicago biking tips personal injury claims appealing an insurance claim car collision Rolling Meadows corporate lawyer Palatine law firm sexual images trauma after an accident employee discrimination Illinois Sales Representative Act whistleblower protections Schaumburg drug defense lawyer living trust vs will personal injury lawyer Barrington employment law firm comp time insurance claims workplace sexual harassment attorney fees criminal law Illinois elder law attorney Jay Andrew Rolling Meadows accident lawyer speeding pet law Barrington drug crime attorney pet bites Illinois workplace discrimination attorney Schaumburg medical malpractice lawyer Crystal Lake law firm Illinois registered agent Crystal Lake civil litigation lawyer cell phone problem employees Rolling Meadows real estate attorney Illinois insurance claims lawyers commercial real estate Barrington estate planning attorney Rolling Meadows traffic attorney controlled substance Illinois wills and trusts attorneys cell phone accidents insurance claim Schaumburg criminal law attorney Rolling Meadows employment attorney condo association Schaumburg employment attorney Schaumburg estate planning attorney probate process Illinois medical malpractice claim BAIID Illinois job attorney Illinois traffic ticket lawyer insurance agent negligence texting while driving Buffalo Grove corporate attorney probate fees Long Grove estate planning attorney Barrington workers compensation attorney Long Grove real estate lawyer dealing with problem employees trust payments Inverness probate lawyer Palatine punch death insurance dispute Schaumburg probate attorney Arlington Heights pedestrian accidents Palatine injury attorney Palatine corporate attorney Crystal Lake medical malpractice law firm IRA trust transfer pedestrian-automobile accident Illinois personal injury Inverness traffic law firm Palatine civil litigation lawyer Detainer Actions estate attorney Des Plaines real estate lawyer Illinois workers compensation lawyer estate plan Rolling Meadows probate lawyer motorcycle accident Illinois attorney Illinois corporate lawyer drugs medical malpractice claims Illinois traffic attorney criminal DMV Barrington civil litigation attorney Inverness injury lawyer minimum wage Illinois pet lawyer medical malpractice first degree murder meal breaks Barrington Illinois estate planning lawyer Illinois workers compensation attorney Schaumburg personal injury lawyers Barrington criminal lawyer Illinois employee rights attorney. bad faith insurance claims Schaumburg estate attorney Palatine criminal defense lawyer Schaumburg personal injury lawyer trucking accident lawyers defective products lawyer Illinois traffic attorneys Chicago will attorney privacy laws insurance negligence deadly crashes Illinois civil litigation lawyer trucking accidents Fair Labor Standards Act Illinois estate planning law firm civil litigation living trust deed transfer compensatory time Crystal Lake employment attorney elder law FMLA Chicago insurance law firm Illinois estate planning attorney Schaumburg construction accident lawyer traffic violations Inverness accident lawyer vacation home fines filing a medical malpractice claim pedestrian accidents Legal Info personal injury claim dog bites traffic violations defense license suspension employee rights brain injury overtime pay motorcycle accident lawyer Illinois trucking safety liens employment attorney Mount Prospect elder law attorney pizza emoji pedestrian injuries, pedestrian fatality Palatine civil attorney Mount Prospect wills and trusts lawyers hit and run accident digital evidence Illinois motorcycle accident lawyer Federal Food Drug and Cosmetic Act investment property Palatine trusts lawyer fault based insurance wage theft dynasty trusts residential real estate accidental death benefits estate planning Deer Park DUI lawyer Colin Gilbert wrongful termination, employment law, whistleblower protections, Illinois employment laws, discrimination in the workplace Buffalo Grove car accident lawyer owner responsibility crossover accidents

Archive