An Irrevocable Live Insurance Trust (hereinafter called an "ILIT") is a type of trust that may not be altered, changed, or amended. In many people's estate, life insurance is the bulk of assets and therefore, the best option is to create an ILIT to shelter the life insurance proceeds from being counted in one's estate value. Thus, the purpose of an ILIT is estate tax avoidance. In 2009, the estate tax had a forty-five (45) percent highest tax rate. In 2010, the estate tax rate is zero because there is currently no estate tax. However, in 2011, the estate tax if unchanged will kick back to $1 million as the estate tax exemption with the highest tax rate at fifty-five (55) percent. There is an additional benefit to an ILIT. For asset protection purposes, the life insurance and cash value is untouchable by creditors unless it is considered a fraudulent transfer.
A fraudulent transfer is a transfer designed to deter, defraud, or delay the payment of a judgment owed to creditors. The best time to set up an ILIT is prior to any claims being imagined or filed against you.
Robertson Law Group, LLC
630-364-2318 or 312-498-6080
RobertsonLawGroup@gmail.com
Key words: Life insurance, estate planning, wills, living trusts, revocable living trusts, naperville, lisle, plainfield, bolingbrook, cash value life insurance, asset protection.
Tuesday, March 23, 2010
Saturday, March 20, 2010
Wills and Living Trusts Common Questions
What are common questions about Wills and Living Trusts?
What is a Will?
Simply put, a will is a written agreement that distributes your property upon your death and you also may name a guardian for your children in a Will. It is not intended to take place during your life, but it is a post-death legal document.
What is a Living Trust?
A Living Trust is a legal document that creates a seperate entity outside of your personal name and distributes your property upon a death or incapacity. Unlike a Will, a Living Trust does not go through the pain of probate court if structured the correct way. Structured the correct way means that your title to your property is titled in your Revocable Living Trust's name. A Living Trust is also intended to be a document that is designed to address an incapacity and avoid guardianship court. Guardianship court is a court where an adult disabled person lacks the sufficient understanding to make healthcare and financial decisions for themselves.
What is a Power of Attorney for Property? A Power of Attorney for Property is a legal document where you appoint somebody to make healthcare decisions for you in case you cannot make those decisions yourself.
What is a Power of Attorney for Healthcare? A Power of Attorney for Healthcare is a legal document where you appoint somebody to make healthcare decisions for yourself if you cannot make those decisions yourself.
How Can I Distribute My Estate Where My In-laws Cannot Touch My Children's Inheritance?
Unlike a Will, a beneficiary receiving an inheritance can have a spendthrift provision in a Living Trust, which protects the beneficiary from a divorcing spouse or creditors. Hence, with a Will, if your children go through a divorce proceeding, the inheritance is considered for divorce purposes. This is not true with a Revocable Living Trust.
What Happens If I own Real Estate In More Than One State? A probate proceeding must be established in every state where you own real estate. Generally, after both parent(s) have deceased, probate is necessary to determine who is the rightful heir. Probate is a court that determines whether there was a valid will or any other document that legally distributes a decedent's property upon their death (i.e. beneficiary designated life insurance policy).
How Long Does Probate Take and How Expensive Is It? Generally, probate takes a minimum of six (6) months to two (2) years in the State of Illinois. Probate has a costs of around $3,000 to $10,000 in legal fees, surety bond fees, and other court costs. There are several factors that increase the costs such as whether there is a will contest, the complexity and assets involved, and whether there are any minor children receiving an inheritance.
Robertson Law Group, LLc
Offices in Naperville, Chicago Ridge, and downtown Chicago
630-364-2318 or 312-498-6080
RobertsonLawGroup@gmail.com
www.RobertsonLawGroup.com
Key words: Naperville, Lisle, Downers Grove, Aurora, Montgomery, Bolingbrook, Joliet, Romeoville, and Plainfield.
What is a Will?
Simply put, a will is a written agreement that distributes your property upon your death and you also may name a guardian for your children in a Will. It is not intended to take place during your life, but it is a post-death legal document.
What is a Living Trust?
A Living Trust is a legal document that creates a seperate entity outside of your personal name and distributes your property upon a death or incapacity. Unlike a Will, a Living Trust does not go through the pain of probate court if structured the correct way. Structured the correct way means that your title to your property is titled in your Revocable Living Trust's name. A Living Trust is also intended to be a document that is designed to address an incapacity and avoid guardianship court. Guardianship court is a court where an adult disabled person lacks the sufficient understanding to make healthcare and financial decisions for themselves.
What is a Power of Attorney for Property? A Power of Attorney for Property is a legal document where you appoint somebody to make healthcare decisions for you in case you cannot make those decisions yourself.
What is a Power of Attorney for Healthcare? A Power of Attorney for Healthcare is a legal document where you appoint somebody to make healthcare decisions for yourself if you cannot make those decisions yourself.
How Can I Distribute My Estate Where My In-laws Cannot Touch My Children's Inheritance?
Unlike a Will, a beneficiary receiving an inheritance can have a spendthrift provision in a Living Trust, which protects the beneficiary from a divorcing spouse or creditors. Hence, with a Will, if your children go through a divorce proceeding, the inheritance is considered for divorce purposes. This is not true with a Revocable Living Trust.
What Happens If I own Real Estate In More Than One State? A probate proceeding must be established in every state where you own real estate. Generally, after both parent(s) have deceased, probate is necessary to determine who is the rightful heir. Probate is a court that determines whether there was a valid will or any other document that legally distributes a decedent's property upon their death (i.e. beneficiary designated life insurance policy).
How Long Does Probate Take and How Expensive Is It? Generally, probate takes a minimum of six (6) months to two (2) years in the State of Illinois. Probate has a costs of around $3,000 to $10,000 in legal fees, surety bond fees, and other court costs. There are several factors that increase the costs such as whether there is a will contest, the complexity and assets involved, and whether there are any minor children receiving an inheritance.
Robertson Law Group, LLc
Offices in Naperville, Chicago Ridge, and downtown Chicago
630-364-2318 or 312-498-6080
RobertsonLawGroup@gmail.com
www.RobertsonLawGroup.com
Key words: Naperville, Lisle, Downers Grove, Aurora, Montgomery, Bolingbrook, Joliet, Romeoville, and Plainfield.
Saturday, March 13, 2010
What Happens When One Spouse Dies With or Without a Will?
Today, I received a phone call from a widow because she received a payment of $800 as a refund. What is the problem? The refund check is in her husband's name, who is deceased. Her question was what do I do? If your loved one has under $100,000 in personal assets such as in a bank account, stocks, or bonds, than your estate can fill out a Small Estate Affidavit. This Small Estate Affidavit enables your beneficiaries to access their inheritance without going through probate court. In many cases, this is not a viable option because the person owned real estate.
Probating Real Estate or Not?
When the first spouse dies, living spouses often times do not think about changing their real estate deeds to reflect that one spouse is deceased. In my prospect's example, her simple question about a $800 refund was really a question of whether we must establish a probate estate or will a simple small estate affidavit be sufficient? In her case, her and her husband's name were titled in both of their names as "Joint Tenants". In Illinois, Joint Tenants is a way of owning real estate with your spouse where as if one spouse deceases, the other spouse's one-half interest immediately transfers to the surviving spouse. Thus, in our example, my prospect must not undergo probate court because as a matter of law, she owns her home in her personal name only due to Joint Tenancy with Right of Survivorship. Therefore, automatically upon her husband's death, his interest was transferred to her.
What happens when Surviving Spouse dies?
The children, brothers, or sisters must probate the house and hire an attorney and undergo a legal process called probate court. Probate court is a court that hears inheritance issues such as who is the rightful owner of the parent's home when a will was not made. In Illinois, when one does not complete a will, the property must go through probate court and Illinois law assumes that the surviving spouse (if any) gets one-half of the property and the children will split the other one-half of property. If there is no surviving spouse like our example above, than all the children will split the profits equally.
How Much Does Probate Costs?
The answer depends on the complexity of the family relationships and whether the family gets along with one another. A typical probate estate may costs from $3,000 to $6,000 or more depending on the assets and nature of the probate estate case. The fees are generally around $600 to $1,000. Obviously, if any issue such as heirship is contested, a probate estate may costs in excess of $15,000 to $100,000s in attorney's fees and costs.
This Article is written by Sean L. Robertson, an attorney that concentrates in wills, trusts, probate, guardianship, corporate and asset protection law. Simply put, Sean is an estates and trusts and corporate attorney.
Sean L. Robertson, Esq.
Robertson Law Group, LLC
Offices in Naperville, Chicago Ridge, and Naperville
630-364-2318 or 312-498-6080
RobertsonLawGroup@gmail.com
Key words: Chicago Ridge, Chicago, Southside of Chicago, Joliet, Will County, Oak Lawn, Bridgeview, South Loop (Chicago), Homer Glen, New Lenox, Orland Park, Wills, Trusts, Probate, Power of Attorney (Property & Healthcare), Naperville, Lisle, Downers Grove, Woodridge, Aurora, Montgomery, Sugar Grove, and Plainfield.
Probating Real Estate or Not?
When the first spouse dies, living spouses often times do not think about changing their real estate deeds to reflect that one spouse is deceased. In my prospect's example, her simple question about a $800 refund was really a question of whether we must establish a probate estate or will a simple small estate affidavit be sufficient? In her case, her and her husband's name were titled in both of their names as "Joint Tenants". In Illinois, Joint Tenants is a way of owning real estate with your spouse where as if one spouse deceases, the other spouse's one-half interest immediately transfers to the surviving spouse. Thus, in our example, my prospect must not undergo probate court because as a matter of law, she owns her home in her personal name only due to Joint Tenancy with Right of Survivorship. Therefore, automatically upon her husband's death, his interest was transferred to her.
What happens when Surviving Spouse dies?
The children, brothers, or sisters must probate the house and hire an attorney and undergo a legal process called probate court. Probate court is a court that hears inheritance issues such as who is the rightful owner of the parent's home when a will was not made. In Illinois, when one does not complete a will, the property must go through probate court and Illinois law assumes that the surviving spouse (if any) gets one-half of the property and the children will split the other one-half of property. If there is no surviving spouse like our example above, than all the children will split the profits equally.
How Much Does Probate Costs?
The answer depends on the complexity of the family relationships and whether the family gets along with one another. A typical probate estate may costs from $3,000 to $6,000 or more depending on the assets and nature of the probate estate case. The fees are generally around $600 to $1,000. Obviously, if any issue such as heirship is contested, a probate estate may costs in excess of $15,000 to $100,000s in attorney's fees and costs.
This Article is written by Sean L. Robertson, an attorney that concentrates in wills, trusts, probate, guardianship, corporate and asset protection law. Simply put, Sean is an estates and trusts and corporate attorney.
Sean L. Robertson, Esq.
Robertson Law Group, LLC
Offices in Naperville, Chicago Ridge, and Naperville
630-364-2318 or 312-498-6080
RobertsonLawGroup@gmail.com
Key words: Chicago Ridge, Chicago, Southside of Chicago, Joliet, Will County, Oak Lawn, Bridgeview, South Loop (Chicago), Homer Glen, New Lenox, Orland Park, Wills, Trusts, Probate, Power of Attorney (Property & Healthcare), Naperville, Lisle, Downers Grove, Woodridge, Aurora, Montgomery, Sugar Grove, and Plainfield.
Wednesday, March 10, 2010
Asset Protection and LLCs-Naperville
Yesterday, I spoke with a lady that had investment real estate property that was in her personal name. I often see this. Your investment real estate properties should be in a Limited Liability Corporation (LLC). In Illinois, the preferred structure is to combine a Land Trust, which protects you against liens and judgments, with an LLC. An LLC is a business entity that is a fictional person created under law that seperates your personal and business assets. The purpose behind an LLC is to insulate your personal assets from liability exposures such as a porch collapse, a slip and fall, or any other accident. Furthermore, anybody with teenage children should be very concerned with asset protection. Your teenage children could have friends over and an accident occurs. Teenagers have a strange way of finding trouble.
Enough for this morning, I am off to the Woodridge Chamber of Commerce Coffee Connection this morning. Have a great day all!
Yours,
Sean Robertson
Robertson Law Group, LLC
630-364-2318 or 312-498-6080
RobertsonLawGroup@gmail.com
www.RobertsonLawGroup.com
Key words: Woodridge, Naperville, Asset Protection, LLCs, Teenagers, slip and fall, porch collapse, liability protection
Enough for this morning, I am off to the Woodridge Chamber of Commerce Coffee Connection this morning. Have a great day all!
Yours,
Sean Robertson
Robertson Law Group, LLC
630-364-2318 or 312-498-6080
RobertsonLawGroup@gmail.com
www.RobertsonLawGroup.com
Key words: Woodridge, Naperville, Asset Protection, LLCs, Teenagers, slip and fall, porch collapse, liability protection
Tuesday, March 9, 2010
Guardianship for Minors and Wills
Guardianship is the type of court that addresses minors and adult disabled person's concerns such as who is responsible for managing their money and who is responsible for managing their healthcare. Guardianship provision is important in a Will or Trust. This guardianship provision makes sure that the parents choose a proper guardian in case of their death. Typically, a Will or Trust combines with a power of attorney for property and healthcare. The purpose of a power of attorney for healthcare and property is in case healthcare or property decisions need to be made in case of an incapacity.
Therefore, guardianship for minors and adults is an important reason to draft a Will or Trust.
Robertson Law Group, LLC
630-364-2318 or 312-498-6080
RobertsonLawGroup@gmail.com
www.RobertsonLawGroup.com
Locations in Naperville, Chicago Ridge, and downtown Chicago
Therefore, guardianship for minors and adults is an important reason to draft a Will or Trust.
Robertson Law Group, LLC
630-364-2318 or 312-498-6080
RobertsonLawGroup@gmail.com
www.RobertsonLawGroup.com
Locations in Naperville, Chicago Ridge, and downtown Chicago
Wednesday, March 3, 2010
Land Trusts and Asset Protection in Naperville
Yesterday, I received a phone call because a couple used to have a land trust and sold their home and let it lapse. A land trust is a legal strategy where a company holds legal title to your home such as Chicago Title Land Trust Company. Thus, it appears on the recorder's records that your home is owned by Chicago Title Land Trust Company, Trust # 8002351742. The real owner's name is secret and is not publicly available. The real owner signs a Trust Agreement with Chicago Title Land Trust Company where they designate who should be the beneficiary and contingent beneficiary upon their death. Hence, a land trust is good for simple estate planning purposes as well.
The key advantages to a land trust is privacy and liens and judgments do not attach to a land trust. This is good today because many families have foreclosures and credit card debts that they cannot pay. Eventually, their credit card companies and old banks will harass them for payment and some, will sue the debtors (the customers). A judgment will be placed on their homes and on their credit. Asset protection is a legal strategy designed to protect one's investments such as their home, bank accounts, business ownership, and other assets. At Robertson Law Group, LLC, we concentrate in Estate and Asset Protection. We can be reached at 630-364-2318 or 312-498-6080.
Sean Robertson, Attorney at Law
Robertson Law Group, LLC
630-364-2318 or 312-498-6080
RobertsonLawGroup@gmail.com
www.RobertsonLawGroup.com
The key advantages to a land trust is privacy and liens and judgments do not attach to a land trust. This is good today because many families have foreclosures and credit card debts that they cannot pay. Eventually, their credit card companies and old banks will harass them for payment and some, will sue the debtors (the customers). A judgment will be placed on their homes and on their credit. Asset protection is a legal strategy designed to protect one's investments such as their home, bank accounts, business ownership, and other assets. At Robertson Law Group, LLC, we concentrate in Estate and Asset Protection. We can be reached at 630-364-2318 or 312-498-6080.
Sean Robertson, Attorney at Law
Robertson Law Group, LLC
630-364-2318 or 312-498-6080
RobertsonLawGroup@gmail.com
www.RobertsonLawGroup.com
Tuesday, March 2, 2010
Business Succession Planning and Wills and Trusts
Robertson Law Group, LLC is a wealth preservation law firm concentrating in corporate, estate and business planning, and asset protection law. We also practice in the area of commercial litigation with a concentration in working with new and distressed businesses. We help distressed businesses defend breach of contract lawsuits and provide asset protection advice for the business and shareholder and/or owners.
We assist small businesses to incorporate their businesses and draft and counsel small business clients on S corporations, Partnerships, and LLCs. Because we concentrate in asset protection, this is our primary area of expertise. Often times, business owners are improperly structured for growth and liability purposes. We can assist you in buying and selling a business. We can also counsel and draft wills, trusts, and business related documents that protect you, your family, and your business assets. Business transfer and succession planning are critical.
Small Business Law
Drafting and counseling business clients on entity selection;
Drafting LLCs, Partnerships, and S corporations;
Buy sell agreements;
Non-compete agreements and bonus plans;
Business tax planning advice.
Wills, Trusts, Powers of Attorney, and Estate Planning
Drafting Wills, Living Trusts, Irrevocable Trusts;
Powers of Attorney for Property and Healthcare;
Special Needs Planning including OBRA Trusts and Third Party Trusts;
Medicaid planning
Asset Protection and Lawsuit Protection
Drafting Family LLCs and Partnerships for Asset Protection;
Planning against lawsuits and judgments;
Protection of family, vacation, and investment properties along with business assets;
Exemption Planning such as Homestead Exemption Planning, Personal Property exemption planning, and Citations to Discover Assets;
Citation to Discover Assets and Rules to Show Cause Court Proceedings
Defending Breach of Contract and Collection's Matters.
Sean Robertson graduated from DePaul University College of Law in 2003 while working full-time as a paralegal at Katz, Friedman, Eagle, Eisenstein, et al. Sean received his bachelor of science degree from University of Illinois at Urbana-Champaign in political science. Sean is married to Brenda Robertson and lives in Naperville, Illinois. Sean is a member of the Illinois State Bar Association and Chicago Bar Association and Leading the Way-Naperville Leads Group. Sean can be reached at 630-364-2318 or 312-498-6080. Sean also can be reached via RobertsonLawGroup@gmail.com or www.RobertsonLawGroup.com.
Keywords: Naperville business attorney, Lisle, Downers Grove, Plainfield, Entrepreneurial Attorney, Asset Protection, Wills and Trusts, Estate Planning, LLC Attorney, Incorporation Attorney, Powers of Attorney-Dupage County, Western Suburbs-Wills and Trusts
We assist small businesses to incorporate their businesses and draft and counsel small business clients on S corporations, Partnerships, and LLCs. Because we concentrate in asset protection, this is our primary area of expertise. Often times, business owners are improperly structured for growth and liability purposes. We can assist you in buying and selling a business. We can also counsel and draft wills, trusts, and business related documents that protect you, your family, and your business assets. Business transfer and succession planning are critical.
Small Business Law
Drafting and counseling business clients on entity selection;
Drafting LLCs, Partnerships, and S corporations;
Buy sell agreements;
Non-compete agreements and bonus plans;
Business tax planning advice.
Wills, Trusts, Powers of Attorney, and Estate Planning
Drafting Wills, Living Trusts, Irrevocable Trusts;
Powers of Attorney for Property and Healthcare;
Special Needs Planning including OBRA Trusts and Third Party Trusts;
Medicaid planning
Asset Protection and Lawsuit Protection
Drafting Family LLCs and Partnerships for Asset Protection;
Planning against lawsuits and judgments;
Protection of family, vacation, and investment properties along with business assets;
Exemption Planning such as Homestead Exemption Planning, Personal Property exemption planning, and Citations to Discover Assets;
Citation to Discover Assets and Rules to Show Cause Court Proceedings
Defending Breach of Contract and Collection's Matters.
Sean Robertson graduated from DePaul University College of Law in 2003 while working full-time as a paralegal at Katz, Friedman, Eagle, Eisenstein, et al. Sean received his bachelor of science degree from University of Illinois at Urbana-Champaign in political science. Sean is married to Brenda Robertson and lives in Naperville, Illinois. Sean is a member of the Illinois State Bar Association and Chicago Bar Association and Leading the Way-Naperville Leads Group. Sean can be reached at 630-364-2318 or 312-498-6080. Sean also can be reached via RobertsonLawGroup@gmail.com or www.RobertsonLawGroup.com.
Keywords: Naperville business attorney, Lisle, Downers Grove, Plainfield, Entrepreneurial Attorney, Asset Protection, Wills and Trusts, Estate Planning, LLC Attorney, Incorporation Attorney, Powers of Attorney-Dupage County, Western Suburbs-Wills and Trusts
Monday, March 1, 2010
Wills, Living Trusts, and Family Conflict-Naperville
Today's post is simple. I will quickly compare and contrasts wills and living trusts in relationship with family conflict.
Wills and Family Conflict
Wills are simply a written contract that is witnessed by two uninterested witnesses that takes affect upon death. With wills, wills must go through a court process called "probate court". Probate court is the court which administers inheritance issues and determines who is/are the rightful heir of somebody's assets. In my opinion, wills are more often to involve family conflict.
Why? Wills require an executor to mail out notices (often certified notices) to potential heirs. In many instances, an heir is unhappy that a loved one disinherited them or gave them a disproportionate small share of their estate. Last night, I spoke with a lady that has a probate proceeding in Florida. The initial upfront retainer was $3,000 prior to commencing the probate process. Simply put, probate and wills increase family conflict because probate court encourages conflicts to get disputed and resolved. In many cases, potential heirs hire attorneys that find innovative ways to challenge and contest the validity of the will. Often times, wills are done in hospitals, through online services, and while one has an illness such as cancer. This immediately raises suspicions and seldom do non-estate planning attorneys or lay persons plan for the potential conflict that will occur.
Living Trusts and Family Conflict
Living trusts dramatically decrease family conflict because living trusts are private documents unlike wills. Wills are public records and anybody is entitled to read somebody's will. Living trusts are simply a written contract that disposes of one's property upon an incapacity or death. Unlike wills, living trusts are designed to be effective during one's life. For example, a living trusts is similar to creating a fictional third party. The proper structuring of one's assets entails transferring one's assets into the name of the living trust. For instance, a home owned by husband and wife would be owned by Jack and Sue Smith's Trust versus Jack and Sue Smith individually.
With living trusts, there are no requirement that disinherited beneficiaries receive any notices. Hence, conflict is less likely because there is no requirement of inviting conflict like wills.
Sean Robertson, Attorney at Law
Robertson Law Group, LLC
Offices in Naperville, Chicago Ridge, and downtown Chicago
Wills and Family Conflict
Wills are simply a written contract that is witnessed by two uninterested witnesses that takes affect upon death. With wills, wills must go through a court process called "probate court". Probate court is the court which administers inheritance issues and determines who is/are the rightful heir of somebody's assets. In my opinion, wills are more often to involve family conflict.
Why? Wills require an executor to mail out notices (often certified notices) to potential heirs. In many instances, an heir is unhappy that a loved one disinherited them or gave them a disproportionate small share of their estate. Last night, I spoke with a lady that has a probate proceeding in Florida. The initial upfront retainer was $3,000 prior to commencing the probate process. Simply put, probate and wills increase family conflict because probate court encourages conflicts to get disputed and resolved. In many cases, potential heirs hire attorneys that find innovative ways to challenge and contest the validity of the will. Often times, wills are done in hospitals, through online services, and while one has an illness such as cancer. This immediately raises suspicions and seldom do non-estate planning attorneys or lay persons plan for the potential conflict that will occur.
Living Trusts and Family Conflict
Living trusts dramatically decrease family conflict because living trusts are private documents unlike wills. Wills are public records and anybody is entitled to read somebody's will. Living trusts are simply a written contract that disposes of one's property upon an incapacity or death. Unlike wills, living trusts are designed to be effective during one's life. For example, a living trusts is similar to creating a fictional third party. The proper structuring of one's assets entails transferring one's assets into the name of the living trust. For instance, a home owned by husband and wife would be owned by Jack and Sue Smith's Trust versus Jack and Sue Smith individually.
With living trusts, there are no requirement that disinherited beneficiaries receive any notices. Hence, conflict is less likely because there is no requirement of inviting conflict like wills.
Sean Robertson, Attorney at Law
Robertson Law Group, LLC
Offices in Naperville, Chicago Ridge, and downtown Chicago
Subscribe to:
Comments (Atom)
