New senior minefield: The DRA comes to IllinoisElder Law, June 2010The Federal Deficit Reduction Act of 2005 imposes harsh penalties against seniors who gift money to family members and charities.
Not just a billBy Mary CascinoElder Law, June 2010HB 6477, which revises the Illinois Power of Attorney Act to minimize abuses, has passed the Illinois General Assembly and is ready for the Governor to sign.
2010 Bank Convenience Accounts: An exciting new tool?By Graham Boardman SchmidtTrusts and Estates, May 2010Many bank customers may find it useful to establish an account that grants possession, but not title, of funds to another individual.
Basis adjustments for 2010 estates: A navigation system for unknown routesBy Alan E. StumpfTrusts and Estates, April 2010In 2010, the basis of property acquired from a decedent is no longer automatically stepped-up. Rather, the basis is the decedent’s adjusted basis in that property or the fair market value of the property on the date of death, whichever is less.
Congress may be frozen, but the Supreme Court is acting!By Philip E. KoenigTrusts and Estates, February 2010Normally, the activity of the United States Supreme Court and the Illinois Supreme Court has little effect on the work of trust and estate lawyers. In 2009, however, there were three decisions of note: one by the U.S. Supreme Court and two by the Illinois Supreme Court that are of significance and importance to trust and estate lawyers.
Estate tax or not: Reasons your clients still need estate planningBy Jodie E. Distler HanzlikTrusts and Estates, February 2010The 2010 estate tax “repeal” has not gone unnoticed by most attorneys and certainly has been the subject of intense scrutiny, dialogue and debate among tax planning professionals.
Estate plan prepared by guardian not ripe for challengeBy Margot GordonTrusts and Estates, January 2010In October 2009, the First District dismissed the appeal of the former caretaker and nephew-in-law of a disabled person (both of whom were named in the disabled person’s prior estate planning documents) of the dismissal of their challenge to the corporate guardian’s new estate plan for the disabled person for lack of standing.
Say bye-bye to passive activity losses: A possible past-time for LLCs and LLPsBy Jesse T. CoyleTrusts and Estates, January 2010Limited liability companies (LLCs) and limited liability partnerships (LLPs) are well ingrained as two of the preferred techniques used by estate planning professionals. Both LLCs and LLPs offer significant advantages that many other techniques do not: valuation discounts, retention of control, and tax efficiency. To the delight of those individuals who use LLCs and LLPs in their estate planning work, the perceived tax efficiency of these methods has improved through two recent court cases.
The new Illinois QTIP election: Answers to your questions and more questionsBy Jason S. OrnduffTrusts and Estates, November 2009After significant discussion and lobbying, Illinois has joined 11 other states in enacting a state-qualified terminable interest property (QTIP) election separate and distinct from the federal QTIP election of I.R.C. Section 2044.
The Roth decision in 2010: Conversions and afterthoughtsBy David A. BerekTrusts and Estates, November 20092010 promises to be an opportunistic year for Roth IRA planning, and an interesting year to say the least from a tax legislation standpoint.
Ethics corner: Careful with capacityBy Sara SiddiqiTrusts and Estates, September 2009ACTEC commentary on clients with diminished capacity, specifically Model Rule of Professional Conduct (MRPC) 1.14, provides additional guidance to the estate planning practitioner. Specifically, the commentary provides advice on how to address the various disability determinations that a lawyer may encounter: a client whose testamentary capacity is uncertain, borderline, or doubtful.
MINORITY REPORT: Understanding the Illinois Uniform Transfers to Minors ActBy Jay S. GoldenbergTrusts and Estates, September 2009Guardianship has been the traditional approach to dealing with a basic issue: how do you transfer property to a minor – who is legally incapable of selling or managing it – since their contracts are not valid.
The School of 529: Learning by Trial and ErrorBy Katarinna McBrideTrusts and Estates, September 2009Section 529 plans are an attractive and convenient means of saving for college that offer substantial tax benefits.
The what ifs… Tax reflectionsBy Katarinna McBrideTrusts and Estates, September 2009Once again the estate tax is being used as political leverage rather than being thoughtfully and appropriately revised to reflect the modern dynamics of families and wealth.
Planning for post-EGTRRA wealth transfer taxesBy Sean YoungTrusts and Estates, August 2009As the days wane on the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), the legislation’s final act would be to repeal the estate and GST taxes altogether in 2010, while retaining the gift tax along with a $1 million gift tax exclusion and a maximum rate of 35 percent.
Choosing a Roth IRABy Jesse T. CoyleTrusts and Estates, July 2009The ultimate consideration in deciding whether to choose a Traditional or Roth IRA generally becomes whether you would rather pay tax now or later.
Ethics cornerBy Donald L. ShriverTrusts and Estates, July 2009If you have blown the Statute of Limitations, the 1st District says just extend it to meet your own needs.
A GRAT way to transfer wealth. Well, at least for now…By Jesse T. CoyleTrusts and Estates, July 2009If you possess assets that are appreciating fast (or at least you think they will), the GRAT is simply one of the most effective ways of transferring value at a low cost. The future of this technique is not clear, however, as proposed legislation could render it ineffective.
Should Illinois adopt the TOD deed?By Darrell DiesTrusts and Estates, July 2009Transfer on death of securities has worked well in Illinois for many years, so why not extend the transfer-on-death concept in Illinois to real estate and thereby allow a named beneficiary in a TODD to take direct ownership of real estate upon the grantor’s death? Let’s take a closer look at the TODD concept?
Uncertain times for estate planners: What changes loom for 2009?By Jesse T. CoyleTrusts and Estates, July 2009Several possible changes that may occur in the very near future pose great uncertainty for estate planners. The biggest uncertainty revolves around the estate tax.
Claims against a decedent’s non-probate property in IllinoisBy Joel A. SchoenmeyerAgricultural Law, June 2009Dealing with claims against an Illinois decedent’s non-probate property is critical in cases where the decedent’s probate estate is insufficient to pay all valid claims, or where no probate estate has been opened for the decedent.
New virtual representation lawBy Lyman W. WelchTrusts and Estates, June 2009SB 188 passed both houses of the Illinois legislature with no dissenting votes. When signed by the Governor, the new law will become effective January 1, 2010. This new law originated from the ISBA Trusts and Estates Section Council.
Probate Act problems in proving up willsBy Lawrence P. DevensTrusts and Estates, June 2009This article examines the problem that arises when a petitioner must rely on a witness attestation clause to admit a will in a “formal proof” hearing under the Probate Act.
The Safety GRAT™By Robert T. NapierTrusts and Estates, June 2009Many clients believe that the greatest enemy to their wealth is the federal estate tax. The reality is that very few estates actually pay a federal estate tax and current estimates are that fewer than 20,000 estates annually will actually pay the federal estate tax. Furthermore, it is understood that quality estate planning can materially reduce, if not eliminate, any tax due.
