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5 Tips For Non-Traditional Families When Creating an Estate Plan

Web Admin - Friday, June 28, 2019
Barrington estate planning lawyer same sex couplesToday’s families come in many forms. In fact, there are fewer “traditional” families than ever in which two opposite-sex parents are married for the first time and have children together. Since divorce is common, and couples often choose to live together and have children without getting married, many families include step-parents and step-children. In addition, the legalization of same-sex marriage has resulted in complex family arrangements involving biological children and adoptive children. Regardless of how a family is configured, it is important to plan for the future and ensure that all family members’ needs will be met. For non-traditional families, it is important to consider the following during the estate planning process:

1. Update your will - Your last will and testament specifies how you want your assets to be distributed to your heirs after your death and any other last wishes. You will want to be sure that your will addresses your partner, your children, your step-children, and any other family members.

2. Create a trust - In addition to your will, a trust can provide more control and flexibility for how you would like your assets to be distributed to your beneficiaries. A living trust can be changed or modified if necessary, and it can also be used to provide for your and your partner’s needs during your life.

3. Use power of attorney - While married spouses have the right to make decisions for each other, this is not always true for unmarried couples. A power of attorney agreement can be used to ensure that partners will be able to make medical or financial decisions for each other if one of them becomes incapacitated.

4. Consider a prenuptial or postnuptial agreement - When you get remarried, your new spouse will typically be entitled to receive half of your estate following your death. A prenup or postnup can ensure that certain assets will be set aside for any children you may have from a previous marriage or relationship.

5. Address plans for retirement - If you have any retirement funds saved in an account such as a 401(k) or IRA, you will want to be sure to name beneficiaries who will receive these funds following your death. You can name your spouse or partner as a beneficiary, as well as any children or step-children.

Contact a Kenilworth Estate Planning Attorney


When creating a comprehensive estate plan, you will want to be sure all of your family members will be provided for. Determining how to do so when you are in a non-traditional family can be a complex matter, and an experienced attorney can help you address issues involving same-sex partners, children from previous marriages, adoptive children, or other family members. Contact our Riverwoods estate planning lawyer today at 847-934-6000 to schedule a free 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.


Sources:
https://digitalcommons.law.seattleu.edu/cgi/viewcontent.cgi?article=1773&context=sulr

What Types of Charitable Trusts Can I Use in My Estate Plan?

Web Admin - Friday, May 31, 2019
Kenilworth charitable trusts attorneyA trust is a legal agreement created by the owner of assets or property that designates an individual (a trustee) to manage the assets and distribute them to the beneficiaries named in the trust. Assets can be distributed either during the life of the person who creates the trust (known as the grantor) or after their death. In many cases, a grantor chooses to pass their assets to relatives or close friends; however, some may also wish to support a cause they believe in by naming a charity as a beneficiary. In these cases, charitable trusts can be used, and they typically fall into one of two categories: charitable lead trusts and charitable remainder trusts.

Charitable Lead Trusts


This type of charitable trust has a time limit tied to the funding that is provided to one or more charities. Once the time period ends, the rest of the assets are given to non-charitable beneficiaries. The process begins with an initial donation to fund the trust. Charitable lead trusts do not require a minimum or maximum charitable payment amount, and a grantor may prefer to make a cash contribution to be eligible for immediate tax deductions. The payments will then be sent to at least one charity of the grantor’s choosing. This must be done at least once a year for a specific number of years or for the remainder of the lifespan of the grantor. Once the trust’s term has ended, the rest of the funds are given to the beneficiaries chosen by the grantor.

Charitable Remainder Trusts


Many will choose charitable remainder trusts because they can provide regular income for the grantor or their beneficiaries in addition to donating assets to charity. This type of trust is almost the exact opposite of a lead trust, with assets being distributed to beneficiaries during the term of the trust, and any remaining assets being donated to charity after the grantor’s death. 

The first step in creating a charitable remainder trust is making a partially tax-deductible donation. This can include cash, stocks, real estate, or private business interests. During the term of the trust or the remainder of the grantor’s life, assets held in the trust may be distributed to beneficiaries, such as the grantor’s loved ones or even the grantor themselves. Beneficiaries can receive income only once per year or as frequently as every month. After the grantor’s death, the selected charity or charities will receive the remainder of the assets. 

Contact an Arlington Heights Charitable Trusts Lawyer


Estate planning is an extremely complicated process that requires extensive attention to detail. While charitable trusts can provide a number of benefits, it is important to ensure that the correct steps are followed when creating this type of trust. At Drost, Gilbert, Andrew & Apicella, LLC, we can help you determine which trusts will be best for you and your beneficiaries. Contact a Long Grove estate planning attorney at 847-934-6000 for a free 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.


Sources: 
https://www.fidelitycharitable.org/philanthropy/charitable-lead-trusts.shtml
https://www.fidelitycharitable.org/philanthropy/charitable-remainder-trusts.shtml 


Why Everyone Over Age 18 Should Have a Power of Attorney

Web Admin - Wednesday, April 24, 2019
Barrington power of attorney lawyerA power of attorney is one of the most basic, and yet most important, legal protections that every adult should have. A power of attorney (POA) is a legal document that gives another person the authority to act in your place when you cannot be physically present yourself or if you become incapacitated. There are two types of POA, for property and for healthcare. A power of attorney for property authorizes a designated person to handle your financial affairs, while a power of attorney for healthcare empowers your named representative to make medical decisions on your behalf. 

When Is the Right Time to Create a Power of Attorney?


Imagine that you are struck tomorrow by a catastrophic accident or sudden incapacitating illness. If you are married, your spouse should have access to your financial resources to pay for your medical care and the right to make medical decisions on your behalf. But consider what would happen if you are not married or if your spouse is incapacitated at the same time you are. Do you think your immediate family members would agree on who should take charge of your financial affairs and make medical decisions for you? Having a POA in place will head off disputes that could cause long-term rifts in a family.

Young adults often assume that their parents will be able to step in and handle everything in such an event. However, once you turn 18, your parents do not necessarily have the legal authority to access your medical records and bank accounts and to make healthcare and financial decisions on your behalf. 

Similarly, adults with aging parents may assume they can step in at any time and take over their parents’ affairs. However, why leave it to chance? Do you really want siblings fighting over who is going to take charge? Instead, encourage your aging relatives to sign powers of attorney while they are still competent to make that choice. The POA can be a first step toward creating a comprehensive will and estate plan.

What Does a Power of Attorney for Property Do?


You can create a very limited power of attorney document for a specific situation, such as authorizing your lawyer to handle a real estate closing for you when you cannot be present in person. More commonly, the purpose is much broader. A power of attorney document will specify a list of decisions that your designated representative can make on your behalf, such as selling your home; trading stocks, bonds, and other investments; collecting Social Security and other retirement benefits on your behalf; paying bills from your checking account; managing a trust account; and filing your tax returns.

What Does a Power of Attorney for Healthcare Do?


When you prepare a POA for healthcare, you can specify the powers that your designated representative will have and when those powers will take effect. The medical topics covered in a healthcare POA may include:

- Whether your POA will have full access to your medical records.

- Whether you want extraordinary measures taken to keep you alive as long as possible or instead wish to prioritize quality of life over length of life.

- In what type of circumstances you want life-sustaining treatment to be administered or withheld, or whether you would only like pain-relieving medication to be administered.

- Whether you want to be an organ donor upon your death.

- How you want your mortal remains handled upon your death, e.g., burial or cremation.


Consult a Schaumburg Power of Attorney Lawyer


An attorney can serve as a neutral third party when you need to convince an elderly relative to sign powers of attorney while they are still competent, particularly if you are assisting them with moving out of their home and into some type of assisted living facility. If you need a POA for yourself but are not sure what powers you want to grant your designated representative and when you want those powers to take effect, an experienced Palatine estate planning attorney can explain your options. Call Drost, Gilbert, Andrew & Apicella, LLC at 847-934-6000 to set up a free initial 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.


Sources:
http://www.ilga.gov/legislation/ilcs/ilcs5.asp?ActID=2113&ChapterID=60
https://www.isba.org/ibj/2015/04/estateplannersadoptandadaptnewhcpoa

3 Reasons Why a Living Trust Is More Beneficial Than Just a Will

Web Admin - Wednesday, January 23, 2019
Des Plaines living trust lawyerIf you wish to leave a legacy to your children or other beneficiaries after your death, it is imperative that you have an estate plan that will ensure prompt and accurate distribution of your assets. Many people think that writing a will is the best way to do this. However, while a will is important, putting your assets into a revocable living trust can provide several additional benefits.

Avoid the Illinois Probate Process 


In order to distribute assets according to the terms of a will, the will must go through the probate process. This involves filing various court documents required by law to establish the value of each asset and to re-title each asset from the deceased’s name to the recipient’s name. This can be a long, drawn-out process.

Secure Adult Heirs’ Immediate Access to the Estate


One of probate’s most serious drawbacks is the freezing of assets. Specifically, any assets that are held solely in the name of the deceased are frozen upon their death. Imagine a married couple who amassed several large investment and retirement accounts and multiple pieces of real estate during their lifetime. Upon the death of both spouses, their children cannot touch any of the assets until a probate court judge approves the will and appoints a Personal Representative to handle the estate. Leaving large investment accounts without active management can be risky.

By comparison, imagine that all of the couple’s assets had been placed in a living trust, meaning that the assets are titled in the name of the trust rather than in the name of any individual. Upon the death of the trust-maker, their designated successor has immediate access to the assets of the trust.

Secure Assets for the Long-Term Benefit of the Family


Imagine our married couple has three children and has a will. Upon the death of both spouses and probate action, the assets of the estate must be divided amongst the named heirs. Assuming the estate is to be divided equally among the three children, the inherited assets are now at risk to creditors, bankruptcy, a lawsuit, or a divorce. 

Creditors. If the married couple had all of their assets in a trust, ownership of those assets can remain titled in the name of the trust indefinitely. Because the assets are not titled in the individual children’s names, the assets are protected from creditors, even if one child files for bankruptcy or gets divorced. The beneficiaries named in the trust will have access to the assets in accordance with the directions specified in the trust documents. 

Heirs with disabilities. Upon the death of the spouses, one child (or an objective third party such as a bank) could be named as the successor trustee with directions to manage the trust in a certain way. This approach can be used to ensure that the use of the assets is prioritized in some way, such as to meet the basic needs of a child or grandchild with a disability. Keeping the assets in the trust can also serve to protect the right of a disabled heir to receive needs-based government benefits.

Underage heirs. Keeping the trust open with a successor trustee can also be beneficial for heirs who have not yet reached adulthood. When a will leaves assets to a minor, the probate court must appoint a conservator to manage the minor’s assets. Once our fictional married couple has died, there is no telling who that conservator might be and what decisions they might make. In contrast, assets left in a trust can be managed according to specific directions written into the trust. Thus, the maker of the trust can dictate when and for what purposes a youthful (or even as-yet unborn) heir can access their inheritance.

Consult a Palatine Revocable Living Trust Lawyer


A well-thought-out living trust can give you greater peace of mind and benefit your heirs in the long run. To discuss options for writing or updating a living trust, call an experienced Schaumburg living trust attorney at Drost, Gilbert, Andrew & Apicella, LLC. We have prepared living trusts for many high-asset families with complex issues of inheritance. To set up a free initial consultation, call 847-934-6000.

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.


Sources:
https://www.isba.org/public/guide/livingtrust

Treatment of Same-Sex Spouses and Civil Union Partners Under Illinois Probate Law

Web Admin - Wednesday, November 21, 2018
Rolling Meadows same sex couple estate planning lawyerThe state of Illinois has recognized civil unions of same-sex couples since 2011 and same-sex marriage since 2014. But it was not until 2015, when the U.S. Supreme Court issued its ruling in the case of Obergefell v. Hodges, that all states were required to allow and recognize same-sex marriages. These changes over the past decade have had a major impact on estate planning for same-sex couples.

Differences Between Illinois’ Civil Union Act and Marriage Fairness Act


The 2011 Illinois Religious Freedom Protection and Civil Union Act (750 ILCS 75) declares that a party to a civil union “is entitled to the same legal obligations, responsibilities, protections, and benefits” that the law of Illinois affords to spouses. This law did not, however, mention children of civil union partners or other family members.

The 2014 Religious Freedom and Marriage Fairness Act (750 ILCS 80) more forcefully declares that its purpose is to provide same-sex and different-sex couples and their children “equal access to the status, benefits, protections, rights, and responsibilities of civil marriage.” It goes on to say that parties to a marriage and their children “shall have all the same benefits, protections, and responsibilities under law.”   

Conversion of a Civil Union to a Marriage in Illinois


Civil unions were not automatically converted to marriages when the 2014 law was passed. Rather, the Civil Union Act was modified in 2014 to allow the voluntary conversion of a civil union to a marriage at no cost. Through May 2015, a couple could have their civil union redesignated as a marriage just by applying to a county clerk. The effective date of the marriage would be the same as the effective date of the earlier civil union. 

As of June 2015, parties to a preexisting civil union must apply for a marriage certificate and have the marriage solemnized and registered as a marriage. The effective date of that marriage would be the date the marriage was solemnized.

Impact of a Civil Union vs. Marriage on Estate Planning


Spousal inheritance rights are the same in Illinois, whether you are legally in a same-sex civil union, same-sex marriage, or different-sex marriage. Still, if you entered into a civil union, you may want to convert that to a marriage, just to ensure that your relationship is recognized as a legal marriage nationwide and internationally. For example, when partners are citizens of different countries, an actual marriage certificate will generally be needed in order for the spousal relationship to be recognized for immigration purposes. In addition, the same-sex marriage law specifically references “children” and “family” of the couple.

Also, if you entered into a civil union at some point, and the relationship broke up, you should be sure that the civil union was legally dissolved; the process is the same as for the dissolution of a marriage in Illinois. If the civil union was not legally dissolved, or converted to a marriage followed by a divorce, one partner could still claim the right to inherit from the other.

Inheritance and Related Rights of Same-Sex Married Couples Recognized Nationally


Same-sex couples gained numerous inheritance-related benefits as a result of nationwide legalization of same-sex marriage, such as:

- The couple no longer has to worry about moving from a state where same-sex marriage was recognized to a state where it was not.

- If one spouse dies without a written will or trust, the other will now automatically inherit under the laws of their state of residence.

- When one spouse dies, the other can claim the marital deduction for federal gift and estate tax purposes.

- When one spouse dies, leaving the other as beneficiary of a qualified retirement account, the surviving spouse can roll over those assets into their personal retirement account, allowing for optimal asset protection and income tax planning. 

- As a living individual in 2018, you can make inter vivos gifts of up to $15,000 per person per year with no tax implications. However, you can gift as much as you want to your spouse. 

- Spouses can make medical decisions for one another without requiring a power of attorney for health care.

Consult a Palatine Same-Sex Marriage Estate Planning Lawyer


Whether you are married to a same-sex or different-sex spouse, particularly if you have children, you should really have an estate plan, including basic documents such as advanced healthcare directives and powers of attorney. Talk to an experienced Schaumburg estate planning attorney at Drost, Gilbert, Andrew & Apicella, LLC. We can help you develop a will, trust, and other legal plans that will provide emotional and financial security for you and your family for the long-term. Contact us at 847-934-6000 for a free 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.


Sources:
http://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=3294&ChapterID=59
http://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=3525&ChapterID=59

Why Top 15% Income Households Need to Start Estate Planning Now

Web Admin - Wednesday, October 24, 2018
Schaumburg estate planning lawyer wealth protectionYou do not have to be Jeff Bezos or Elon Musk to need an estate plan. You do not even need to be earning $1.4 million a year, which is the average annual income of the top 1% of Illinois households. However, if you are fortunate enough to be in the top 15%, you will likely amass enough assets to need an estate plan. For perspective, a 2017 household income over $140,000 per year puts you in the top 15% of U.S. households; over $170K puts you in the top 10%, over $225K in the top 5%, and over $431K in the top 1%. If you fall into these ranges, here are three reasons why you should start an estate plan: 

1. You may think it is too early to be worrying about an estate plan. It is not. 


If you belong to the Baby Boomer generation, you are now age 54 to 72. Gen Xers are age 39 to 53. You may be in great health today, but you cannot predict what will happen tomorrow. You do not want to leave your family in chaos, trying to figure out what to do in the event of a sudden illness or death. Peace of mind is a gift you give yourself and them when you make the time to create an estate plan.

2. You may think your estate is not big enough to require “planning.” It may be bigger than you realize.


Have you totaled up your assets lately? Your home, vehicles, whole life insurance, retirement accounts, other investments, and personal property may add up to more than you realize. You may think that you will use up your entire retirement savings during your lifetime, but many people will not. If you have invested wisely, you may be able to live off the earnings and hardly touch the principal. Also, your primary home, vacation home, or other assets (artwork, jewelry, gold coins) may appreciate in value more than you expect. With an estate plan, you can make sure your assets are distributed according to your wishes.

3. You may think that a simple will that divides your estate equally among your children is enough. But have you allowed for the unexpected?


An experienced estate planner will point out the types of unexpected events that can occur and the important contingencies that you should cover in your plan, such as: 

- What if one of your heirs becomes disabled or cannot be trusted with money due to an addiction? You may want to place your money in a trust with scheduled distributions, with a trustee who has the authority to distribute more or less money if circumstances warrant.

- What if someone does not want the asset you want to give them? For example, you may want to make sure your lake cottage stays in the family, with each child owning an equal share. But what if one of them moves far away or cannot afford the maintenance costs? Also, when it passes to the next generation, what happens if one child has three offspring and another has just one? Is it fair for one grandchild to have a 50% say in future decisions while the other three grandchildren split the remaining 50%? An experienced estate attorney will anticipate and know how to solve for such problems. 

- What if you outlive your presumed heirs? Do you have siblings or other relatives you would like to provide for?

- What if your final estate is likely to be substantially larger than you think your heirs need? Are there any charitable causes you would like to support, perhaps only if your final estate exceeds a certain amount?

Consult a Kenilworth Estate Planning Lawyer


These are just three of the reasons that an income earner who is in the top 15% should be starting their estate plan now. For more information, contact the experienced Inverness estate planning attorneys at Drost, Gilbert, Andrew & Apicella, LLC. We will help you develop a savvy estate plan that will provide emotional and financial security for you and your family. Contact us at 847-934-6000.

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.



Sources:
https://dqydj.com/united-states-household-income-brackets-percentiles/
https://money.usnews.com/money/retirement/baby-boomers/articles/2018-07-05/6-common-myths-about-estate-planning
https://www.kiplinger.com/article/retirement/T021-C032-S014-10-surprisingly-common-estate-planning-mistakes.html

The Illinois Will Probate Process: Settling an Estate

Web Admin - Friday, September 21, 2018
Arlington Heights estate planning probate lawyerThe passing of assets from one generation to the next is a long-standing tradition, typically governed by a written will. When a person with a large estate dies, a legal process called probate ensures that the terms of the will are properly carried out. The process of probating a will in Illinois is controlled by the Illinois Probate Act and the rules of the circuit court in the decedent’s county of residence.

When an Illinois Will Must Go Through Probate


An Illinois estate must be probated when its total value exceeds $100,000 (excluding jointly-held properties and accounts with named beneficiaries, which transfer automatically upon death).

The Process to Probate a Will in Illinois


1. Petition for Probate - The first step is to file a Petition for Probate with the circuit court. This petition includes the will itself, the current estimated value of the estate, the names and addresses of heirs, and other information necessary to begin settling the estate. The executor named in the will or their appointed attorney must file this petition within 30 days of the decedent’s death and send copies to all heirs.

2. Hearing to Open Probate - The court will conduct a short hearing to officially validate the will and admit the will to probate. At the hearing, heirs may enter their objections to any part of the petition, such as the validity of the will itself, the person(s) designated to administer the estate, or the person(s) designated to act as personal fiduciaries for any underage or disabled heirs. The court will approve the executor and issue letters testamentary that authorize the executor to act on behalf of the estate.

3. Inventory of Assets - The executor has the responsibility to locate and secure all assets of the estate. A written inventory must be made, listing all bank and investment accounts, real estate, and personal property of significant value. Appraisals may be necessary to establish date of death” values for each piece of real and personal property.

4. Payment of Debts and Taxes - The executor must notify all creditors of the decedent and pay outstanding bills, including property taxes and any other expenses necessary to protect the assets of the estate. The estate must remain open for at least six months to ensure that all creditors are identified and paid. The executor must also file final state and federal tax returns for the decedent.

5. Petition for Distribution of the Estate - Upon conclusion of the prior steps, the executor must provide an accounting of their work on the estate, including all receipts and disbursements. The executor will then ask the court for permission to distribute the remainder of the estate according to the terms of the will. (When there is no question that the estate contains more than sufficient funds to pay off all debts, some distribution of assets may occur before the final accounting.) 

Consult a Palatine Estate Planning Lawyer


Ensure that your hard-earned assets are distributed to your heirs according to your wishes. An experienced Barrington estate planning attorney at Drost, Gilbert, Andrew & Apicella, LLC can help you develop an estate plan that will meet your specific goals and, after your death, ensure that your will is probated efficiently. Contact us at 847-934-6000.

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.



Sources:
http://www.ilga.gov/legislation/ilcs/ilcs5.asp?ActID=2104&ChapterID=60
http://www.cookcountycourt.org/ABOUTTHECOURT/CountyDepartment/ProbateDivision/Part12RulesoftheCircuitCourt.aspx

Using a Special Needs Trust to Assist a Disabled Family Member

Web Admin - Friday, August 10, 2018
Inverness estate planning trust attorneyPeople who have saved money or accumulated assets over the course of their lifetime will often want to pass these assets on to their loved ones, either before or after their death. This is especially true when family members have disabilities or other special needs. However, when providing financial assistance to these family members, it is important to make sure that doing so will not make them ineligible for the public benefits they need to meet their needs. An experienced estate planning attorney can help you protect your loved ones’ interests by establishing a special needs trust.

Benefits of a Special Needs Trust

People with mental or physical disabilities are usually able to receive government benefits such as Supplemental Security Income (SSI) or Medicaid. However, eligibility for these benefits is based on the income earned and assets owned by the recipient; in most cases, a recipient must own no more than $2,000 in assets, and there are also limits on the amount of income they can earn. This means that if a well-meaning family member gives them money or other assets, either through a direct gift or an inheritance, it may make them ineligible for the benefits they need. 

To avoid jeopardizing a disabled person’s ability to receive public benefits, their family members can use a special needs trust (sometimes called a supplemental needs trust). This is a type of irrevocable trust in which the assets will be placed under the control of a trustee, which could be another family member or a financial institution. The trustee will then ensure that the assets are used to provide for the beneficiary’s needs.

There are specific rules that must be followed in special needs trusts. For instance, the trust can only be used to pay for certain expenses related to the beneficiary’s care, such as the costs of medical equipment, caretakers, transportation, or educational expenses. Using funds from a trust to pay for food or housing may make a beneficiary ineligible for public aid. 

Contact a Schaumburg Trust Attorney

Since a disabled person will often need assistance throughout their entire life, it is important to ensure that trusts are set up in a way that will provide them with the resources they need for many years to come. An Arlington Heights estate planning lawyer at Drost, Gilbert, Andrew & Apicella, LLC can help you create a special needs trust that meets your loved one’s needs, and we can help you address any other estate planning needs, ensuring that you can provide for your family both before and after your death. Contact us at 847-934-6000 to arrange 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.



Sources:
https://www.investopedia.com/terms/s/special-needs-trust.asp
https://money.usnews.com/money/personal-finance/articles/2015/11/04/how-to-draw-up-a-special-needs-trust-for-a-child-with-disabilities
https://www.cnbc.com/2017/10/25/how-to-set-up-a-special-needs-trust.html

Two Important Benefits Provided By a Living Trust

Web Admin - Tuesday, August 07, 2018
Arlington Heights trust lawyerThe thought of planning for what should happen after one’s death is often too morbid for many people to want to consider. However, doing so is incredibly important, since you want to be sure that your wishes will be followed correctly and that your heirs will be able to receive the assets you plan to pass on to them with minimal complications. While you may think that the estate planning process begins and ends with the creation of a last will and testament, another tool that can be very powerful is a living trust. 

Trusts allow you to protect certain assets, placing them in the control of a trustee and passing them to your beneficiaries once certain requirements are met. With a living trust, you can serve as the trustee while you are still living and mentally competent, giving you control over your assets and allowing you to revoke or change the terms of the trust to meet your and your family’s needs. There are a number of benefits to using a living trust, but two of the primary advantages are:

1. Avoiding Probate

When a person dies, the executor of their estate will enter their will into probate court, which is a process that can be lengthy and expensive as the court reviews the will and approves the paying of debts and taxes and the passing of assets to beneficiaries. The will is entered into public court records, meaning that the family’s personal business is available to be viewed by anyone who wants to examine the court documents. 

A trust, on the other hand, does not have to go through the probate process. This will allow assets to be passed to beneficiaries much more quickly and with fewer complications, and it will also ensure that the details about the estate are kept private.

2. Planning for Illness or Incapacitation

In many cases, when a person becomes ill or incapacitated or is no longer able to manage their own affairs, a friend or family member is named as their legal guardian. Guardianship will often not only give a guardian control of a person’s health and personal care, but also their financial affairs. This type of situation is not ideal, but a living trust can help you avoid losing control of your finances by addressing how things should be handled if you are incapacitated. 

Your trust can specify what conditions should exist for you to be declared incapacitated or mentally incompetent, and it can name a successor trustee who will manage the trust in this situation. The trustee can ensure that you have the financial resources you need to provide for your own care, while preserving your assets to pass on to your beneficiaries after your death.

Contact a Palatine Estate Planning Attorney

If you want to know more about how to use a living trust to protect your assets and pass them to your heirs, the attorneys of Drost, Gilbert, Andrew & Apicella, LLC can answer your questions and work with you to create a comprehensive estate plan. Contact a Schaumburg living trust lawyer 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.



Sources:
https://www.thebalance.com/the-benefits-of-a-revocable-living-trust-vs-a-will-3505405
https://www.thebalance.com/pros-and-cons-of-revocable-living-trusts-3505384

Advance Directives, Living Wills, and Healthcare Power of Attorney

Web Admin - Thursday, February 08, 2018
Schaumburg estate planning lawyer advance directivesProper estate planning is essential for every family, and the decisions made during this process will allow you to protect your personal property and financial assets and pass them on to your heirs after your death. But in addition to considering what will happen after you die, it is also a good idea to plan for how medical decisions will be handled for you if you ever become unable to make these decisions for yourself. The documents detailing your instructions in these matters are known as advance directives, and the two most common directives are living wills and healthcare power of attorney.

Living Wills


With a living will, you can inform a doctor or other healthcare provider that you do not want them to use medical procedures which will delay your death if you are diagnosed with a terminal illness. A living will only goes into effect if you have an “incurable and irreversible condition [in which] death is imminent” and you are unable to communicate your preferences to your doctor.

Illinois law provides a standard form for living wills, but you may also create your own customized document, including specific instructions about certain situations or medical procedures you do not want your doctor to perform.

Healthcare Power of Attorney

A healthcare power of attorney document allows you to name someone who is authorized to make decisions for you if you cannot make decisions for yourself. You can give this person, known as your agent, broad authority to make decisions, or you can include specific instructions about what types of decisions they can make, what treatments you do and do not want to receive, whether you would like to donate your organs after your death, and how your remains should be disposed of.

Healthcare power of attorney will go into effect as soon as the document is signed, and your agent will continue to have authority to make decisions until your death, unless you include a time limit. If you have both a living will and healthcare power of attorney, decisions about death-delaying treatments will be made by your agent, unless they are unavailable, in which case your doctors will follow the instructions in your living will.

Contact a Schaumburg Estate Planning Lawyer


In addition to healthcare power of attorney and a living will, you may want to consider other advance directives: a mental health treatment preference declaration which will describe what treatments for mental illness you want to receive if you cannot make decisions for yourself, or a do not resuscitate (DNR) order which states that you do not want to be revived if you stop breathing or your heart stops beating.

If you want to know more about how to create the advance directives that will ensure your wishes are carried out correctly if you are incapacitated, the skilled attorneys at Drost, Gilbert, Andrew & Apicella, LLC can answer your questions and work with you to create the documents you need. Contact our Barrington estate planning attorneys 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.



Sources:
http://www.dph.illinois.gov/topics-services/health-care-regulation/nursing-homes/advance-directives
http://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=2110&ChapterID=60


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