Creating Ease of Access For Your Life Online

With technology literally being at our fingertips, we have integrated our digital presence with our physical.  More likely than not, you have created an account online, have a profile online, or even do all your investing or money management online.   While access to our online lives is convenient now, we may not think about the inability for someone else to access our digital information when we are no longer in control, due to disability or death.  Creating a means for someone else to have access to these accounts when you are unable creates ease of administration.  What most do not realize is that even though someone is named as your Trustee/Executor or as an agent under your Power of Attorney, it does not allow them immediate access to your accounts.  If the accounts are not properly named, there is no ability to log-in, or if there is no direction to allow someone else access to the accounts, your accounts could take months or years to finally gain access, if ever.  Glick and Trostin, LLC has some advice to help avoid these problems. 

We recommend that you create a plan:

1.   Create a list of your online accounts, and include the following information:

• Mediums used to access these accounts 
• Internet Service Providers
• Personal Websites or Web hosting
• Email accounts
• Blogs/Vlogs
• Any storage mediums (DropBox, private servers, Cloud Systems)
• Social Networks
• Online subscriptions
• Websites that deal with financials (Banking, Utilities, Brokerage accounts, Notes)
• Software applications Cellphones (Personal and Business)

2.   Record your usernames and passwords, access codes or patterns, or any other unique means of access in a private document, on your computer or somewhere safe. 

3.   In your estate planning documents (POAs, Wills, or Trusts), make mention of these accounts and direct what actions should be taken by your named party for those accounts.

• Do not put any login information in your Will as it is a public document

4.   Add a provision that will allow access to these accounts if for some reason the document is lost or is not accessible.

Proper planning and keeping information updated removes ambiguities and ensures your plans are implemented per your wishes with as few roadblocks as possible.  Simple updates will reduce any waste of time, and save costs as issues like this can create more fees in the future. 

If you have any questions about how to leave your trusted family and advisors access to your digital life, or any other potential issues with your estate plan, please feel free to contact Glick and Trostin, LLC at 312-346-8258. 

Disclaimer: The materials on this website are provided for informational purposes only and do not constitute legal advice.  Transmission of the information is not intended to create, and receipt does not constitute, an attorney-client relationship between any attorney and any other person, group, or entity. No representations or warranties whatsoever, express or implied are given as to the accuracy or applicability of the information contained herein.  No one should rely upon the information contained herein as constituting legal advice.  The information may be modified or rendered incorrect by future legislative or judicial developments and may not be applicable to any individual reader's facts and circumstances.

Estate Planning For Millennials

Many of today’s 20 and 30 somethings (“Millennials”) are either unemployed or just recently employed, and due to financial concerns may still be living with their parents or roommates. Coupled with the general trend of having children later in life, it is likely that many Millennials either do not have children or have only started to grow their families. Since most people consider forming an estate plan only after they have amassed some assets (i.e. a savings, owning real estate, retirement plans) or after having children, it is highly unlikely that this population has even thought about estate planning. However, even for the textbook Millennial, it is never too early to start planning.

Most commonly, people think of estate planning as writing a Will. An estate plan actually consists of a number of documents including a Will, Trust(s), Living Will, and Powers of Attorney, each of which performs important tasks (for more information please click here). A Millennial with no children and few assets may not have a need for all of these documents but we recommend focusing on a few essential estate planning documents for now: Powers of Attorney and possibly a Will.

Powers of Attorney: After you turn 18, your parents no longer have a say in your medical treatment and may not have access to your bank account to pay your bills or complete financial transactions that you started (i.e. buying a house, a car, etc.). In the event of an accident that leaves you unable to make decisions for yourself, your parents or a loved one would have to go to court and ask for the authority to step in on your behalf. Then there is no guarantee that the person you trust most and who knows you the best will end up making decisions for you. The best way to avoid these problems and to plan for the unexpected is to have a Power of Attorney for Health Care and a Power of Attorney for Property. These legal documents name specific and trusted people as “agents” to make decisions for you, based on your wishes, when you are unable to. 

Will: The state in which you live has a plan in place should you pass away without having made a Will. In Illinois, when you die and have no spouse or children, your estate (no matter the size) will be divided into equal shares to your parents and your siblings. If you are married with no children, your spouse inherits everything and if you have children but no spouse, your children will inherit everything. You may decide that this result is acceptable for your situation. However, in the event you would like to specify that certain people receive more or less of your estate, or if you want to protect your assets for your minor children, you will need to have a Will.

A Power of Attorney and Will are not necessarily complex documents but they are very important. As long as they are executed correctly, they are legally recognized and tell others what your wishes are and what you authorize them to do on your behalf. Other documents can be added to your estate plan and updated as needed when your circumstances change (i.e. marriage, having

children, or moving).

If you would like to begin creating your estate plan or if you have any questions, please feel free to contact Glick andTrostin, LLC at 312-346-8258.

Disclaimer: The materials on this website are provided for informational purposes only and do not constitute legal advice. Transmission of the information is not intended to create, and receipt does not constitute, an attorney-client relationship between any attorney and any other person, group or entity. No representations or warranties whatsoever, express or implied are given as to the accuracy or applicability of the information contained herein. No one should rely upon the information contained herein as constituting legal advice. The information may be modified or rendered incorrect by future legislative or judicial developments and may not be applicable to any individual reader's facts and circumstances.

2021 Illinois 'Tax Deduction' for Dividends from Abbvie, Abbott Labs, Caterpillar and Walgreens Boots Alliance

As tax time nears and you begin to gather your tax documents, you may want to look closer at your dividends for the year. If you are an Illinois resident, you may be permitted to subtract certain dividends from specific Illinois companies. Under Illinois law, dividends you receive from a corporation that conducts business in a foreign trade zone and is designated a “High Impact Business” are eligible for the subtraction modification from Illinois base income.

Over the past few years, I have worked with a number of clients who received dividends from companies that qualify for the dividend subtraction in Illinois.  Depending on the total dividend distribution, this subtraction can be a sizable reduction in Illinois State Income Taxes, especially for shareholders who may have received stock through their employment with the companies.

Currently, I am aware of the following 4 companies that have published letters to their shareholders notifying them of the potential dividend subtraction for Illinois in the past. Below are the most current letters online.

Abbott Laboratories (Tax year 2021 letter)

AbbVie Inc. (Tax year 2021 letter)

Caterpillar Inc (Tax year 2020 letter)

Walgreens Boots Alliance, Inc. (Tax year 2020 letter)

There may be other qualifying companies in Illinois although it is best to receive a letter from the company if you decide to utilize the dividend subtraction on your income tax return.  If you believe you have received dividends from a qualifying company in the past 3 years, you may want to determine if filing an amended Illinois Income Tax Return is worthwhile.

If you have any questions about tax and estate planning, please feel free to contact Glick and Trostin, LLC at 312-346-8258.

Disclaimer: The materials on this website are provided for informational purposes only and do not constitute legal advice.  Transmission of the information is not intended to create, and receipt does not constitute, an attorney-client relationship between any attorney and any other person, group or entity. No representations or warranties whatsoever, express or implied are given as to the accuracy or applicability of the information contained herein.  No one should rely upon the information contained herein as constituting legal advice.  The information may be modified or rendered incorrect by future legislative or judicial developments and may not be applicable to any individual reader's facts and circumstances.

Everyone can Now Take a Charitable Deduction on Their Taxes

Since the last tax law was passed at the end of 2017, nearly nine in 10 taxpayers now take the standard deduction on their income tax return and are no longer able to claim a charitable deduction for donations made to qualifying charities. 

Now, under the CARES Act and the Taxpayer Certainty and Disaster Tax Relief Act of 2020, individuals who take the standard deduction can now claim a deduction of up to $300 for cash contributions made to qualified charities in 2021.  Married couples can deduct up to $600.  

Therefore, as you begin to put together your tax documents to file your 2021 tax return, double check your charitable contributions for the year as you may be eligible for an additional tax deduction when you file. 

If you have any questions about tax and estate planning, please feel free to contact Glick and Trostin, LLC at 312-346-8258.

Disclaimer: The materials on this website are provided for informational purposes only and do not constitute legal advice.  Transmission of the information is not intended to create, and receipt does not constitute, an attorney-client relationship between any attorney and any other person, group, or entity. No representations or warranties whatsoever, express or implied are given as to the accuracy or applicability of the information contained herein.  No one should rely upon the information contained herein as constituting legal advice.  The information may be modified or rendered incorrect by future legislative or judicial developments and may not be applicable to any individual reader's facts and circumstances.

Charitable Giving with Taxable Retirement Accounts

More and more Americans have become better at putting money away towards retirement through 401(k)s, IRAs, and other retirement plans within their organizations.  Unsurprisingly, that means that come retirement, a large portion of an individual's wealth is held in tax-deferred accounts that create taxable income.  For those who are charitably inclined, there are options that individuals can utilize to reduce taxable income and to leave assets to charity or religious organizations while leaving other assets to family and friends that may not be taxable. 

Qualified Charitable Distribution ("QCD"): Once you have reached the age of 70 1/2, you can begin to make distributions directly from your IRA to a qualified 501(c)(3) charity.  By doing this, you can make limit the amount that would otherwise be taxed as ordinary income.  This would also be calculated in your annual required minimum distribution (RMD).  By utilizing a QCD, your taxable income would be lower and could also impact your Medicare premiums by reducing them in future years.

Charity Beneficial Designation:  If you wish to leave a portion of your estate to a charitable organization after your passing, you may be told to write those wishes into your Will or Trust.  Whereas, if you have a sizeable retirement account, it may be best to designate the charity directly as a beneficiary of your 401(k) or IRA assets.  This arrangement allows you to easily change charities you may wish to leave your assets to without the need to update your estate planning documents.  Secondly, you would be leaving taxable assets compared to a charity that is able to avoid taxation on the assets to leaving retirement assets to an individual that would be taxable to them on distribution.  This would allow you to leave the taxable, retirement assets to charities and leave other assets that would not result in income tax to individual beneficiaries.

Utilizing these two options allow you to give to your favorite charities while also obtaining tax benefits for yourself and to your heirs. 

If you have any questions about tax and estate planning, please feel free to contact Glick and Trostin, LLC at 312-346-8258.

Disclaimer: The materials on this website are provided for informational purposes only and do not constitute legal advice.  Transmission of the information is not intended to create, and receipt does not constitute, an attorney-client relationship between any attorney and any other person, group, or entity. No representations or warranties whatsoever, express or implied are given as to the accuracy or applicability of the information contained herein.  No one should rely upon the information contained herein as constituting legal advice.  The information may be modified or rendered incorrect by future legislative or judicial developments and may not be applicable to any individual reader's facts and circumstances.

A Simple Estate Plan with the Use of a Transfer on Death Instrument (TODI)

The largest asset that most individuals possess during their life is their residence.  Over the years, your residence may have been where you raised your children, shared family holidays, and spent money improving and repairing. 

When the main asset in your estate is real property, it oftentimes requires a probate estate to be opened in order to transfer the property to heirs or beneficiaries under a Will.  This can be costly and time-consuming for many families.  Thankfully, in Illinois, we have the option to create a Transfer-on-Death Instrument ("TODI") for real property that easily conveys ownership of the property on the owner's death to named beneficiaries. 

The TODI can be an effective substitute for a will or trust if a residence will be the main asset of an estate.  As long as the TODI is signed with the formalities of a Will (two witnesses and notarized), the TODI is effective once recorded with the County of the real property. Upon the death of the owner, the beneficiary then has to record a "notice of death affidavit and acceptance."  

With the use of a TODI, the transfer of the real property can be less complex and less costly than using a Will or Trust.  It is also revocable if the owner changes his/her mind and wishes to sell the property at any time.  

If you have any questions about preparing an estate plan, please feel free to contact Glick and Trostin, LLC at 312-346-8258.

Disclaimer: The materials on this website are provided for informational purposes only and do not constitute legal advice. Transmission of the information is not intended to create, and receipt does not constitute, an attorney-client relationship between any attorney and any other person, group or entity. No representations or warranties whatsoever, express or implied are given as to the accuracy or applicability of the information contained herein. No one should rely upon the information contained herein as constituting legal advice. The information may be modified or rendered incorrect by future legislative or judicial developments and may not be applicable to any individual reader's facts and circumstances.

5 Reasons to Review Your Estate Plan

If your estate plan or your parent’s estate plan hasn’t been reviewed in the last few years — or the last twenty years — it’s time to review your estate plan — sooner, not later. Rather than fix a messy situation after death, it is best to work with an estate planning attorney to review your estate plan with you now. The following 5 reasons help explain why older documents may no longer work to achieve your or your parents’ wishes.

1. Stale documents are disliked by financial institutions. If a power of attorney is more than eight years old, don’t expect it to be received well by a bank or brokerage house. The financial institution will probably want to get an affidavit from the attorney who originally created the document to attest to its validity. A regular review and refresh of estate documents allow for the document to remain current as well as confirm that the individuals named as agents and their contact information.
2. State laws change. Changes to state laws alter how estates are handled. They may have a positive impact that could benefit you and your family, but they could also have a negative effect. If the will or trust hasn’t been reviewed in ten or twenty years, you won’t know what consequences new state laws have on your estate planning. More importantly, if the impact is negative, you won’t be able to take advantage of revising your estate planning to protect your estate.
3. Lawyers use updated language in estate planning documents. In addition to changes in the law, there are changes to language that may have a big impact on the estate. Many attorneys have changed the language they use for trusts based on the SECURE Act, which went into effect in 2020. If your parent has a retirement account payable to a trust, it’s critical that this language be modified so that it complies with the new law. Lacking these updates, your parent’s estate plan may create unnecessary increases in taxes, fees, or penalties.
4. Federal estate laws change over time. Recent years have seen major changes to estate law, from the aforementioned SECURE Act to current proposals to federal exclusions and gift taxes. Is your estate plan (or your parents) in compliance with the new laws? If assets have changed since the last estate plan was written, there may be tax law changes to be incorporated. Are there enough assets available to pay the taxes from the estate or the trusts? 
5. The decedent’s wishes may not be followed if documents aren’t updated. Over time, individuals die, people get married, children and grandchildren are born, and relationships change.  If an individual's wishes are not updated in their estate planning documents, the inheritance may go to individuals that are no longer in the person's life or may leave out important people. 

We recommend that our clients review their estate plans with us every three years. This way we can ensure that their estate plans will continue to meet their goals. 

If you have any questions about tax and estate planning, please feel free to contact Glick and Trostin, LLC at 312-346-8258.

Disclaimer: The materials on this website are provided for informational purposes only and do not constitute legal advice.  Transmission of the information is not intended to create, and receipt does not constitute, an attorney-client relationship between any attorney and any other person, group, or entity. No representations or warranties whatsoever, express or implied are given as to the accuracy or applicability of the information contained herein.  No one should rely upon the information contained herein as constituting legal advice.  The information may be modified or rendered incorrect by future legislative or judicial developments and may not be applicable to any individual reader's facts and circumstances.