The new Illinois QTIP election: Answers to your questions and more questionsBy Jason S. OrnduffTrusts and Estates, November 2009After significant discussion and lobbying, Illinois has joined 11 other states in enacting a state-qualified terminable interest property (QTIP) election separate and distinct from the federal QTIP election of I.R.C. Section 2044.
The Roth decision in 2010: Conversions and afterthoughtsBy David A. BerekTrusts and Estates, November 20092010 promises to be an opportunistic year for Roth IRA planning, and an interesting year to say the least from a tax legislation standpoint.
Ethics corner: Careful with capacityBy Sara SiddiqiTrusts and Estates, September 2009ACTEC commentary on clients with diminished capacity, specifically Model Rule of Professional Conduct (MRPC) 1.14, provides additional guidance to the estate planning practitioner. Specifically, the commentary provides advice on how to address the various disability determinations that a lawyer may encounter: a client whose testamentary capacity is uncertain, borderline, or doubtful.
MINORITY REPORT: Understanding the Illinois Uniform Transfers to Minors ActBy Jay S. GoldenbergTrusts and Estates, September 2009Guardianship has been the traditional approach to dealing with a basic issue: how do you transfer property to a minor – who is legally incapable of selling or managing it – since their contracts are not valid.
The School of 529: Learning by Trial and ErrorBy Katarinna McBrideTrusts and Estates, September 2009Section 529 plans are an attractive and convenient means of saving for college that offer substantial tax benefits.
The what ifs… Tax reflectionsBy Katarinna McBrideTrusts and Estates, September 2009Once again the estate tax is being used as political leverage rather than being thoughtfully and appropriately revised to reflect the modern dynamics of families and wealth.
Planning for post-EGTRRA wealth transfer taxesBy Sean YoungTrusts and Estates, August 2009As the days wane on the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), the legislation’s final act would be to repeal the estate and GST taxes altogether in 2010, while retaining the gift tax along with a $1 million gift tax exclusion and a maximum rate of 35 percent.
Choosing a Roth IRABy Jesse T. CoyleTrusts and Estates, July 2009The ultimate consideration in deciding whether to choose a Traditional or Roth IRA generally becomes whether you would rather pay tax now or later.
Ethics cornerBy Donald L. ShriverTrusts and Estates, July 2009If you have blown the Statute of Limitations, the 1st District says just extend it to meet your own needs.
A GRAT way to transfer wealth. Well, at least for now…By Jesse T. CoyleTrusts and Estates, July 2009If you possess assets that are appreciating fast (or at least you think they will), the GRAT is simply one of the most effective ways of transferring value at a low cost. The future of this technique is not clear, however, as proposed legislation could render it ineffective.
Should Illinois adopt the TOD deed?By Darrell DiesTrusts and Estates, July 2009Transfer on death of securities has worked well in Illinois for many years, so why not extend the transfer-on-death concept in Illinois to real estate and thereby allow a named beneficiary in a TODD to take direct ownership of real estate upon the grantor’s death? Let’s take a closer look at the TODD concept?
Uncertain times for estate planners: What changes loom for 2009?By Jesse T. CoyleTrusts and Estates, July 2009Several possible changes that may occur in the very near future pose great uncertainty for estate planners. The biggest uncertainty revolves around the estate tax.
Claims against a decedent’s non-probate property in IllinoisBy Joel A. SchoenmeyerAgricultural Law, June 2009Dealing with claims against an Illinois decedent’s non-probate property is critical in cases where the decedent’s probate estate is insufficient to pay all valid claims, or where no probate estate has been opened for the decedent.
New virtual representation lawBy Lyman W. WelchTrusts and Estates, June 2009SB 188 passed both houses of the Illinois legislature with no dissenting votes. When signed by the Governor, the new law will become effective January 1, 2010. This new law originated from the ISBA Trusts and Estates Section Council.
Probate Act problems in proving up willsBy Lawrence P. DevensTrusts and Estates, June 2009This article examines the problem that arises when a petitioner must rely on a witness attestation clause to admit a will in a “formal proof” hearing under the Probate Act.
The Safety GRAT™By Robert T. NapierTrusts and Estates, June 2009Many clients believe that the greatest enemy to their wealth is the federal estate tax. The reality is that very few estates actually pay a federal estate tax and current estimates are that fewer than 20,000 estates annually will actually pay the federal estate tax. Furthermore, it is understood that quality estate planning can materially reduce, if not eliminate, any tax due.
Inside the too-speculative continuumBy Alan E. StumpfAgricultural Law, May 2009A taxpayer advocating valuation of built in capital gains inside of the too-speculative continuum needs to start his advocacy with an understanding of what a willing buyer and a willing seller will take into account.
Private annuitiesBy Jesse T. CoyleTrusts and Estates, May 2009A private annuity can be an effective way of transferring wealth to a family member, freezing the estate, avoiding estate and gift tax, and ensuring a lifetime stream of income.
Appraisal opportunities and challenges in down marketsBy Tony GarvyTrusts and Estates, April 2009By understanding the approach of appraisers to determining the value of closely held business in the current market conditions, estate planners can better service their clients during the market downturn.
Estate planning in a low-interest-rate environmentBy Jesse T. CoyleTrusts and Estates, April 2009This article discusses the mechanics of techniques such as intra-family loans, SCINs, installment sales to grantor trusts, GRATs, CLATs and charitable gifts of personal residence remainders, and how they flourish in a low-interest environment.
The fine art of fine art investmentsBy Jesse T. CoyleTrusts and Estates, April 2009Investing in art can be an exciting opportunity for many individuals to make great profit, diversify a portfolio, and to add aesthetic beauty to an individual’s home. But as with all investments, engaging in the collection of art for investment purposes carries its own unique risks that should thoroughly investigated and evaluated.
Observations on Illinois House Bill 0151—The Will Deposit StatuteBy William L. CleaverElder Law, April 2009Illinois House Bill 0151 was introduced January 14, 2009. As an amendment to the Illinois Secretary of State Act, a new Section 5.15 would become part of 15 ILCS 305. It may serve to assist in addressing a problem, the solution to which has been elusive. At the same time, it also raises a question of whether there might be alternatives to what the Bill would accomplish.
T & E Ethics CornerTrusts and Estates, April 2009Some guidelines for jointly representing spouses in estate planning.
Ahoy, Ahoy! A Tax Bill on the HorizonBy Jesse T. CoyleTrusts and Estates, March 2009In a bi-partisan effort, U.S. Representatives Mark Kirk (Republican) and Harry Mitchell (Democrat) introduced H..R. 498 ( “Tax Bill”), legislation designed to address the problems with the estate tax and capital gains tax. But in order to become law this bill still has a few significant hurdles to pass.
The Doctrine of Merger: A vanishing ruleAgricultural Law, March 2009The Merger Doctrine still sees use in the state, although like many common law rules its position has changed over the years. As recently as 2008, the Illinois Supreme Court dealt with a case primarily focused on the doctrine, Czarobski v. Lata, 882 NE2d 536 (Ill 2008).
