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What is the Step-Up in Basis Rule in Illinois?
When someone passes away, anything they own can be passed down to heirs of their choosing. Their real estate, stocks, or other investments can all be included as part of an inheritance. While it is wonderful to leave assets behind for others, beneficiaries are sometimes left with a significant tax burden as a result.
The "step-up in basis" rule aims to help heirs so that they are not punished for being left with assets and property when a loved one passes away. It can make a big difference in estate planning, especially when families own homes, farms, or other valuable assets. To learn more about how the step-up in basis rule might apply to your situation, speak with a qualified Lombard, IL estate planning attorney.
What is "Basis" in Estate Planning?
To understand the step-up in basis rule, you first need to know what "basis" means. The basis is the original cost of a property or asset, including any improvements that have been made since it was purchased. For example, if you bought a house for $100,000 and later spent $50,000 on renovations, your basis in that house is $150,000. If you sell the house, you will owe taxes on the profit above the basis. If the house later sells for $300,000, the profit – or "capital gain" – is calculated based on the value you put into the house ($100,000 to buy it + $50,000 to renovate it = $150,000). The capital gain would be $150,000, and that is the amount subject to taxes.
Tax Considerations for Estate Planning in Illinois
Seniors wanting to ensure their loved ones are cared for and their assets are distributed according to their wishes should look into estate planning. While leaving clear instructions for how you want things addressed once you pass can give you a great deal of peace of mind, estate planning can have unexpected tax implications.
For example, certain strategies such as gifting or creating trusts can inadvertently trigger gift taxes or higher estate taxes. Failure to account for Illinois estate tax laws can also reduce the amount passed on to heirs. To learn more about how taxes could impact what you leave behind and those you leave it for, speak with a knowledgeable Lombard, IL estate planning lawyer.
How Do Federal Estate Taxes Work?
Estates that exceed a certain value are subject to federal estate taxes. As of 2024, that limit is $12.92 million per individual, something most people will not have to worry about. For those whose estate is worth more than that amount, anything exceeding that limit could be taxed at up to 40 percent, significantly reducing the amount that would be left.
Why Being Assigned a GAL Is Not Necessarily Cause for Panic
Sometimes, when parents are involved in a contentious Illinois custody dispute, the court will appoint a Guardian ad Litem (GAL) to help determine what is in the child’s best interest. Unfortunately, the role of a GAL is often misunderstood, causing worry and anxiety among parents who think it could be bad for their case.
The truth is that having a GAL involved does not mean that you are losing your case or will end up with an unfavorable outcome. In fact, a GAL can be a helpful part of the legal process, especially when the parents understand what it means and can approach this development with the right mindset. To learn more about the implications of having a GAL appointed to your case, speak with an experienced Lombard, IL custody lawyer.
I Was Falsely Accused of Parental Alienation. Now What?
Being falsely accused of committing parental alienation following a divorce can be extremely distressing. Parental alienation happens when one parent deliberately tries to damage a child’s relationship with the other parent. A parent can be left powerless to maintain a healthy relationship with his or her child if the other parent manipulates and undermines it.
Illinois courts take this seriously, and allegations can have severe consequences for the accused parent as well as the child. If you are falsely accused of parental alienation, speak with a skilled Lombard, IL family law attorney to understand how the legal system handles these claims and what steps you can take to protect your rights.
What is Parental Alienation?
The term "parental alienation" describes a situation where one parent deliberately tries to influence or manipulate the child to reject or alienate the other parent. This can be done through:
How Is Estate Planning Different for Blended Families?
Blended families, where one or both parents have children from a previous relationship, are not unusual in America. The unique dynamic between stepparents and stepchildren makes the distribution of assets after a family death less straightforward than it can be for traditional families. Ensuring that stepchildren are treated as fairly as biological children and that the surviving spouse’s rights are protected can be a challenge.
Without a clear estate plan, there can be a higher risk of confusion, disputes, or unintended disinheritance among family members. If you have a blended family and are thinking about what you want to leave behind for your loved ones, speak with a qualified DuPage County, IL estate planning lawyer who can help you draft a detailed plan.
Why Does Estate Planning Matter for Blended Families?
Estate planning involves decisions about what will happen to your money, property, and other belongings after your death. For blended families, it can be especially important to have all of this written down because children from previous relationships, a new spouse, and stepchildren might all have a claim to your assets.
Parental Disputes Over a Child’s Social Media Use
As technology advances and becomes more and more involved in daily life, it can be challenging for unmarried parents who disagree about how their child should use social media. One parent might have serious concerns about how social media could endanger their child’s well-being, and the other might be concerned that limiting the child’s freedom could harm the child as well.
When two parents feel passionately about different sides of an argument, it can be a recipe for disaster. If it feels like you and your ex are in an endless battle about your child’s social media use, speak with a skilled Lombard, IL joint custody attorney about ways to resolve it.
Joint Legal Custody and Parenting Plans
The majority of divorced parents in Illinois have some sort of joint legal custody arrangement. That means both parents get a say and need to agree on important decisions that can affect their child. Social media is one of the areas parents need to agree about. If one parent wants to give the child the freedom to make his or her own informed decision and the other wants to restrict social media use, this is a problem that needs to be resolved.
The Importance of a Digital Estate Plan in Illinois
As digital assets like social media profiles and cryptocurrency become more common, it is becoming more important to make arrangements for them in an estate plan. Illinois actually has laws that specifically address digital assets, but it is a fairly new aspect of estate planning. Many people fail to consider their digital portfolio, and this can create problems if beneficiaries cannot access online accounts or property. If you want to include your digital assets in your estate plans, speak with a knowledgeable Lombard, IL lawyer who can explain your options and offer relevant guidance.
What Are Digital Assets?
Any type of online property or content that someone owns or controls is considered a digital asset. Some of these are quite valuable. Common examples of digital assets include:
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Online accounts: Social media profiles, email accounts, and cloud storage accounts that could include personal files, photos, and documents are all digital assets that you can bestow on a beneficiary in your estate plan.
Serving Divorce Papers on a Spouse Living Abroad Under the Hague Service Convention
Increasingly, couples in the U.S. are a combination of spouses born in America and spouses born in another country. Divorce can be a complex process under the best circumstances, but when your spouse resides in another country, the steps involved in filing for divorce can be very difficult to handle by yourself..
If your spouse is living abroad and is in a country that is a signatory to the Hague Service Convention, there are specific international guidelines that must be followed for serving divorce papers. Fortunately, you do not have to figure out this complicated process on your own. An experienced Illinois family law attorney with A. Traub & Associates can help you manage every aspect of your divorce from start to finish, providing peace of mind during this challenging time.
What is the Hague Service Convention?
The Hague Service Convention is an international treaty established to streamline the process of serving legal documents across borders. It standardizes the way divorce papers and other legal documents are delivered to parties in foreign countries, ensuring they receive proper legal notice. With over 75 member countries, the Hague Service Convention outlines specific procedures that must be followed for service to be valid. Not following these steps can lead to delays and complications, potentially resulting in a requirement to restart the service process.
Illinois First Responders Face Additional Challenges When Getting Divorced
Illinois firefighters, police officers, and emergency medical caregivers are real-life superheroes who handle more than their fair share of challenges at work. Unfortunately, the unpredictable and demanding work schedule of these jobs also means that first responders often face additional challenges in their relationships. Emergency response employees have higher rates of divorce and, when they get divorced, they must deal with unique concerns as a result of their job. If you are a first responder and you are wondering if divorce is the right path forward for you, call our team of Illinois divorce attorneys who understand the unique issues you face and who are ready to help.
Why Are First Responders at Greater Risk of Divorce?
First responders are at higher risk of marital challenges because they work long hours, frequently face dangerous situations, observe traumatizing events, and often struggle with substance abuse and mental illness. In addition to the typical challenges a married couple deals with, these issues can be very difficult for the first responder and his or her spouse to manage.
Five Things to Do After a Parent Passes Away
On top of the grief of losing a parent, there are important legal and financial matters that need to be addressed. Unfortunately, managing a parent’s affairs while simultaneously grieving their loss can easily feel overwhelming. Taking things one step at a time can help, and an Illinois estate planning attorney can help. If you have recently lost a parent, here are five important things you should do after their passing to ensure everything is handled properly.
Get Copies of the Death Certificate
One of the first things you will need to do is get multiple copies of your parent’s death certificate. This document is crucial for handling many tasks, such as closing bank accounts, claiming life insurance, and transferring property. You can request death certificates from the funeral home or directly from the county clerk’s office where your parent passed away. It is a good idea to get at least 10 certified copies, as various institutions will require them to settle your parent’s affairs.
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