In his article titled Estate Planning for a Family with a Special Needs Child, Sebastian V. Grassi, Jr. lists five estate planning options for parents of a special needs child: 1. Distributing assets directly to the special needs child; 2. Disinheriting the special needs child; 3. Leaving property to another…
What is a Trust? Example: You are visiting your sister in Australia for six months and your son needs $5000 for living expenses while you are gone. You could deposit $5000 in his checking account. But what if you are concerned that he might spend it on a wall size…
When considering how to minimize or avoid the time and expense of going to court and becoming involved in the probate process, it is important to be familiar with the distinction between probate and non-probate property. Upon death, an individual’s assets are divided into two categories: probate property and non-probate…
Asset protection for a business can be straight forward and a relatively simple matter to implement. At the same time, it can protect a large chunk of the assets of a business. For example, in the case of a company that runs a manufacturing business, the usual business structure is…
A Charitable Remainder Unitrust (CRUT) has advantages over a Charitable Remainder Asset Trust (CRAT). Unlike the CRAT, a CRUT allows you to make as many contributions as you would like. Also the asset’s current market value is not its value on the date it was transferred to the CRAT but…
Conservative investors who want a predictable income year after year may prefer a Charitable Remainder Annuity Trust (CRAT) to a Charitable Remainder Trust (CRT). A CRT pays a fixed annuity which equals a percentage of the fair market value of the assets transferred to the CRT or a percentage of…
A Charitable Remainder Trust (CRT) allows you to donate to your favorite charity while benefitting yourself. It allows you to defer capital gains on the sale of appreciated asset, receive income, take advantage of a current income tax charitable deduction and receive future estate tax deductions. A CRT works best…
One way which a parent, relative or friend can help fund the education of a child is by the creation of a Crummey Trust. This kind of trust, which qualifies the parent or other donor for the gift tax annual exclusion ($14,000 per beneficiary), gives the trust beneficiary the power…
The annual gift tax exclusion is a simple estate planning option that reduces federal estate taxes. You can give away $14,000 tax free each year to as many people as you would like. If you are married, you and your spouse can each make annual exclusions gifts thereby doubling the…
You do not have to sell your home in order to qualify for Medicaid coverage of nursing home care in Illinois; however the state can file a claim against your house after you die. You can freely transfer your home to the following individuals without incurring a transfer penalty which…