Simple Steps to Ensure That Your Assets are Protected During this Uncertain Time

In the midst of the COVID-19 pandemic, our country and society as a whole seems to be facing more uncertainty than ever before. The virus has significantly disrupted nearly everyone’s daily routine. We are left to remain in our homes and contemplate the circumstances, which often causes more worry.

Though an uncomfortable topic, it is especially important during these uncertain times to ensure that your assets are protected. If something were to happen to you, would your assets be distributed to the people you would want them to be distributed to? In the event you are incapacitated, would the individual best suited to speak on your behalf be empowered to do so? Will your personal and real property be taken care of? Developing a comprehensive estate plan is a quick and cost-effective way to ease some of these burdens. The following documents are common tools utilized in an estate plan:

A Basic Will: A Will is the instrument that passes your personal assets to the individual or individuals who you wish to receive your assets. This instrument also allows you to name a Guardian for your children. Unlike a Trust, a Will is a public document that is typically filed with your local Clerk of Court Office. A Will is an especially important instrument because if you were to pass without a Will, your entire Estate would be distributed through the laws of intestacy, which can lead to probate. Probate arises when there is a dispute as to where a particular asset or assets should be distributed. Probate issues can lead to unwanted costs such as attorneys' fees and court costs.

Declaration of Trust: While a basic Will is a public document that can be seen by anyone who inquires, a Declaration of Trust is a private instrument that is not recorded. While being private, a Declaration of Trust (a so-called “living trust”) has the advantage of avoiding probate with respect to the assets which are transferred to the Trust during your lifetime.  In other words, assets which you transfer to your Declaration of Trust during your lifetime will continue to be held by the Trust after death and, in turn, will be distributed in accordance with the provisions of the Trust.  In this way, those assets will “by-pass” probate while still being distributed in a manner consistent with your estate plan.  In addition, a funded Declaration of Trust enables you to provide for the management of your assets should you become disabled.  For income tax purposes, so long as you are alive, your Declaration of Trust is “transparent” and you will be taxed (as owning directly) any assets transferred to the Trust.  This means that you can transfer assets into your Trust without any effect on your current income taxes.

Power of Attorney for Healthcare: The Health Care Power of Attorney enables you to select an agent to make health care decisions for you (and includes provisions regarding life-sustaining machines and anatomical gifts).  Although typically effective upon execution, this Power of Attorney is designed to facilitate the handling of your health care decisions should you be unable to.  

Power of Attorney for Property ("Durable Power of Attorney"): Similar to the Power of Attorney for Healthcare, a Power of Attorney for Property is an instrument that enables you to select an individual to make decisions on your behalf should you be unable to. However, this particular Power of Attorney allows your elected agent to make financial decisions on your behalf, as opposed to decisions related to your medical treatment and healthcare. These financial decisions can be as broad or narrow as you would like. From handling tax matters to Social Security or employment matters, to simply dealing with one single property, the Power of Attorney for Property is an extremely powerful but flexible estate planning instrument. 

Before signing estate planning documents, it is extremely important to have a preliminary discussion with the people closest to you about what should happen to your assets once you have passed. While this may be a difficult and emotional conversation, this is critical to the estate planning process. It is also important to keep in mind that these documents can be (and typically are) often modified throughout your lifetime. During times of uncertainty and worry, having one less burden to worry about can make a significant difference. 

If you have any questions about preparing an 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.

Avoiding Potential Scams during the Coronavirus COVID-19 Pandemic

      It is no secret that con artists, scammers, and other nefarious actors prey on fear and vulnerability. The outbreak of COVID-19 has been no exception. The sudden and rapid spread of COVID-19 has allowed con artists and scammers across the United States to take advantage of nervous and vulnerable families. These scams have ranged from selling counterfeit vaccinations for COVID-19 itself to impersonating members of the CDC or WHO in order to obtain personal information. Unfortunately, scammers are mindful of the fact that COVID-19 has been affecting the elderly most significantly, and often use this to their advantage.

    There is also reportedly a rapid increase of credit card scams as scammers are calling panicked and vulnerable people every day fraudulently stating that they can receive $1,000 per each adult household member and$500 for each child household member if they simply relay their credit card information over the phone.

        

    Tax season has also given scammers another outlet into obtaining personal information. Scammers are increasingly using tax season to obtain bank information from susceptible individuals. An increasingly common scam involves impersonating a bank employee and asking unsuspecting people for personal information such as Social Security numbers and other information in order to steal their identities.

    There have also been reports of scammers impersonating Human Resource Department managers and requesting W-2 forms from dozens of employees at a time in an attempt to fraudulently obtain financial information.

   In order to combat these increasing dangers, it is important to exercise extreme caution when dealing with solicitations and emails:

• Be mindful of any “Miracle Drug” that someone claims can immediately cure or treat COVID-19. There remains no vaccine for this new virus, so any claims of a vaccine are fraudulent.

• Take notice of who is sending you a solicitation via email. An email address can often look suspicious on its face, but others can look like one being sent from an employer or a source that you trust. To examine further, try performing a Google search on the sender’s email address. This will likely bring up any scams that the particular email address has performed in the past.

• Any solicitation that requires urgent action will typically be fraudulent. If you receive a phone call that claims a “limited time offer” or email with the subject that reads “URGENT” it will likely be a scam.

• Install an antivirus program on your device, which will effectively protect you against suspicious emails and solicitations.

• If you receive a suspicious phone call and you may suspect it is a scam, hang up immediately. The longer they have you on the line, the more likely they are to obtain your personal information.

   If you feel that the authenticity of a solicitation can be questioned, you can report suspicious solicitations by calling (312) 814-2595. For COVID-19 related scams, Illinois residents can call the state’s consumer fraud hotline at 1 (800) 243-0618.

   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.

Illinois Tax Break on Abbvie, Abbott, Caterpillar and Walgreens Dividends

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 had a number of clients with stock ownership 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 company.

I am currently aware of the following 4 companies that have published letters to their shareholders notifying them of the potential dividend subtraction for Illinois that have current letters online for 2019.

Abbott Laboratories (Tax year 2019 letter)

AbbVie Inc. (Tax year 2019 letter)

Caterpillar Inc (Tax year 2019 letter)

Walgreens Boots Alliance, Inc. (Tax year 2019 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.

Estate Planning and Your Digital Assets

Over the past twenty years, as access to the internet has increased, our digital footprint has exponentially expanded.  Whereas previously we may have had an email account and a few logins to online retailers, we now have multiple email and social media accounts, our banking and utility bills are almost all paperless, and we have subscriptions to websites for shopping, news and much more.

The question is how do we access these various assets to stop auto-billing, obtain important information and correspondence if the user is disabled or deceased?  This has become a larger and larger problem for administrators of estates as they attempt to collect assets and information.  

One option is to keep a spreadsheet with the logins and passwords of all of your accounts.  This can be quite tedious with passwords always changing, and a challenge keeping this information private.  The other option is the ability to authorize a fiduciary to access these records through your estate planning documents.  

In 2015, Illinois passed the Revised Uniform Fiduciary Access to Digital Assets Act 755 ILCS 70.  That allows an individual with digital assets to authorize a designated recipient to access the user's digital assets, or instruct the entity to not disclose some or all of the digital assets.  

This law now provides a guardian, executor or trustee the right to request access to online accounts, files, transactions, social media, email and more with a direction specified under a power of attorney, will or trust document.  With this access, the fiduciary may access information, close accounts and obtain information that may be helpful in administration. 

Depending on when you prepared your estate planning documents, you may want to update your documents to provide for this authorization.  As we become more of a digital world, having access to these digital assets and accounts can make the role of fiduciary be less cumbersome.

If you have any questions about this or other tax and estate planning matters, 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.

Who Determines What Happens to Me After I Die?

Death is not a subject that many people like to think about.  This one of the biggest hurdles many have in preparing an estate plan, just thinking of the fact that we are mortal can cause us to delay the discussion.  Once the planning begins, one topic seems to come up beside where all of your assets go.  What happens to me?

As there can be disputes regarding cremation or where the final resting place may be for a loved one, having some direction is helpful for the family.  In Illinois, there is a statute named the "Disposition of Remains Act" 755 ILCS 65.  This act provides that an individual can direct the control of their remains via written directions as long as they satisfy the requirements of the Act.  If a person does not designate an individual, the Act provides for an order of who would have the right to control and make decisions regarding the remains:

1. The person designated in a written instrument pursuant to the Act;
2. Any person serving as executor or legal representative of the decedent's estate and acting according to the decedent's written instructions contained in the decedent's will; 
3. The individual who was the spouse of the decedent at the time of the decedent's death;
4. The sole surviving competent adult child fo the decedent; or if there is more than one surviving competent adult children of the decedent, the majority of the surviving competent adult children;
5. The surviving competent parents of the decedent;
6. The surviving competent adult person or persons respectively in the next degree s of kindred or, if there is more than one surviving competent adult person of the same degree of kindred, the majority of those persons;
7. Any recognized religious, civic, community, or fraternal organization willing to assume legal and financial responsibility;
8. In the case of individuals who have donated their bodies to science, or whose death occurred in a nursing home or other private institution and the institution is charged with making arrangements for the final disposition of the decedent, a representative of the institution;
9. Any other person or organization that is willing to assume legal and financial responsibility.

As you can see, the decision may be different from what you intended depending on your circumstances and if you haven't taken steps to declare your wishes in a written document.  One option is to utilize the statutory form known as the Disposition of Remains Form that is cited under Section 10 of the Act or include your wishes in your Will.

Another option is to preplan and/or prepay your funeral and enter into an agreement with a funeral home.  This can help ensure your wishes are followed for your funeral and also alleviate any concern regarding funeral costs that may be placed on loved ones. 

If you have questions regarding 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.

Property Tax Bills Are Out, Check to Make Sure You Have the Homeowners Exemption

If you are a homeowner in Cook County, you will soon be receiving the 2nd installment of your property tax bill. Like many other residents, you would like to see that tax amount reduced if possible.  One simple way to get a nice reduction is to ensure you are receiving the homeowner's exemption (also known as Homestead Exemption) if you own your residence.  This exemption is given to property owners on their property tax bill. Taxpayers whose single-family home, townhouse, condominium, co-op or apartment building (up to six units) is their primary residence can save $250 to $2,000 per year, depending on local tax rates and assessment increases. 

If you are over 65 years of age, you may also be entitled to a Senior Exemption or Senior Freeze on your property taxes.

First, check to see if you have a homeowner's exemption by searching your property by PIN or address on the Cook County Treasurer's website.

You can also review the most recent 2nd installment of your property tax bill, it will list the exemptions at the lower portion of the bill and whether you received any exemptions for that tax period. 

Next, if you believe you are entitled to an exemption, you can obtain the exemption forms on the Cook County Assessor's website.  If you have lived in the property for a number of years and have not claimed the exemption, you can file Certificate of Error forms to request a refund for the Homeowners and/or Senior Exemption for the years that you qualify.

Finally, if you are a new homeowner, you may not qualify for this year's homeowner exemption but put a reminder to file for the exemption next year.  This is also important for anyone soon to obtain the age of 65 so that they file to obtain the Senior Exemption.  

This exemption is not limited to Cook County or the State of Illinois.  Contact your local Property Tax Assessor or Treasurer to confirm that you are receiving all credits for being a homeowner in your state.

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.

Why You Should Review Your Estate Plan

If you already have an estate plan in place, congratulations as you are in the minority of the population.  When was the last time you reviewed that estate plan?  For many individuals, they created an estate plan when they had children or at a certain time in their life that caused them to want to have a plan put in place such as a death in the family.  While it is great that you at one time created the estate plan, changes in your life since you created that estate plan could cause that once well-thought-out plan to have different consequences from what your current intentions are. 

First, many life events warrant a review of your estate plan.  This could be a death, divorce, marriage, the birth of a child(ren), grandchildren or changes to the contents of your estate.  Any of these items could cause you to want to name different individuals from those you may have named as beneficiaries, guardian, executor, trustee or power of attorney.  

Second, changes to state and federal laws.  The most obvious change is the increase in the federal estate-tax exemption.  Whereas 20 years ago, the estate tax exemption was around $600,000 before an estate was taxed, today, the estate tax exemption is $11.4 million.  Therefore, you may have made certain provisions in your estate planning documents to avoid estate taxes but those provisions may no longer be necessary.  For some, state estate tax limits might be more of a concern than the federal exemption.  The power of attorney forms are also usually updated by each state every few years to incorporate changes in the statutes.  It is best to update your property and health care power of attorney every 3 to 5 years to utilize the newest forms.

Finally, do you know where your documents are?  Depending on the time that has passed since you originally executed your estate plan, the attorney who assisted you with your estate plan may have retired, changed firms or passed away.  Many times the original documents are held by the attorney and if you are not able to track the attorney down, those documents might be lost. 

The good news is that many changes people make to their estate plans can be done with simple amendments or updated statutory forms.  If you have already gone through the heavy lifting of preparing an estate plan, the updates can be a lot less time-consuming. 

If you have questions regarding 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.