Recent Blog Posts
What You Should Know About Reverse Mortgages, Part 2
Recently, a previous post on this blog discussed the definition and some of the possible benefits of reverse mortgages. In that article, we talked about how reverse mortgages are often taken out by seniors to supplement their retirement income by borrowing against the equity they have built in their homes. In many situations, a reverse mortgage may be an appropriate option, but it is important to consider that reverse mortgages could also have some disadvantages—including an impact on the assets passed down to a person’s heirs.
Unforeseen Costs
The entire point of a reverse mortgage is to give an elderly person—62 is the minimum qualifying age—access to additional money during his or her lifetime. The amount a person can borrow in reverse mortgage is dependent on a number of factors including the type of reverse mortgage, the borrower’s age, the value of the home, and interest rates. Of course, in most cases, the lender will also apply a number of costs and fees, including an origination fee, costs at closing, and servicing fees for the life of the loan. Some lenders also charge for mortgage insurance premiums for certain reverse mortgages.
Out of State Relocation and Child Custody
People do not stay in one place as often as they once did. With the global economy entirely interconnected and the job market in a seemingly constant state of flux, family moves are more common. However, so are divorces. In Illinois, the laws regarding the allocation of parental responsibilities—formerly called child custody—provide requirements that must be met before children can be moved a significant distance from their current home.
A Child’s “Home State”
For the purposes of parenting plans, a child must have a “home state.” This is the state in which a court would have jurisdiction to decide cases involving the child. Illinois is a child’s home state when (1) that child has lived in Illinois for six months (or since birth, if the child is not six months old yet), and (2) the child has no other home state, and/or the child (or their parent) has significant connections to the state. If a parent intends to move to another state and take their child with them, the child’s home state will change.
What You Should Know About Reverse Mortgages, Part 1
If you watch television at certain times of the day, you are likely to see occasional advertisements for reverse mortgages. These ads often run in similar timeslots as commercials for arthritis medication and electric scooters. It is clear that they are intended to reach a certain demographic—namely, seniors who are starting to consider the reality that they will not live forever. As with most television pitches, it understandable that the audience would be skeptical, but a reverse mortgage may be an option for certain individuals and families.
Reverse Mortgages Defined
Most people understand that a standard mortgage is a financial arrangement in which a lender provides a borrower with money to buy real estate, including a home. The property itself is the collateral used to secure the loan. The borrower makes regular installment payments until the amount borrowed and any accumulated interest is repaid.
Could There Be a Genetic Component to Divorce?
For years, scientists have known that children of divorced parents are more likely to get divorced as adults. People have speculated that this was because children spend time with their divorced parents during their formative years and therefore grow up to have a similar lifestyle. However, a new study suggests that genetics may play a role in whether children grow up to get divorced or not.
The study was conducted by Virginia Commonwealth University and published in the journal Psychological Science. It examined data regarding divorce in adopted children and children who grew up around their biological parents. The study’s findings showed that children who did not grow up knowing their biological parents and siblings still had a tendency to match their biological family’s decisions regarding divorce. The adopted children were less likely to have similar histories of divorce as their adoptive parents. This could mean that many of the choices we make about our relationships as adults are influenced by our DNA. When it comes to divorce, nature may be a stronger factor than nurture.
New Federal Law Aimed at Protecting Seniors
Older men and women are often among the most vulnerable members of our society. Children, of course, are also vulnerable, but as a whole, we have been historically more likely to aggressively protect children than adults and seniors. Unfortunately, this means that is relatively easy for elder men and women to be exploited—often by those who have been entrusted with guardianship or other responsibilities. With proper estate planning that includes contingency clauses and protections, it may be possible to reduce the likelihood of such abuse. A new federal law will also provide additional help in the battle against elder abuse and exploitation.
Bipartisan Efforts
The Elder Abuse Prevention and Protection Act was drafted by Representative Elizabeth Esty, a Democrat from Connecticut, and Representative Barbara Comstock, a Virginia Republican. The bipartisan measure passed the House and Senate and was signed into law by President Donald Trump earlier this month.
New Child Support Law Now in Effect
Until just a few months ago, Illinois courts calculated child support as a percentage of the income of the parent with fewer parental responsibilities—referred to in the past as the non-custodial parent. Since July 1, 2017, however, a new law has brought child support guidelines in Illinois up to date with modern trends and started improving the lives of all parties involved.
The Old Child Support Law
The previous law in Illinois has long been criticized for being inequitable, with not enough potential exemptions taken into account, and an alleged unfair burden on the non-custodial parent. Under the old guidelines, there were two primary factors in determining the amount of support to be paid: the income of the non-custodial parent and the number of children to be supported.
Critics found this unfair not only because not enough exemptions were taken but also because, in some situations, it effectively punished a supporting parent financially for spending time with his or her child. For example, if a father was the party paying support for two children, he would have paid 28 percent of his net income regardless of how much parenting time he enjoyed. If he had a substantial amount of parenting time, he would likely spend more money on the children while they were in his care, in addition to providing for basic needs like beds, bedding, and food. However, he would still be required to pay the same amount of child support as he would have with little to no parenting time.
Understanding Powers of Attorney
Estate planning can be a difficult task for many individuals. Rare is the person who is excited about confronting his or her own mortality. The reality is that none of us will live forever, and estate planning affords us the opportunity to provide for our family members and loved ones well beyond our lifetime. Some elements of estate planning, however, are intended to take effect, if necessary, while you are still living so that your affairs can be properly managed, no matter what happens to you. Powers of Attorney are among the most important estate planning instruments, but they are often overlooked by those who are unfamiliar with their application.
Two Types
There are two different kinds of Powers of Attorney (POA): Power of Attorney for Property and Power of Attorney for Health Care. The two categories refer to the subject matter covered by the document, but both types give a trusted friend or family member the authority to make decisions for you in the event you are not able to make them for yourself. As their names imply, a POA for Property gives your chosen individual or entity—known as an agent—the power to make decisions regarding your finances, assets, and debts while a POA for Health Care appoints an agent to make medical and health-related decisions. By using POAs properly, you can help protect your family from uncertainty and unnecessary costs associated with guardianship proceedings.
Preparing Your Home for Comfortable, Safe Aging
When most people think about estate planning, they often focus the transfer of assets from one generation to the next. Wills and trusts—the most common vehicles for transferring such assets—represent a significant part of the estate planning process, but there are many other considerations that should be addressed. One of the most often overlooked aspects of estate planning is preparing yourself and your home to make life easier as you age, and doing so often takes time, money, and self-awareness regarding your current and possible limitations.
A Glaring Need
According to the Pew Research Center, an estimated 12 million Americans over the age of 65 live alone. A disproportionate 69 percent of that number—nearly 8.3 million—are women. While independence among senior citizens is often a desirable alternative to assisted living or nursing facilities, the reality is that a home that is suitable for a healthy, able-bodied adult may not be convenient or safe for an aging senior.
Unique Considerations in a Military Divorce
Divorce is extremely common, and sometimes, it can come at an inopportune time. Nowhere is this more apparent than in the case of military families, when essentially, there is no “good” time unless the person with a military career is essentially retired. To help military couples obtain a divorce in an amicable fashion without having to wait years, there are certain specific divorce laws that apply only to them.
Service and Timing Issues
The main issues in trying to obtain a divorce from an active duty military member are personal service and the possibility of default. A divorce can be filed in Illinois if one or both spouses either live in state permanently, or if one or both spouses are stationed in the state. However, in any contested divorce, the non-moving party must be served personally with a copy of the petition filed by their spouse. Otherwise the court, in theory, has no jurisdiction over them. In other words, without personal service, the military member would not have enough contact with the place where the court is for that court to have any power over him or her. If the divorce is not contested, personal service may be waived, but if it is contested, the rule is absolute. This means that the personal service requirement can make going forward with the divorce very difficult if the military member is overseas or in a war zone.
Second Parent Adoption
Same-sex marriage is now legal in all 50 states, with all the attendant rights and responsibilities that marriage entails. Parenting for same-sex couples can be tricky, however, as certain legal issues are likely to arise. Fortunately, the state of Illinois has measures in place to help same-sex parents obtain and exercise parental rights in variety of situations. One such option is a second parent adoption, or SPA.
SPA Defined
Second parent adoption is defined as an adoption in which a second parent may adopt a child without the first losing any parental rights. Normally, adoptions require a parent to renounce his or her parental rights—or to have them terminated—in favor of another caregiver, but SPA allows both caregivers to have legal rights regarding the child.
This can be critical in the case of something like a change in the law, or an accident that leaves one parent or the child incapacitated in some way. If both halves of the couple are the legal parents of the child, it can prevent most potential battles over competence and jurisdiction. For example, if only a child’s biological mother is their legal parent, the mother’s same-sex partner has no legal authority to make decisions for the child. In extreme circumstances, this could even lead to the child being removed from their home if the legal parent is deceased or disabled.
© 2024 A. Traub & Associates 200 W. 22nd Street, Suite 210, Lombard, IL 60148630-426-0196
Disclaimer | Resources Privacy Policy | Sitemap Arlington Heights Divorce Lawyer Mediation
