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

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

Archive