Oak Lawn Estate Planning | It may be time to review your Trust

 Effective January 1^st of this year, the Illinois Legislature enacted new Trust laws. These laws will mostly relate to newly drafted trusts but if you already have an existing trust, this would be a good time to go back to your lawyer’s office to ensure your existing trust is still in compliance with existing law and determine if these new provisions could provide additional opportunities to further your estate planning goals.  

 One important change is that trustees are now allowed to change the place of administration of the trust after providing notice to beneficiaries. This can be helpful to ease the administration of your trust, especially if your beneficiaries and successor trustee live in another state.

The new trust law, Section 760 § 414(a-b) also allows for the modification or termination of a trust if the burden of administering the trust outweighs the purpose of the trust. Your successor trustee may terminate your trust if the value of the trust property is under $100,000.00 and the costs of continuing the trust will substantially impair accomplishing the purpose of the trust. The court could also modify or terminate a trust or remove a trustee and appoint a different trustee if it determines that the value of the assets in the trust are insufficient to justify the cost of its administration. Pet lovers take note, this will not apply to trusts for domestic or pet animals. You should ensure your attorney adds these provisions into your trust to ensure the best financial care for your pet.

Another new provision of the code is that the trustees will now have up to 120 days to determine if they want the role. If your trust outlines a method for a successor trustee to accept trusteeship, that method will be honored. If the trust does not provide a method of accepting trusteeship, the potential successor trustee has up to 120 days to accept that position. If he or she does not accept that position within the prescribed time frame, they are deemed to have declined the trusteeship. Additionally, any potential successor trustee may inspect the trust property to determine if there are any potential liabilities under environmental, or other laws. He or she may choose to act to preserve trust assets without accepting the trusteeship if the successor trustee acts within the 120 days and in good faith. These provisions are outlined in Section 760 § 701 of the act.  

Finally, the trust code now creates additional duties to inform and account to beneficiaries of an irrevocable trust. The trustee shall notify each qualified beneficiary of the trust’s existence, the right to receive a complete copy of the trust instrument, and whether the beneficiary has a right to receive or request trust accounting. The trustee must also inform qualified beneficiaries within 90 days of their name, address, phone number, or later any change in their contact information. The trustee must notify the beneficiaries in advance regarding a change in their compensation or of their anticipated resignation. A trustee must send a trust accounting “at least annually” to all current beneficiaries.

These changes could create pitfalls and landmines for any trustees managing the assets held within a trust. For help with creating, administrating, or reviewing your trusts, please don’t hesitate to call my office at (708) 529-7794 or check out my website at www.jwcolelaw.com.

Oak Lawn Estate Planning | Special Circumstances to Probate a Civil Union

With the passing of the Illinois Civil Union Act, partners may not take advantage of their new found status under the probate act. This advantage comes to play in a number of scenarios. The first of which is if there is children involved. Under the new law, partners under the Civil Union Act have the same rights as spouses under the law. This means that if two incomes were needed to maintain the family, and one partner meets a premature death, the other spouse will have the proper assets to care for their child. The reason for this is that spouses, and not partners, have the privileged of being designated in the primary prefrence category for receipt of assets. A partner would be ensured a primary preference category for up to 9 months and an award of no less than $20,000.00. Partners will also have preference category for being designated as the administrator of the estate. This is wildly different than the previous designation for same sex partners.

The key for couples who have taken advantage of the Civil Union Act is to consult an attorney about the status of their estate planning because there is only a limited number of states that recognize this law. A knowledgeable attorney should be consulted before any move is contemplated. If you would like to find out more about probate or estate planning under the civil union law, call;

Law Office of Jonathan W. Cole
5013 W. 95th St.
Oak Lawn, IL 60453
708-529-7794
www.jwcolelaw.com

Oak Lawn Estate Planning | Did your old attorney really do a good job?

Problem: Your old attorney gave you your estate planning documents and sent you on your way. You have no plan for when you die, just some documents that state who your property goes to upon your death.

Needs: What you needed was a comprehensive plan that includes both a property distribution plan and the methods that that plan can be implemented.

Solution: You need to find an attorney that focuses on more than just a document "pump and dump".

It has been an unfortunate problem that attorneys, particularly older attorneys, have asked some basic questions of clients and then pumped out a will or trust for the client. They have the client come into the office and sing the documents and send them on their way. Often, the client is confused about what this document does and how anyone will be able to use it after their death. Additionally, the attorney doesn't care to help these individuals because she hopes that she will do the probate in the event of your death. What I always tell the Executors of an estate is, "The more disorganized the estate is, the more money I make." This may be why old attorneys simply dump the documents on the client and provide no instruction later. This pump and dump method was par for the course in the old days. Now, clients should expect more. The proper instruction can make the passing of a loved one a manageable process from property standpoint.

You may be asking, what things should my attorney have told me?

 This question is very specific to your situation. People have so many different types of assets and family situations, it would be wrong to try and give a cookie cutter answer. There are some pieces of information that he should have discussed with you which are almost universal to everyone. This type of information makes administrating your estate much easier. I always advocate creating a critical information sheet with your attorney that will be given to the executor that will make their life much easier. This critical information sheet will contain things that would take a good deal of manpower to find and, in some cases, may never be found. A sampling of things that should be included on this sheet would include: passwords to emails, passwords to Facebook, passwords to a blog, passwords to finacial institution accounts, location of keys to lock boxes, listing of all certificate of deposits, listing of all savings/checking accounts, names of brokerage firms, names and numbers of insurance companies, instructions for care of pets, lists of credit cards, etc.

Most Estate Planning lawyers don't even include these things with their documents. This type of estate planning is simply unacceptable. A good estate planning attorney should ensure that they are counselors and not simply a document manufacturer. There is no doubt that a good will or trust makes all the difference in the word in regards to the property going to the proper party and with the least governmental hassle. Why not choose an attorney who makes the hassle on loved ones as small as it possibly can be. After all, is that who you had the trust drafted for anyways.

For more information on getting your Will or Trust, call,

Law Office of Jonathan W. Cole
5013 W. 95th St.
Oak Lawn, IL 60453
708-529-7794
Jonathan@JWColeLaw.com

Oak Lawn Estate Planning | How do I know if I need an Attorney for my Will?

I will begin this post with the disclaimer that you probably already know, I am an estate planning lawyer. What does this mean for you, perhaps my opinion iss a little biased, but I also have more experience than you in this area. I warn you to take my opinion as one of many you will look up and you will surely find the answer you are looking for. 

So the question is, when do I need an attorney to do my Will?

 My answer is, almost always. You question should be why. I will give you three options that are non-attorney related and the reasons these option will leave you lacking.

Option One: Get a sample Will online and just change the name to my name.

        Why This Is A Dumb Idea: You Google a Will online and think it may fit your situation. You say, "I don't have a big estate anyway, what could go wrong?" The short answer is everything. Wills have state specific requirements. In order fr Wills to be valid, you must comply exactly with the rules of your state. Do you know how many wittnesses you need in your state. Do you know the requirements for the execution ceremony for your Will? Do you understand how your property will be divided after you pass? You will have to know the difference between per stirpes and per capita with representation. You probably have not even heard of the concept of per stirpes before. I am sure you will Google it now though. An online Will may seem to fit your situation, but in most cases, they do not. There is a good chance that you do not understand what parts of that Will do not apply to you and what parts you may need that are missing. An online Will can only lead to frustration for you and your family. 

Option Two: I will simply hand write my own wishes and leave them where they can be found.

     Why This Is A Dumb Idea: Some states do not recognize a holographic Will. I am sure you will be Googleing holographic Will now. If you do not know if your state recognizes it, you are asking for a world of trouble. Additionally, Holographic Wills are easily challenged in court. This option leaves either two results. One, your will was never valid in the first place and your property will be distributed through your states intestate statute. Option Two, is that your Will is challenged and that means your sanity is challenged  This is a horrible process and usually breaks up families that were tight before the process. 

Option Three: Purchase a Will from a legal zoom type website.

     Why This Is A Dumb Idea: You are hiring an "attorney" to prepare you a Will. Your Will will be a template, based upon a few questions you answer in a pull down menu. What are the chances that an attorney will be able to find out the proper information in a few pull down menu? Not very likely. This is not a customer satisfaction survey from an online retailer. No attorney can create a plan from you with only a few questions. This is a sham of an operation. People can only provide you a proper plan if they can ask you a question and get a response that is not forced to fit one of three options. You are not the same as your neighbor and your plan can not be the same as your neighbors. This is you Will, not an I pod. The ability to have a dialog is vital to getting a plan that is proper for your situation. Additionally, the cost of a live attorney is not substantially more than an online service. I call those who use this service penny wise, pound foolish. 

So this leaves you with the final question, who doesn't need an attorney to draft their Will? Only those individuals who do not care where their property goes when they die. If your opinion is that, I am dead and I don't care what happens to my stuff, intestate is the way for you. If you would like to have some control where your property goes, you should get an attorney to prepare a Will for you.

Law Office of Jonathan W. Cole

5013 W. 95th St.

Oak Lawn, IL 60453

(708) 529-7794

Chicago Estate Planning Attorney | What is Probate?

You have heard much about it. Probate. It is such a foreign word. You know the kind. The word you here everyone say, but know one seems to know exactly what it is. Probate. What the heck is Probate? You may have heard people on TV say that you need to avoid probate at all costs. Is probate like a trip to the dentist? What about this word could be so bad that it needs to be avoided at all costs. This post will give you the in's and out's of probate. When you are done, you will be one of the few who is no longer muttering this word like it is the evil bogey man of your nightmares. A "Chubacabra" of sorts.

History: The word probate comes from the Latin word "Probatus" meaning proven. But what is proven? In the case of Estate Planning, and more specifically Wills, the Will is Proven. To Prove a Will.  

Now that leaves the next question, What if their is no Will? If there is no Will, the individual is is considered to die intestate. Intestate means simply without a Will. I will leave the whole intestate discussion to another post, but it is important for you to understand that there are two ways for you to find your estate in probate. 

So back to, - Proving What? We have to prove one of two things. If their is a Will, we must prove the Wills Authenticity, Contents, and the Capacity of the Will Maker (Testator). If their is no Will, you die intestate, we must prove and certify the lineage of the deceased both north and south. North meaning those lineal descendants who came before you. Such as your parents and your grandparents and so on and so forth. The descendants who are south are your children and grandchildren and....on and on and on. This includes lateral descendants such as your brothers children as well. 

How Do We Prove It?  I am so glad you asked. 

 
  The method of Proving the Will is simpler than the the intestate method. In order to prove a Will, a court will be the judge of the validity of the will. A Will will be submitted to probate and an opportunity for for people to contest a Will will be set. This time will also allow creditors an opportunity to submit their claims against the decedents estate.  If their are no challenges to the Will, a simple "certification" by the executor of the estate claiming that the Will is valid and accurate will usually suffice. If their is a Will contest, the drama really starts. I will leave that explanation to another post, but rest assured it is a messy and dirty ordeal.

   If you die intestate, the proof is in showing all potential beneficiaries under your states intestate statute. In Illinois, the method that the State disposes of your assets in a manner called "per stirpes". The method of distribution is not important for the purpose of this post, but what is important is that all potential beneficiaries under the per stirpes plan must be identified and either receive a myriad of letters or sign a certification about the probate. The proof come in when you must show the judge that you did not leave a single individual out of the search to notify all potential beneficiaries of the passing of the deceased.

So where does all of this information leave me?

This post leaves you a little more educated about the probate process and what probate is. The next post will help you determine if you would like to avoid probate, or if probate is right for you. Hopefully, your mind is a little more open to probate after understanding what probate is and what is involved in probate.

If you would like to speak to a lawyer about Probate, a Will, a Trust, or the Administration of an Estate, call the Law Office of Jonathan W. Cole at (708) 529-7794. The Law Office of Jonathan W. Cole has been helping people in Oak Lawn and the Chicago-land area with their legal needs and would like to help you as well.

Law Office of Jonathan W. Cole

5013 W. 95th St.
Oak Lawn, IL 60463
(708) 529-7794

Oak Lawn Estate Planning | What is a Trust?

To explain what a trust is and how it works, consider the following example. This example is a common action of a parents throughout the U.S.

You give money to your baby sitter for things that may be needed for your children. You “trust” that she will use the money for the children’s benefit and not for herself. This, in essence, fulfills the four necessary requirements for a trust.

1. Grantor – The person to creates the Trust …i.e. funds the trust

2. Trustee – Some other Person or entity most agree to hold money or property for the benefit of someone else.

3. Corpus – Also known as the “principal” of the trust.

4. Beneficiary – The person or persons who benefit from the trust

This is an example of a basic trust. We will call it a "Babysitter Trust". In this case, you as the parent are the grantor of the trust. You became the grantor when you handed the money to the babysitter. The babysitter is the trustee of the trust when she is holding the money in accordance with your directions. The money you give to the babysitter is the corpus of the trust. This also could have been property that the babysitter had possession and control over. Finally, your children are the beneficiaries of the trust. The children are the ones who the money is intended to benefit.

This is the basic four necessary parts of a trust. It really makes a lot more sense when it is broken down into its four parts in a simple everyday example. Now that you know what a trust is, look for the next post explaining how to categorize a trust. If you need help setting up a trust, contact the Law Office of Jonathan W. Cole at (708) 529-7794. 

Law Office of Jonathan W. Cole

5013 W. 95th St.
Oak Lawn, IL 60463
(708) 529-7794

Oak Lawn Estate Planning | The Need to Follow Up

The problem with any plan is complacency. With the big three changes always happening, you can not rest on your estate plan forever. The big three being, 1) changes in the laws that effect your estate plan, 2) changes in your assets, and 3) changes in your family structure. In light of this obvious and inevitable change that will occur in the real world, people are stuck believing that their static plan for their assets will be good forever. It is like taking a picture today, only to be curious about why you do not look like this 20 years later.

 The excuses are endless. It costs too much money, it is impossible to know how many changes should prompt me to re-evaluate my plan. I don't have time to update my plan. The list goes on and on. I am always perplexed by the ignorance of people. Good intentions are not enough. You need to take action. If I could yell this any louder, I would lose my voice and my neighbors would be mad at me. You need to take action. If your estate plan provides for your darling two children, who are now both college graduates and getting married themselves, you are long past time. I will give you a rough guide to go by, for determining your re-evaluation period.

No major changes to the big three (see above) - every 7-10 years
A major change to any one of the big three (see above) - every 3-5 years
A major change to any two of the big three (see above) - every 1-3 years
A major change to all of the big three (see above) - see your attorney immediately

If you have a decent relationship with your lawyer, you can probably ask him or her to review your estate plan, and there will be no changes that need to be made or only a minor change. In most cases, this minor change will cost very little and you will now have a current estate plan. In most cases, you would not need to draft a new Will or Trust. All that will be needed is a codicil to your current Will. I can not stress enough how frustrating a stale Estate Plan can be. In some cases, a stale Will or Trust can frustrate the entire purpose that it was meant to support. Please keep you Wills current. As always if you would like to know more about the Will, Trust, and Power of Attorney Process contact:

Law Office of Jonathan W. Cole
5013 W. 95th St.
Oak Lawn, IL 60463
(708) 529-7794

Oak Lawn Estate Planning | More on Long Term Care Insurance

In yesterdays post, I told you how having long term care insurance is one aspect of Estate Planning that is often overlooked. Today I will answe the top five questions I recieve about long term care insurance.

1. What are the odds I will need long term care? The answer is it is probably prettly likely you will need to pay for some long term care. As advances in medical technology increase the average age of the population, the numbers of individuals that that need long term care in increasing by leaps and bounds. A good number of individuals now have major surgery sometime throughout their lives and need to stay at a nursing home or need substantial help to stay at home.

2. Where can long term care services take place? A big falacy is that you must go into a nursing home to get long term care. This is not the facts. You can recieve long term care in a nursing home if you choose, but it is also available in your home or in a community living complex. There is a good deal of flexibility in where your care can take place. It is nice to know that you can be cared for in the comfort and privacy of your own home.

3. Aren't I covered by my medical insurance? As a general rule you are not. Long term care normally is not classified as medical treatment. Insurance companies usually do not cover the type of care that is needed. Hospice might be covered by your medical insurer but general long term care is not.

4. Can't I spend my savings on my care? Of course you can. There is no reason you shouldn't spend all of the money you saved your entire life on caring for yourself. In fact, I would encourage paying your own way and not being a burden on the Government. My suggestion is to purchase the proper insurance to achieve the same results, but still retain your assets. That way you can leave them to your children or favorite chairity. Or if nothing else, you can spend it on your hobby of collecting rare baseball cards.

5. So how does long term care insurance work again? There is a major difference between these two concepts, Medical Care and Activities of Daily Living (ALD). Long term care helps you pay for the ALD's you need when you are sick and recovering. You will need someone to help you get dressed in the morning, make breakfast, clean up after yourself, etc. These are not considered medical treatments but still are necessary to maintin a basic standard of living. Medical care pays for drugs and shots. Long terms care pays for lifes activities, and not just the fun ones.

 I hope this helps you understand the benefits of long term care insurance. Please consider it in your estate planning and call the Law Office of Jonathan W. Cole to get an estate plan in place.

Law Office of Jonathan W. Cole
5013 W. 95th St.
Oak Lawn, IL 60463
(708) 529-7794

Oak Lawn Estate Planning | Long Term Care Insurance

You are probaby asking yourself, "Why is an attorney talking about insurance?" I thought attorneys estate planing was all about Wills, Trusts, Powers of Attorney, and eligibility for State and Federal programs. That may be true for most attorneys, but to have a real comprehensive plan your attorney should consider every aspect of your future. This includes your life insurance, health insurance, IRA and pension, title of your home, finacial future of your children and even your long term care. If your attorney is leaving out a portion of your future, how can you trust him or her to help you plan.

 You future planning is like a boat. You need everything to be right before your boat leaves the dock. Only a fool would have a great hull on a boat but leave without a motor. No one in their right mind would leave the dock without fule for their engine. Who would like to be on the sea with no fresh water? Obviously, no one would think of heading out into the sea with this type of preperation. So why would you accept only partial planning for your future.

Now you know that a comprehensive Estate Plan includes long term care insurance, but what is long term care insurance. The nutshell version of long term care insurance is that it provides funds for you if you become incapacatated and can not take care of yourself. This insurance does not just apply to the elderly. If you were in an accident and needed to be cared for 24 hours a day for a couple years while you are recovering, long term care insurance will cover it. If you develop a disease where you need help injecting yourself and getting dressed. Long term care insurance will cover it. I could go on and on about the benefits of long term care insurance, but I will give you this fact and let you think about it until my next post. The national average annual cost of a private room in a nursing home is over $79,000.00 a year. That is $217 dollars a day. This type of expenditure can quicky depleate the asses of any size estate. Especially if you multiply this cost by two for a married couple.If you would like to have an estate to leave your children, consider long term care insurance as an integral part of your estate plan. Look for more about long term care insurance in upcoming posts.

 If you would like to know more about how to start your own estate plan. Call the Law Office of Jonathan W. Cole to find out how a will trust and power of attorney can get you on the right tract for the future.

Law Office of Jonathan W. Cole
5013 W. 95th St.
Oak Lawn, IL 60463
(708) 529-7794

Chicago Estate Planing | Meeting Your Attorney For The First Time

So after much thought and deliberation, you have decided you need an estate plan. You already know, from my previous post, not to ask "What does a Will Cost?"  The question is, what should you ask and what should you bring into your first meeting? If you have a good attorney, he or she should have already sent you some information. The information may consist of a letter, a questioner, and/ or a financial assessment. I personally send all three to a client before I meet the client for the first time. The letter that I send to a client helps the client know what to expect of the estate planning process. The questioner helps the client get into the frame of mind that is necessary to know who are potential people for testamentary gifts. It also helps the client know what property they have and know about, and what property they have and might have forgotten. It also helps a client understand that the title of property (i.e. the way your deed is titled) is important for estate planning purposes.

 So now you have the proper documentation for your first meeting with your attorney. What else should you have. I have found that the most satisfied clients bring with a small notebook and a pen and ask questions that they have prepared before the meeting and take down my answers. After the meeting with me, they look over their notes and the information I have told them can sink in. By having questions in advance, you can wait until I explain the process to you, and when my explanation is done you can ask any questions that I may have not addressed. Without those preset questions, you may be overwhelmed with other parts of the Estate Planning process and forget to ask some of the questions you wanted to know. Additionally, I usually cover some part of the Estate Planning process that my client never heard of before. By coming prepared with questions and have a notebook to jot down new concepts, you will feel better about your initial consultation and have a more pleasant estate planning process. I would love to hear from you about your estate planning needs in the comments below. If you need an estate plan, contact my office, The Law Office of Jonathan W. Cole, or learn more about Estate Planning on my offices estate planning page. Good luck with your estate plan.

 Jonathan W. Cole