Posted on August 10, 2020 in Estate Planning

If you asked your children and grandchildren how they think you should divide your assets in your estate plan, you will almost certainly get many different answers. Some of your family might suggest dividing everything equally-most likely without any idea of how to figure out what constitutes "equally." Others might defer to you entirely since after all, it is your property that is being discussed.

Ironically, the people in your life who say that you should do what you want with your estate plan are likely to be the ones who get upset when they realize they did not receive the inheritance they expected upon your death. Fortunately, an experienced estate planning lawyer can provide the guidance you need to stop family fights about your estate plan before they even begin.

Decide on Your Priorities

According to the law in Illinois, you absolutely have the right to do whatever you wish with the assets and property that comprise your estate. However, it is a good idea for you to at least think about how your decisions are likely going to affect your surviving family members. You may reach the conclusion that you do not care who you upset with your choices since you will not be around to hear about it. Again, you have that right. On the other hand, it may be more important for you to take steps to promote family unity and stable relationships in the wake of your passing. There is a good chance that your estate planning choices could affect your family positively or negatively after your death. You should choose wisely.

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 Posted on July 31, 2020 in Estate Planning

A marriage can have a significant impact on your estate plan. Married couples generally create an estate plan together- all or most of the marital assets are typically passed onto the surviving spouse. Only when he or she passes does the estate plan take effect. However, this is not always the case, particularly if one of the spouses has children from a previous marriage, or if there is a large age difference between the spouses. Moreover, if you are in the middle of a separation or a divorce, which can take over one year to finalize in many cases, it can have a significant impact on how you should handle your estate planning.

How Marriage Impacts Estate Planning

Marriage makes it easier for you to leave assets to your spouse after death. Even if you fail to do any estate planning or create a will, Illinois intestate succession states that a spouse inherits all of the intestate property. If there are children, then the intestate property is split between the spouse and children 50/50.

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 Posted on July 29, 2020 in Divorce

Each week, month, and year, new social media trends get released and new platforms begin to surface. What was popular last week, may not mean much once another Monday rolls around. As smartphones and social media have become more integrated into our lives, it can be easy to forget that there are still personal boundaries when it comes to what should and should not be posted online. Studies have shown that social media content has affected people’s views on their relationships, including romantic ones, sometimes causing issues that could be mitigated without the high usage of social media. With Facebook’s option to list your relationship status, Instagram’s ability to post photos with your new significant other, and Twitter’s propensity to elicit Tweets venting about your ex, your social media posts can greatly impact your Illinois divorce.

Using Your Spouse’s Posts to Your Advantage

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 Posted on July 23, 2020 in Estate Planning

When considering estate planning, it is wise to have some of your assets set aside as liquid assets. Liquid assets are easily turned into cash, the most obvious form being a checking or savings account. Mutual funds, stocks, and money market assets are also considered to be liquid. Non-liquid assets include physical property, which can take months to sell, or ownership in a company.

Immediate Access to Liquid Funds After Your Death

There are specific expenses that will come up very quickly after your death and your survivors may or may not be prepared to pay for these costs without using the funds from your estate. These costs may include:

• Funeral and Burial Costs - According to Lincoln Heritage Funeral Advantage, the average funeral costs between $7,000 and $12,000. Even a cremation can cost $6,000 to $7,000.

• Taxes - Aside from the final individual income taxes that will be due on April 15 after a person dies, there will be federal and state estate taxes to pay as well. The Internal Revenue Service (IRS) can cease the distribution of assets during an audit. If there is a gross misrepresentation of income in a return, the IRS can audit a return up to six years later. If there is evidence of fraud or of trying to evade taxes, the IRS can conduct an audit at any time, even decades later. It is crucial to ensure that your loved ones have enough liquid assets to cover your income taxes for the tax year in which you pass.

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 Posted on July 22, 2020 in Maintenance

Many divorce settlements include terms for spousal support, where one former spouse provides financial support to the other until they can fully support themselves. Spousal support, also known as alimony or spousal maintenance, can be made in regular payments or a lump sum. The terms, either agreed to in mediation or ordered by a judge, are legally binding. There are a few ways that a court will enforce a failure to adhere to your alimony payment schedule. If your ex falls behind on spousal maintenance payments, contact a divorce attorney before acting.

Enforcing Court-Ordered Spousal Support

Before bringing your case to court, you should try to communicate with your ex-spouse to find out if there are any circumstances preventing him or her from making payments. Common reasons include the recent loss of a job, illness, and injury. If your former spouse is willing to cooperate, you can form an agreement until he or she is capable of catching up with the payments. For instance, you both could suspend alimony payments until the paying-spouse returns to work. You should have an attorney draft this agreement. Informal contracts can lead to misunderstandings and difficulties in court if you need to opt for that route.

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 Posted on July 20, 2020 in Estate Planning

With coronavirus hitting the United States hard, many people are realizing the importance of estate planning. Not only are people worried about their financial future, but they are also concerned about what would happen if they became gravely ill from COVID-19. Luckily, Governor Pritzker determined at the beginning of the pandemic that legal services were still an essential business in Illinois. There is no better time to consider what will happen to your assets after death. Moreover, it is extremely important to get your affairs in order so that your children and grandchildren are properly taken care of.

What Happens to the Home?

Having a will and testament is not enough to keep your property out of probate, which is a long and costly process. Furthermore, if you do not designate beneficiaries and complete the proper legal paperwork to transfer your property after your death, it is possible that any family members who live with you could lose their home. One way to ensure your family stays in your home after your death is by setting up a transfer on death instrument which allows you to designate a beneficiary who will receive interest on the property and avoid probate. Other options include creating a living trust, joint tenancy, or life estate. A knowledgeable estate planning attorney can guide you through which option is best for you and your family.

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 Posted on July 20, 2020 in Wills and Trusts

Generation-skipping trusts, also known as dynasty trusts, are a way of avoiding estate taxes on an individual’s property and assets after death. It is a legally binding agreement that skips the children’s generation and leaves the inheritance to the grantor’s grandchildren to avoid an estate being taxed twice. With a generation-skipping trust, the children can still access the funds to pay for education, health, maintenance, and support, but upon their death, it automatically goes to their children. Generation-skipping trusts are a type of irrevocable trust, which means they cannot be changed or canceled. For this reason, it is wise to speak with a knowledgeable estate planning attorney who can assist in creating the trust before attempting to do so yourself.

Who Can Be the Beneficiaries?

The fact that this type of trust is called a generation-skipping trust leads many people to believe that the only beneficiaries can be grandchildren. However, the trust can be set up for anyone who is 37.5 years younger than the grantor. If the beneficiary is not a relative, he or she is called a "skip-person." According to Internal Revenue Code 2651, if the parents die before the grandchild, then the grandchild moves into his or her parent’s place in line and a generation-skipping trust is no longer applicable to them.

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 Posted on July 15, 2020 in Child Support

A divorce involves many issues that need resolving, especially when children are involved. When determining child support, the financial status of both parents is seriously considered. If the non-custodial parent is providing support, the child’s medical expenses may cause an additional financial burden. These additional expenses could cause the judge to lessen the amount of support given to the custodial parent. Whether you are the non-custodial or the custodial parent, it is important to consult with a skilled family law attorney if you have any questions or concerns regarding your child support payments.

Determining Support

Child support calculations can be incredibly complex. Within the state of Illinois, child support payments are usually paid by the non-custodial parent to the custodial parent to provide additional financial support for the child’s basic needs such as food and clothing. Payments can also be used to fund tuition, transportation, housing expenses, extracurricular activities, and medical care costs. These factors, as well as the net income of both parents, will be used to determine the amount of support the custodial parent will receive from the non-custodial parent.

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 Posted on July 08, 2020 in Divorce

Although it is not pleasant to think about right before your wedding, a good number of marriages will end in divorce. Because of this reality, planning for that possibility could save you a lot of trouble in the future. Of course, if you and your soon-to-be spouse never end up separating, your prenuptial agreement (prenup) will not weigh you down in any way. However, if you do file for divorce and do not have a prenup, settling the terms of your separation will be a lot more difficult than it needed to be.

What Can a Prenuptial Agreement Do for My Marriage?

The basic idea of a prenuptial agreement is to decide, in advance, how a couple will divide property and assets upon their divorce. Although you create a prenup before marriage, it does not take effect until the date that you get married. If you end up in court for divorce litigation without a prenup, a judge can decide how to divide your assets between you and your spouse.

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 Posted on July 08, 2020 in Divorce

During a divorce, one or both spouses may seek counseling or therapy. Due to the universal Doctor-Patient Confidentiality Agreement, patients are reassured that the sessions are private. However, it is possible your therapy records could end up in the courtroom during your divorce proceeding. When this occurs, it is important to hire a family law attorney to protect your rights.

Record Contents

Typically, if you are attending therapy or seeking the help of a professional counselor, you may have overwhelming issues that affect you psychologically and hinder your daily activities. Discussing them with an unbiased individual can be comforting and allow you to process your emotions. Problems may involve alcohol/drug addiction, a tragic event, or mental health issues. Within a divorce proceeding, these issues may negatively affect spousal support, and/or the allocation of parental responsibilities.

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