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

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

Archive