When a parent prepares a will, keeping distributions even among the children has advantages. It is impossible to determine what one’s children will be doing in the future and what their incomes will be. The child who is a successful computer analyst today might be out of work in five…
In a recent article in the Wall Street Journal titled: A Ruling Eases Tax-Free Gifts, Laura Saunders points out a recent U.S. Tax Court ruling which affirmed allowing a couple the use of Crummey trusts to make tax-free transfers of $1.6 million without using any of their lifetime gift-tax exemptions.…
In her article Advisers Should Address These Legal Issues Before Clients’ Kids Head to College, Liz Skinner outlines the need for college students to have particular legal documents in place when they leave for school. Power of Attorney for Property. This document allows the parent to pay a bill, secure…
In a recent issue of Kipplinger’s Retirement Report several problems are pointed out which can arise when someone who is not the spouse of the IRA owner inherits an IRA. Another problem is not addressing the issues raised when there is a non-person beneficiary of an IRA. If an IRA…
In her article, Practical Tips and Tricks on What You Should Do With Your Estate Plan, Julie Garber advises completely funding your revocable living trust so that all of your assets can be managed by the trustee. Ms. Garber states, ” Many people fail to realize that funding their trust…
In a recent issue of Kipplinger’s Retirement Report several problems are pointed out which can arise when someone who is not the spouse of the IRA owner inherits an IRA. Another problem is the fact that nonspouse beneficiaries cannot roll an inherited IRA into their own IRA. A new account…
In a recent issue of Kipplinger’s Retirement Report several problems are pointed out which can arise when someone who is not the spouse of the IRA owner inherits an IRA. One problem is failing to take required minimum distributions. Required minimum distributions must be taken by owners of traditional IRAs…
The first three steps which should be taken after the death of a loved one are to make the funeral arrangements, secure the house and find the important papers. In her article in The Wall Street Journal titled “Steps for Heirs to Take After a Death”, Jilian Mincer discusses why…
Illinois laws provide asset protection for homes and life insurance policies. The protection provided to a home, whether it is a house, a condominium or other form of primary residence, is $15,000 per individual. The protection provided for life insurance policies equals the value of the policy as long as…
In his article, When is it Too Late for Asset Protection?, Attorney Robert Mintz discusses the pitfalls of asset protection planning. He points out that states, including Illinois, have fraudulent transfer laws. These laws prohibit an individual from transferring property to another entity to “hinder, delay or defraud” someone owed…