Check Your Property Tax for the Homeowner and Senior Exemption

You may have recently received a letter from the Cook County Assessor, Fritz Kaegi, regarding the Cook County Homeowner and Senior Exemptions. If you are a homeowner in Cook County, it is a good exercise to check to make sure you are receiving the homeowner and senior exemptions on your property tax bill. Like many other residents, you would like to see your property tax 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 address or PIN on the Cook County Assessor's website or Cook County Treasurer's website.  Either website will show if an exemption has been applied to the prior year.

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 Assessor's website.  If you have lived in the property for a number of years and have not claimed the exemption, you can file a 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. You may want to request the former owner to submit an exemption if they are qualified. 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.

Amending 2020 Tax Return with Unemployment Compensation

Now that President Biden has signed into law the "American Rescue Plan", there are a number of benefits that individuals should take note of such as the next round of stimulus payments and extended unemployment benefits.  One aspect that has not been discussed much is that for individuals who received unemployment compensation in 2020. The first $10,200 per person will not be taxed if the household makes under $150,000.  For married couples filing jointly, this means that the first $20,400 will be tax-free and could result in tax savings of over $1,000.

If you haven't filed your income tax return yet and believe you may qualify for this tax break, it is best to wait until directions have been more clearly defined from the IRS so you can receive this tax reduction. It could take a few weeks for the IRS to provide guidance on how to implement this tax law change in the middle of the tax season but your patience may pay off.  It may also impact your state income taxes as each state treats income differently than the IRS, but it may allow the tax break to benefit your state return as well.

Individuals who have already filed their 2020 income tax returns and did not take this benefit will want to review their situation to see if filing an amended return will allow them to receive this tax break.  If you believe you qualify, contact your tax preparer to ask how you may go about filing an amended return. Fortunately, the IRS has now implemented the ability to e-file amended returns starting this year.  That will hopefully expedite the process for those who normally would have to file and mail in an amended return which could take months to process. 

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 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 2020 letter)

AbbVie Inc. (Tax year 2020 letter)

Caterpillar Inc (Tax year 2020 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.

New Year's Resolution - Create an Estate Plan

As the dust settles on 2020 and we begin to prepare for what hopes to be a better 2021, many of us will make the annual New Year's Resolution.  Most of the resolutions will deal with improving ourselves in numerous ways.  The motivation for many of these goals is to take care of yourself and your loved ones.  

One goal to set for 2021 is to make sure you have an estate plan in place. This may consist of drafting a will or simply reviewing beneficiaries on your accounts.   Too often, people push this process off until it is too late and their family is left attempting to figure out how matters are to be sorted.

A recent 2020 Q4 Wells Fargo/Gallop Investor and Retirement Optimism Index reports that close to half of the surveyed investors did not have a will or an estate plan in place. The majority of those with some type of plan were over the age of 65.  That leaves a substantial number of families without any type of estate plan in place. 

Estate planning does not have to be difficult or overwhelming.  The fact is that not having some simple documents in place such as a Power of Attorney for Health care or for Property can create a much more expensive problem later on. 

Making a New Year's Resolution to create an estate plan is important and doable. By accomplishing this resolution, you can rest easier and help protect your interests and wishes for your family. 

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.

What Happens if I don't have a Will?

When discussing estate planning with friends and family, a common response is "I should probably prepare a Will someday." While that is the first reactionary comment, many also want to know what happens if they do nothing.  The simple answer to that is, it depends. 

Some people may fear that if they do nothing, all of their assets will go to the state or federal government. Unless you owe significant taxes, that is unlikely to be the case.  In fact, all states have laws that direct who inherits from a decedent if there is no will.  These laws are known as "intestacy statutes." 

In Illinois, the intestacy statute directs as follows:

If there is a surviving spouse and no descendants, 100% of the estate would go to the surviving spouse.

If there is a surviving spouse and also one or more descendants of the decedent (child or grandchild): 1/2 of their assets go to the surviving spouse and the other 1/2 is shared by the decedent's descendants per stirpes (in equal shares). 

If there is no surviving spouse but a descendant of the decedent: the entire estate goes to the decedent's descendants per stirpes.

If there is no surviving spouse or descendant, but a living parent, brother or sister: then the entire estate to the parents, brothers and sisters in equal parts. 

The statute lays out further examples, with the intent that the estate of the decedent goes to family members along the bloodline.  This may or may not be the wishes of the individual who has passed but it does allow for the family to distribute the estate according to the law.

Another way assets may be transferred upon someone's death without a Will is through a beneficiary or transfer-on-death designation.  This is usually the case for retirement plans (401k and IRAs) and insurance policies. These assets allow for an individual to name a beneficiary so that the assets are paid directly to the named beneficiary upon the death of the holder of the plan or policy. 

A transfer-on-death designation may also be available with certain bank or investment accounts.  This allows the account holder to name a beneficiary so that the asset transfer to an individual or charity upon death.

While options allow for a distribution of a decedent's estate, the result may not be exactly how the individual intended. However, other than having a Will, utilizing some of these options may be an effective strategy when putting together an estate plan with a Will. To have a better understanding of how your estate will be distributed, it is helpful to sit down with an estate planning attorney to whether it would benefit you and your family to prepare a Will.

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.

Is Your Estate Plan Up-to-Date?

If you have created an estate plan, you are ahead of almost 70% of people who recently said they do not have a Will.  However, it is important to review your plan every few years, and when certain life events create a need for immediate review. 

When Should I Review My Estate Plan?

There is no set time frame for reviewing your estate plan but every three to five years it is a good idea to contact your estate planning attorney to talk about changes that have happened since the last time you reviewed your estate plan.  As family members move and get married, it is important to update contact information on the Power of Attorney forms to ensure that the most up-to-date information is listed in case of emergency.  There are also changes in the law that may impact your estate plan that could require amendment. 

Then there are life events that happen which require more of an immediate update to your estate plan.  Many of those events include the following:

Marriage - When you marry, you may want to include your new spouse in your estate plan.  You may open joint checking accounts or purchase a home together. A complete review of your Will, Trust, Powers of Attorney, retirement plans, and life insurance policies should take place. If a child of yours gets married, that may also cause a review depending on how your child may take an inheritance. 

Divorce - After a divorce, accounts that were once held jointly are divided and assets may be transferred from one spouse to the other.  One of the most common mistakes is not removing the ex-spouse from your estate planning documents, retirement plans, and life insurance documents. 

Birth of Children - This could require a guardian provision in a Will or updates to your Power of Attorney forms.  With the birth of grandchildren, you may want to include them in distributions or review trust distributions.

Children reach age of majority - Depending on your state of residence and your estate planning documents, the age of majority could create instant access to an inheritance.  Updating the age of distribution to beneficiaries may be warranted. Also, you should be aware that once a child becomes an adult, you as the parent are no longer able to access your child's financial or health records without express permission, or by having a Power of Attorney.

A significant change in assets - Your career may advance or you may inherit assets, as assets increase, the need for more sophisticated estate planning could be necessary.  Further, depending on your profession, you may wish to look into asset protection.

Retirement - Entering into retirement, your estate plan may be drafted to include retirement plan assets, to and provide for a successor trustee, or an agent, to assist you with your financial transactions in the event you can no longer do so yourself. Reviewing your plan should be discussed as well as naming appropriate beneficiaries. 

Serious Illness - Your plan should be designed to handle your incapacity or terminal illness. If a change to your health occurs, a review of your plan should take place.

Disability - Whether your own disability or that of a beneficiary, you may wish to update your plan to include special needs provisions or discuss Medicaid planning.

Death of spouse or beneficiary - The death of anyone named in your estate planning documents is a definite cause for review.  You do not want to leave potential fiduciary positions unfilled and the death of a beneficiary should trigger a review of distributions.

Whether it is one of these events that cause you to review your plan or you simply want to make sure you know where your documents are, it is important to have a current estate plan as an outdated plan could have unintended consequences. 

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.

Power of Attorney Documents In the Age of COVID

Power of Attorney documents (POAs) are important legal documents for everyone once they reach the age of majority.  They may be even more important in today's world as we deal with the current pandemic. As people who are more susceptible to the virus limit their exposure in public, it may be helpful to name an agent to assist them in the handling of financial matters. Or in the case of individuals who contract COVID, having POAs may be critical to making financial and health care decisions if they are hospitalized for a period of time. 

POA documents are relatively easy to put in place. Most states have two separate POAs, one that covers matters pertaining to health care decision making and one that deals with property or financial matters.  The documents are normally forms that are state-specific and drafted by the legislatures to reduce any confusion within the state.

The Durable Power of Attorney deals with financial or property matters and is a document that names a person as "agent" to act on your behalf in case of disability or unavailability.  The document can allow an agent to handle financial matters (e.g., banking, bill paying, etc.) as well as property transfers.  This document can be drafted broadly or be limited to specific acts. 

A Health Care Power of Attorney designates an individual to make important health care decisions on your behalf.  This can go into effect when you are unable to make decisions due to a temporary or permanent disability or when the document is executed.

Most individuals think of Wills and Trusts when it comes to estate planning, but because the Power of Attorney documents are there to assist you during your life, you should not be without them.

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.